When you look at your paycheck, two line items you’ll almost always see are Social Security and Medicare taxes. These are part of the FICA tax system (Federal Insurance Contributions Act). Knowing how to calculate them makes it easier to understand your true take-home pay.
Quick Answer
- Social Security deduction (2025): 6.2% of gross wages, up to the wage base limit of $176,100.
- Medicare deduction (2025): 1.45% of gross wages, with no cap.
- Additional Medicare Tax: 0.9% on wages above $200,000 (single filers) or $250,000 (married filing jointly).
- Total FICA rate for employees: 7.65% of gross wages.
Step-by-Step: Calculating Deductions
1. Identify your gross pay
Start with your wages before any taxes or benefits are withheld.
2. Apply Social Security
Multiply gross wages by 6.2% until your year-to-date income reaches the annual wage base.
3. Apply Medicare
Multiply gross wages by 1.45%. If your earnings are above the threshold, add the 0.9% Additional Medicare Tax to the amount over the limit.
4. Total FICA deduction
Add the Social Security and Medicare amounts.
Example Calculation
Imagine your biweekly paycheck is $2,000:
- Social Security: $2,000 × 0.062 = $124
- Medicare: $2,000 × 0.0145 = $29
- Total FICA: $124 + $29 = $153 deducted
👉 Want to see your actual take-home pay? Try the federal tax updates 2025 calculator or explore the gross-to-net paycheck calculator for personalized results.
Key Facts About These Deductions
- Both employer and employee contribute the same percentage: 6.2% for Social Security and 1.45% for Medicare.
- Self-employed workers pay both sides (15.3%) under SECA but can deduct half when filing taxes.
- 401(k) contributions and health insurance premiums do not reduce FICA taxes—they apply only to federal income tax.
- Once your wages exceed $176,100 in 2025, Social Security stops, but Medicare continues.
Why These Deductions Matter
Social Security contributions help fund retirement, disability, and survivor benefits. Medicare contributions go toward hospital insurance (Part A). These programs are mandatory, and your contributions directly affect future eligibility.
FAQs: Social Security & Medicare Deductions
- What percentage of my paycheck goes to Social Security and Medicare?
For most employees, 7.65% total. - Do bonuses and overtime count?
Yes, all taxable wages are subject to FICA. - Does 401(k) reduce these taxes?
No. FICA applies before retirement contributions. - What if I work multiple jobs?
Each employer withholds until you hit the Social Security wage base limit. - How do self-employed people calculate these taxes?
Multiply net earnings by 15.3%, then deduct half when filing your tax return.
Bettye is the creator of CityPaycheckCalculator.com, a resource designed to help individuals quickly and accurately estimate their take-home pay across U.S. cities. With a strong focus on clarity, accuracy, and user experience, Bettye provides reliable paycheck calculators and helpful insights to support smarter financial decisions. Her mission is to make complex payroll and tax information simple and accessible for everyone.