Your Social Security and Medicare tax rates in 2024
If you work, you pay 6.2% of your wages into Social Security and 1.45% into Medicare. 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. They don't change year to year. What does change is the wage base — the maximum amount of income subject to Social Security tax. In 2024, you stop paying Social Security tax once you've earned $168,600 for the year. Medicare tax has no wage cap, so you pay it on every dollar you earn.
If you earn over $200,000 as a single filer (or $250,000 married filing jointly), you also pay an additional 0.9% Medicare tax on the income above that threshold. This extra tax went into effect in 2013 as part of the Affordable Care Act.
Key Takeaways
- You pay 6.2% of wages to Social Security and 1.45% to Medicare, with your employer matching both amounts.
- The Social Security wage base changes yearly — in 2024 it is $168,600, meaning you stop paying Social Security tax once you reach that amount.
- Medicare tax has no wage cap, so you pay 1.45% on all earnings, plus an extra 0.9% if you earn over $200,000 (single) or $250,000 (married).
- Self-employed workers pay both the employee and employer portions, totaling 12.4% for Social Security and 2.9% for Medicare.
How the wage base affects what you pay
The Social Security wage base rises most years because it's tied to the average wage growth in the country. The Social Security Administration announces the new base in October for the following year. This means your paycheck in January might have a different Social Security tax deduction than your paycheck in December, even though the percentage stays 6.2%.
Once you've earned $168,600 in 2024, your employer stops withholding Social Security tax from your paychecks for the rest of that year. If you change jobs mid-year, you might pay Social Security tax on more than the wage base if your new employer doesn't know what you've already earned. You can claim the overpayment as a credit on your tax return, but it's worth tracking yourself to avoid the hassle.
Medicare tax works differently. There is no wage base limit, so you pay 1.45% on your first dollar and your last dollar of income, no matter how much you earn in a year.
What happens if you're self-employed
Self-employed workers file Schedule SE with their tax return to calculate self-employment tax. You pay 12.4% for Social Security (up to the wage base) and 2.9% for Medicare on your net business income. The IRS lets you deduct half of your self-employment tax as a business expense, which lowers your taxable income.
You still report your income and pay these taxes quarterly using estimated tax payments, or you can pay them when you file your annual return. Many self-employed people use tax software or work with a tax preparer to make sure they're calculating the right amount, since the math is more complex than a W-2 employee's withholding.
The extra Medicare tax on high earners
If your income exceeds $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately), you owe an additional 0.9% Medicare tax on the amount over the threshold. Your employer withholds this automatically if you're a W-2 employee and your wages cross the threshold.
Self-employed people and those with investment income need to watch this more carefully, because the extra tax applies to wages, self-employment income, and certain investment income combined. If you think you'll cross the threshold, talk to a tax preparer about whether you need to adjust your estimated payments.
Comparing your tax burden across income levels
| Annual Income | Social Security Tax | Medicare Tax | Total (Employee Share) |
|---|---|---|---|
| $50,000 | $3,100 | $725 | $3,825 |
| $100,000 | $6,200 | $1,450 | $7,650 |
| $168,600 (2024 wage base) | $10,453 | $2,445 | $12,898 |
| $200,000 | $10,453 | $2,900 + $900* | $14,253 |
*The $900 is the additional 0.9% Medicare tax on income over $200,000.
Why these taxes matter for your future benefits
The taxes you pay now directly fund the Social Security and Medicare benefits you'll receive later. Your Social Security benefit amount is based on your 35 highest-earning years, so the more you earn and pay into the system, the higher your benefit will be at retirement. There's a maximum benefit amount, but most people don't reach it.
Medicare may be able to access at age 65 doesn't depend on how much you paid in taxes — you're covered if you or your spouse paid Medicare tax for at least 10 years (40 quarters). But if you haven't paid enough, you may have to pay a higher premium for Part B coverage.
Frequently Asked Questions
What if I work for two employers in the same year?
You might pay Social Security tax on more than the wage base if your combined earnings from both jobs exceed $168,600. Each employer withholds based on what you earn from them alone, not your total income. You can claim the overpayment on your tax return when you file.
Do I pay these taxes on my entire paycheck?
Social Security and Medicare taxes are withheld from your gross pay before most other deductions. They explore to your wages before taxes, health insurance premiums, or 401(k) contributions are taken out. The only common deduction that comes before them is a pre-tax dependent care account.
Can I opt out of Social Security or Medicare tax?
No. These are mandatory payroll taxes for all W-2 employees and self-employed workers. The only exceptions are certain religious groups that have filed for exemption, and some government employees hired before specific dates who are covered by different pension systems.
Does the wage base ever go down?
The Social Security wage base has only gone up since it was introduced in 1935. It's tied to average wage growth, so it rises most years. In rare years when average wages fall, the base stays flat rather than decreasing.