783 / What are the Social Security tax rates?
Self-employment tax: 15.30 percent (12.40 percent OASDI and 2.90 percent hospital insurance). In 2024, the OASDI tax is imposed on up to $176,100 of self-employment income for a maximum tax of $21,836.40. The hospital insurance tax is imposed on all of a taxpayer’s self-employment income. However, an above-the-line deduction is permitted for one-half of self-employment taxes paid by an individual and attributable to a trade or business carried on by the individual (not as an employee) (see Q 8051).2 For compensation received in taxable years beginning after 2012, the hospital insurance tax is increased by 0.9 percent for wages above $250,000 for married taxpayers filing jointly and surviving spouses, $125,000 for married taxpayers filing separate, and $200,000 for single taxpayers and heads of households. The dollar thresholds for the 0.9 percent tax on the self-employment income of high wage earners are reduced (but not below zero) by wages subject to the FICA tax. The deduction for one-half of self-employment tax is not available for the additional 0.9 percent tax.
FICA: 7.65 percent (6.20 percent OASDI and 1.45 percent hospital insurance) for the employer and 7.65 percent (6.20 percent OASDI and 1.45 percent hospital insurance) for the employee.
The hospital insurance tax is imposed on all of a taxpayer’s wages.3 For compensation received in taxable years beginning after 2012, the employee’s portion of the hospital insurance tax is increased to 2.35 percent for wages above $250,000 for married taxpayers filing jointly (tax applies to combined wages of taxpayer and taxpayer’s spouse) and surviving spouses, $125,000 for married taxpayers filing separately, and $200,000 for single taxpayers and heads of households.