What you pay into Social Security and Medicare in 2025

In 2025, you pay 6.2% of your wages into Social Security and 1.45% into Medicare, for a combined 7.65%. Your employer matches both amounts. If you're self-employed, you pay both the employee and employer share — 12.4% for Social Security and 2.9% for Medicare — though you can deduct half of it on your tax return.

These percentages have stayed the same since 1990 for Social Security and since 1992 for Medicare. What changes year to year is the wage base — the maximum amount of income subject to Social Security tax. In 2025, that limit is $168,600. Any income above that amount is not taxed for Social Security, though Medicare tax applies to all wages with no upper limit.

There's also an additional Medicare tax of 0.9% that applies to wages over $200,000 for single filers and $250,000 for married couples filing jointly. This extra tax has no employer match and was added in 2013.

Key Takeaways

  • The Social Security tax rate is 6.2% of wages up to $168,600 in 2025, with your employer paying an equal amount.
  • Medicare tax is 1.45% of all wages with no income limit, plus an additional 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly).
  • Self-employed workers pay both the employee and employer portions of both taxes but can deduct half the total on their tax return.
  • The wage base for Social Security increases most years based on national wage growth, but the tax rate itself has not changed since 1990.

How the Social Security wage base changes each year

The Social Security wage base is adjusted annually to reflect increases in average national wages. The Social Security Administration announces the new limit in October for the following year. In 2024, the limit was $168,600, and it remained the same for 2025 because average wage growth was minimal.

This means if you earned $170,000 in 2025, you paid Social Security tax on only the first $168,600 of that income. The remaining $1,400 was not subject to Social Security tax. However, all $170,000 was subject to Medicare tax.

The wage base has grown significantly over decades. In 2000, it was $76,200. In 2010, it was $106,800. The increases reflect wage growth in the economy, not changes to the tax rate itself.

Self-employed workers and the combined tax rate

If you're self-employed, you pay both sides of the payroll tax on your net business income. That means 12.4% for Social Security (up to the $168,600 wage base) and 2.9% for Medicare, totaling 15.3% before any deductions.

You report this on Schedule SE (Self-Employment Tax), which is part of your Form 1040. The calculation uses your net profit from Schedule C (if you're a sole proprietor) or your share of partnership income. You then transfer the Social Security and Medicare portions to your Form 1040.

The tax code lets you deduct half of your self-employment tax on your Form 1040. This deduction reduces your taxable income but does not reduce the actual self-employment tax you owe. For example, if you owe $3,000 in self-employment tax, you can deduct $1,500 from your income, which lowers your federal income tax bill.

The additional Medicare tax for higher earners

Anyone earning above $200,000 (single filers), $250,000 (married filing jointly), or $125,000 (married filing separately) pays an extra 0.9% Medicare tax on the income above those thresholds. This tax has no employer match — you pay it entirely yourself, even if you're an employee.

Your employer should withhold this additional tax from your paycheck if your wages exceed the threshold. If you have multiple jobs or your spouse also works, you may need to adjust your withholding on your W-4 to avoid underpaying. Self-employed workers calculate this on Schedule SE and report it on Form 1040.

This additional tax was introduced in 2013 as part of the Affordable Care Act and is separate from the regular 1.45% Medicare tax that everyone pays.

How tax withholding works on your paycheck

Your employer withholds Social Security and Medicare taxes directly from your paycheck. The amount withheld appears on your pay stub and is reported to the IRS on your W-2 form at the end of the year. The employer then sends both your withholding and their matching contribution to the IRS.

You don't have to do anything to make this happen — it's automatic. However, you should check your pay stub occasionally to make sure the withholding is correct. If you have multiple jobs, your withholding might be wrong because each employer calculates it independently without knowing about your other income.

The taxes withheld go into a trust fund that pays current Social Security and Medicare benefits. They are not held in an individual account with your name on it, even though your earnings record is tracked separately for benefit calculation purposes.

What happens if you work past full retirement age

You continue to pay Social Security and Medicare taxes on your wages no matter how old you are, even if you're already receiving Social Security benefits. There is no age at which these taxes stop being withheld from your paycheck.

However, if you're receiving Social Security benefits and you earn above a certain amount before reaching full retirement age, your benefits are temporarily reduced. In 2025, that earnings limit is $23,400 per year. Once you reach full retirement age, you can earn any amount without affecting your benefits, though you still pay the taxes.

The earnings test only applies to benefits received before full retirement age. After you reach full retirement age, the taxes you pay go toward increasing your future benefit amount, but your current benefit is not reduced.

Frequently Asked Questions

Why does my employer match Social Security and Medicare taxes?

The payroll tax system was designed to split the cost of funding Social Security and Medicare between workers and employers. The employer match is required by law and is considered part of your total compensation, even though you don't see it in your paycheck. Both your portion and your employer's portion go into the same trust funds that pay benefits.

Can I opt out of paying Social Security or Medicare taxes?

No. These taxes are mandatory for all employees and self-employed workers with income above certain thresholds. The only exception is certain religious groups that have received an exemption from the IRS, which is rare and requires specific documentation.

What if I worked in another country — do those years count toward Social Security?

It depends on whether the United States has a totalization agreement with that country. These agreements let you combine work credits from both countries toward Social Security benefits. You can contact the Social Security Administration to learn about your work abroad counts, or check their website for the list of countries with agreements.

Do I pay Social Security tax on tips?

Yes. Tips are considered wages and are subject to Social Security and Medicare taxes. Your employer should withhold these taxes from your paycheck or from other wages you earn. If tips push your total income above the wage base limit, only the income up to $168,600 is subject to Social Security tax.

What if my employer didn't withhold these taxes?

Contact your employer when ready and ask them to correct the withholding. If they refuse or go out of business, you can file Form 941-X (Adjusted Employer's Quarterly Federal Tax Return for Wages, Withholdings, and Taxes) or contact the IRS. You may also owe these taxes yourself if your employer doesn't pay them, so it's important to address this quickly.