If you've ever looked closely at your paycheck, you've seen the term "FICA" listed under deductions. FICA taxes are a mandatory payroll contribution that funds two of the most critical social insurance programs in the United States: Social Security and Medicare. Understanding these taxes is key to understanding your true take-home pay. Our FICA Tax Calculator provides a simple way to estimate your annual contribution based on your gross income, giving you a clear picture of how much you're investing in your future and the nation's social safety net.
How to Use the FICA Tax Calculator
Estimating your annual FICA tax liability is straightforward. You only need one piece of information:
- Enter Annual Gross Income: Input your total income earned from wages or salary for the year, before any taxes or other deductions are taken out.
- Calculate Your FICA Tax: Click the "Calculate FICA" button to see a breakdown of your contributions to Social Security and Medicare, along with your total FICA tax for the year.
What is FICA? A Detailed Breakdown
FICA stands for the Federal Insurance Contributions Act. It's a U.S. federal law that requires a payroll tax from both employees and employers to fund Social Security and Medicare. These are not income taxes; they are separate, dedicated payroll taxes that you pay on every dollar you earn, up to certain limits.
Social Security Tax (OASDI)
The Social Security portion of FICA is officially known as the Old-Age, Survivors, and Disability Insurance (OASDI) tax. This program provides retirement, disability, and survivor benefits to millions of Americans.
- Tax Rate: The employee tax rate for Social Security is 6.2%. Your employer pays a matching 6.2%.
- Wage Base Limit: This tax is only applied up to a certain annual income limit, which is adjusted most years for inflation. For 2024, the Social Security wage base limit is $168,600. This means you do not pay the 6.2% Social Security tax on any earnings above this amount in a single year.
Medicare Tax (HI)
The Medicare portion of FICA is the Hospital Insurance (HI) tax. This funds Medicare Part A, which helps cover inpatient hospital care, skilled nursing facility care, hospice care, and home health care for seniors and certain disabled individuals.
- Tax Rate: The employee tax rate for Medicare is 1.45%. Your employer also pays a matching 1.45%.
- No Wage Base Limit: Unlike Social Security, there is no income limit for the Medicare tax. You pay the 1.45% on all of your earned income.
Additional Medicare Tax for High Earners
To help fund the Affordable Care Act (ACA), an "Additional Medicare Tax" of 0.9% applies to high-income earners. This is an extra tax paid only by the employee; there is no employer match for this portion. The income thresholds for this additional tax are:
- $250,000 for Married Filing Jointly
- $125,000 for Married Filing Separately
- $200,000 for all other filing statuses (Single, Head of Household, etc.)
You begin paying this extra 0.9% on every dollar of earnings *above* these thresholds. For example, a single individual earning $250,000 would pay the additional tax on $50,000 of their income. This calculator does not include the Additional Medicare Tax in its simplified estimation.
FICA for Self-Employed Individuals
If you are self-employed (a freelancer, contractor, or business owner), you are responsible for paying both the employee and employer portions of FICA taxes. This is known as the Self-Employment (SE) Tax, and it totals 15.3% (12.4% for Social Security + 2.9% for Medicare). To learn more and calculate this specific liability, please use our dedicated Self-Employment Tax Calculator.
Frequently Asked Questions About FICA
What's the difference between FICA tax and income tax?
FICA taxes are dedicated payroll taxes used exclusively to fund the Social Security and Medicare programs. They are calculated as a flat percentage of your earnings. Income tax, on the other hand, is a tax on your overall income (including unearned income like investments) and is used to fund all other government operations. Income tax is calculated using a progressive bracket system where higher levels of income are taxed at higher rates.
What if I have two jobs and my combined income is over the Social Security limit?
This is a common scenario. Each employer is required to withhold FICA taxes without regard to your other jobs. This means if you have two jobs, it's possible for your total Social Security withholding to exceed the annual maximum. If this happens, you can claim the overpaid portion as a refundable tax credit when you file your annual income tax return. Your W-2 forms will show the total amount withheld for each tax, making it easy to spot an overpayment.
Is FICA tax refundable?
Generally, no. FICA taxes are not refundable in the same way income tax can be. They are your contributions to your future Social Security and Medicare benefits. The only common situation where you might get a refund for FICA taxes is if you overpaid the Social Security portion due to having multiple jobs, as described above.
Do I pay FICA tax on bonuses and tips?
Yes. FICA taxes are levied on nearly all forms of earned compensation, including bonuses, commissions, and tips. These are considered part of your wages and are subject to the same 6.2% Social Security (up to the limit) and 1.45% Medicare withholding as your regular salary.