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Social Security/Medicare Contribution Limits

 

Employment earnings and net self-employment earnings subject to Social Security taxes:

 

2017

2016

2015

2014

2013

Combined annual earnings ceiling

$127,200

$118,500

$118,500

$117,000

$113,700

Rate (employee)(1)

6.2%

6.2%

6.2%

6.2%

4.2%

Rate (self-employed)

12.4%

12.4%

12.4%

12.4%

10.4%


 

Employment earnings and net self-employment earnings subject to Medicare taxes:

 

2017

2016

2015

2014

2013

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