FICA Tax Calculator

FICA tax comprises two distinct parts: Social Security and Medicare. For standard employees, the total Social Security tax rate is 6.2% paid by the employee and 6.2% matched by the employer, levied up to an annual wage limit. The Medicare tax rate is 1.45% for employees with no wage cap, plus an additional 0.9% Additional Medicare tax for high-income earners exceeding specific filing thresholds. If you are self-employed, you pay both halves through the Self-Employment Contributions Act (SECA), though self-employed individuals can deduct half of their SECA tax liability on their income tax returns.

Consider a single filer earning an annual gross income of $150,000 as a W-2 employee. First, calculate the Social Security tax: assuming the wage cap is set at $160,200, the full $150,000 is subject to the 6.2% rate, resulting in $9,300. Next, calculate the standard Medicare tax at 1.45% on the entire $150,000, which equals $2,175. Because the filer's income exceeds the $200,000 single-filer threshold for Additional Medicare tax, that specific additional tax is $0. Adding these together, the total FICA tax deduction for the year is $11,475.

Keep a close eye on your year-to-date earnings, especially if you switch jobs mid-year, as excess Social Security withholdings can occur and be claimed back on your annual tax return. Self-employed individuals should remember to set aside approximately 15.3% of their net earnings for self-employment tax obligations. Always verify that your employer is withholding the correct Additional Medicare tax once your cumulative wages cross the statutory threshold.