FICA tax rates

FICA, or the Federal Insurance Contributions Act, refers to the payroll tax used to fund Social Security and Medicare in the United States. As of 2023, the FICA tax rate is 7.65% for employees, which comprises 6.2% for Social Security (up to a certain income limit) and 1.45% for Medicare (with no income limit). Employers also contribute an equivalent amount, totaling 15.3% for each employee. Self-employed individuals pay both portions, making their total FICA tax 15.3%. This tax helps ensure benefits for retirees and those with disabilities, as well as funding for healthcare for the elderly.