What payroll tax (FICA) is
FICA funds Social Security and Medicare. Employees pay 6.2% for Social Security on wages up to the annual wage base, plus 1.45% for Medicare on all wages.
Employers match both, so a combined 15.3% is sent to the government — half from the worker's pay, half from the employer.
High earners pay an extra 0.9% Medicare surtax above $200,000 ($250,000 married), which the employer does not match.
Employee vs employer share
The employee share is withheld directly from each paycheck. The employer share is an additional cost on top of wages.
Self-employed people pay both halves themselves — that is the 15.3% self-employment tax.
The Social Security wage base
Social Security tax only applies up to a yearly wage base ($176,100 for 2025); earnings above it are not subject to the 6.2%. Medicare has no such cap.
This is a federal estimate using 2025 tax-year figures and the inputs you provide. It does not include state tax, credits, or every deduction. Confirm with the IRS or a tax professional before filing.
Frequently asked questions
What is the FICA tax rate?
7.65% for the employee (6.2% Social Security + 1.45% Medicare) and another 7.65% from the employer, for 15.3% total.
Is there a wage limit on FICA?
Social Security applies only up to the annual wage base; Medicare has no cap, and a 0.9% surtax applies to high earners.
Do employers pay payroll tax too?
Yes. Employers match the employee's Social Security and Medicare, doubling the amount sent to the government.
How is this different from self-employment tax?
Self-employment tax is the same 15.3%, but the self-employed pay both the employee and employer halves themselves.