Social Security Tax Rate

The Social Security tax rate is a fixed amount paid by employees and employers. If you’re an employee though, you are only responsible for paying half of the total Social Security tax that is calculated on your wages.

The Social Security tax rate is 12.4 percent in total where you and your employer pay 6.2 percent each.

For example, if you earned $100,000 in wages in 2024, $6,200 of it will be paid as part of Social Security tax and your employer will also pay the same amount. We can say that the Social Security tax rate for employees is 6.2 percent.

Social Security Tax Rate for Self Employed

While employees pay 6.2 percent in Social Security tax and the employers match it, self-employed individuals pay both portions for themselves. If you’re a business owner, you will pay 12.4 percent Social Security tax.

While the 12.4 percent seems understandable, don’t forget that employers are also responsible for paying the same Social Security tax for their employees. If an employee paid $6,200 in Social Security taxes, the employer will pay the same while also paying the 12.4 percent.

Social Security Tax Limit

While the 6.2 percent on your wages and earnings may seem quite high and never-ending, there is actually a limit. Social Security tax only applies to $142,800 of the earnings. That said, only the earnings up to $142,800 are subject to Social Security tax. The earnings that fall over it aren’t subject to it.

Paying Social Security tax is important as it funds the social welfare benefits and how long you pay this tax will grant you premium-free Medicare Part A and other benefits.