Social Security / Medicare Contribution Limits
Employment earnings and net self-employment earnings subject to Social Security taxes:
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Combined annual earnings ceiling | $142,800 | $137,700 | $132,900 | $128,400 | $127,200 |
| Rate (employee)(1) | 6.2% | 6.2% | 6.2% | 6.2% | 6.2% |
| Rate (self-employed) | 12.4% | 12.4% | 12.4% | 12.4% | 12.4% |
Employment earnings and net self-employment earnings subject to Medicare taxes:
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Combined annual earnings ceiling | unlimited* | unlimited* | unlimited* | unlimited* | unlimited* |
| Rate (employee)(2) | 1.45%-2.35% | 1.45%-2.35% | 1.45%-2.35% | 1.45%-2.35% | 1.45%-2.35% |
| Rate (self-employed) | 2.9%-3.8% | 2.9%-3.8% | 2.9%-3.8% | 2.9%-3.8% | 2.9%-3.8% |
(1) Amounts deducted from employee are matched by the employer
(2) Only 1.45% Medicare tax amounts deducted from employee are matched by the employer
* For employee: 1.45% Medicare tax on the first $200,000 of wages ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return), plus 2.35% Medicare tax (regular 1.45% Medicare tax + 0.9% additional Medicare tax) on all wages in excess of $200,000 (250,000 for joint returns; $125,000 for married taxpayers filing a separate return). For self-employed: 2.9% Medicare tax on the first $200,000 of self-employment income ($250,000 of combined self-employment income on a joint return, $125,000 on a separate return), plus 3.8% (2.9% regular Medicare tax + 0.9% additional Medicare tax) on all self-employment income in excess of $200,000 $250,000 of combined self-employment income on a joint return, $125,000 for married taxpayers filing a separate return).
FICA (Federal Insurance Contributions Act) is actually made up of two taxes:
- OASDI (Old Age, Survivors, and Disability Insurance), commonly known as Social Security tax
- HI (Hospital Insurance), commonly known as Medicare tax