FICA Tax Calculator
Calculate your 2025 Social Security and Medicare taxes as an employee or self-employed individual, including the Additional Medicare tax on high earners.
🏛️ What is FICA Tax?
FICA tax (Federal Insurance Contributions Act) is the mandatory payroll tax that funds two federal programs: Social Security and Medicare. For 2025, employees pay 6.2% of wages toward Social Security (up to the $176,100 wage base) and 1.45% toward Medicare on all wages, for a combined FICA rate of 7.65%. Employers must match both contributions dollar-for-dollar, meaning the true cost of FICA per employee is 15.3% of wages - split equally between employer and employee.
Self-employed individuals face a unique FICA situation: because they are both employer and employee, they pay the full 15.3% self-employment (SE) tax on their net profit, multiplied by a factor of 92.35%. The 92.35% adjustment levels the playing field with employees, who do not pay FICA on the employer's share. As partial compensation, self-employed individuals can deduct 50% of their SE tax from gross income when calculating federal income tax - a meaningful deduction at higher income levels.
High earners face an additional layer: the 0.9% Additional Medicare Tax, introduced under the Affordable Care Act, applies to wages exceeding $200,000 for single filers, $250,000 for married filing jointly, and $125,000 for married filing separately. Unlike the base Medicare rate, the Additional Medicare Tax has no employer match - it falls entirely on the employee. Employers begin withholding it once wages exceed $200,000 regardless of filing status; any adjustment for household income is settled on the tax return.
Understanding your FICA tax is important for paycheck budgeting, freelance rate-setting (self-employed individuals need to set aside roughly 15.3% for SE tax on top of income tax), and retirement planning - your Social Security benefit at retirement is directly tied to your FICA-taxed earnings history. Use this calculator to model both W-2 employment and self-employment scenarios for any income level.
📐 Formula
📖 How to Use This Calculator
Steps
💡 Example Calculations
Example 1 — Employee Earning $75,000 Annual Wages
W-2 employee with $75,000 annual wages, single filer, 2025
Example 2 — High Earner Above the SS Wage Base ($220,000)
W-2 employee with $220,000 wages, single filer - SS wage base cap and Additional Medicare apply
Example 3 — Self-Employed with $80,000 Net Profit
Freelancer / sole proprietor with $80,000 net profit on Schedule C, 2025
Example 4 — Married Couple Filing Jointly, $260,000 Combined Wages
Dual-income couple filing MFJ, each earning $130,000 - total household wages $260,000
❓ Frequently Asked Questions
🔗 Related Calculators
What is FICA tax and what does it fund?
FICA stands for Federal Insurance Contributions Act. It funds two federal programs: Social Security (old-age, survivors, and disability insurance) and Medicare (hospital insurance for people 65+). Employees pay 6.2% for Social Security (up to the wage base) and 1.45% for Medicare, with employers matching both amounts. Self-employed individuals pay both the employee and employer shares.
What is the Social Security wage base for 2025?
The 2025 Social Security wage base is $176,100. This means the 6.2% Social Security tax applies only to the first $176,100 of wages. Wages above this amount are not subject to Social Security tax. Medicare tax (1.45%) has no wage base cap - it applies to all wages regardless of amount.
What is the Additional Medicare tax and who pays it?
The Additional Medicare tax is 0.9% imposed on high earners. It applies to wages above $200,000 for single and head of household filers, above $250,000 for married filing jointly, and above $125,000 for married filing separately. Employers withhold it once wages exceed $200,000, but your actual liability depends on household filing status - any reconciliation happens on your tax return.
How much FICA tax does a self-employed person pay?
Self-employed individuals pay the combined employer and employee FICA rates: 12.4% for Social Security (up to the wage base) and 2.9% for Medicare, totaling 15.3% on net self-employment income multiplied by 92.35% (the net earnings factor). They may also owe 0.9% Additional Medicare if SE income exceeds filing status thresholds. The good news: 50% of SE tax is deductible from gross income.
Can I deduct self-employment tax on my income tax return?
Yes. Self-employed individuals can deduct 50% of their total self-employment tax from their gross income on Schedule 1 of Form 1040. This deduction reduces your adjusted gross income (AGI) and therefore your federal income tax - it is not an itemized deduction and does not require Schedule A. It does not reduce the SE tax itself.
Does FICA apply to all types of income?
FICA applies to wages, salaries, tips, and net self-employment income. It does not apply to investment income (dividends, capital gains, rental income), retirement distributions, Social Security benefits, interest income, or most passive income. Independent contractors pay SE tax on their net profits, which is functionally equivalent to FICA.
What happens if I have multiple employers and overpay Social Security tax?
If you work for multiple employers and your combined wages exceed $176,100, each employer withholds SS tax on wages up to $176,100 independently. You may overpay total SS tax. The excess SS tax withheld is refundable as a credit on your federal tax return (Form 1040, Schedule 3, Line 11). Medicare has no cap, so no overpayment is possible for Medicare.
Do employers pay any FICA taxes?
Yes. Employers must match the employee's Social Security (6.2%) and Medicare (1.45%) contributions, paying an identical amount from their own funds. For an employee earning $75,000, the employer pays $4,650 in Social Security and $1,087.50 in Medicare tax - a combined employer cost of $5,737.50 on top of the gross salary. The employer matching is a business expense and is not reflected in employee wages.
Is FICA tax the same as the payroll tax?
FICA taxes are the primary component of payroll taxes, but 'payroll tax' is a broader term that also includes federal income tax withholding and state income tax withholding. FICA specifically refers to the Social Security and Medicare taxes mandated by the Federal Insurance Contributions Act - the 6.2% SS and 1.45% Medicare rates that both employees and employers pay.
How does the 92.35% factor work in self-employment tax calculation?
Net self-employment income is multiplied by 92.35% (= 1 minus the employer SE share of 7.65%) before applying SE tax rates. This adjustment reflects the fact that employees do not pay FICA on the employer's share of FICA - so SE tax mirrors that by reducing the base. For example: $100,000 net profit × 92.35% = $92,350 × 15.3% = $14,130 SE tax.
What is the total FICA cost to an employer for a $100,000 salary?
For an employee earning $100,000, total FICA cost to the employer is: Social Security match = $100,000 × 6.2% = $6,200; Medicare match = $100,000 × 1.45% = $1,450; total employer FICA = $7,650. The employer also withholds $7,650 from the employee's wages (same rates), for a combined total FICA contribution of $15,300 per year - split equally between employee and employer.
Do Social Security benefits depend on FICA tax paid?
Yes, indirectly. The Social Security Administration uses your 35 highest earning years of wage history (on which FICA was paid) to calculate your primary insurance amount (PIA). Higher FICA-taxed wages over your career translate to a higher monthly Social Security benefit at retirement. Medicare benefits (Part A) are also tied to FICA: 40 quarters (10 years) of covered work typically entitles you to premium-free Part A.
Are tips subject to FICA taxes?
Yes. Cash tips of $20 or more per month must be reported to your employer and are subject to FICA taxes just like regular wages. Your employer withholds the employee share of FICA from your reported tips. Allocated tips shown on your W-2 (Box 8) are also subject to FICA. The employer's Social Security and Medicare match on tip income is also required.