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How Much Social Security and Medicare Tax Do You Pay?

Employers and employees each pay 6.2% Social Security tax on the first $132,900 (2019 limit) of wages. However, employers and employees each pay 1.45% Medicare tax on all wages. Social Security tax is commonly shown as FICA tax withholding on paystubs.

If you are self-employed you also pay Social Security and Medicare taxes. The self-employment tax rate is 15.3% and is equivalent to the employer and employee portion of Social Security and Medicare taxes. The rate consists of two parts: 12.4% for Social Security tax which is imposed on the first $132,900 (2019 limit) of self-employment income and 2.9% for Medicare tax which is imposed on all self-employment income.

Additional Medicare Tax on High Earners

There is an additional 0.9% Medicare tax on earned income (wages and self-employment income) over $200,000 ($250,000 married filing jointly) which your employer must withhold.

Employers do not need to match the additional 0.9% Medicare tax.

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Richard Pon CPA, CFP