Social Security and Medicare income limits and tax rates
FICA tax is a combination of a Social Security tax and a Medicare tax. The Social Security tax is assessed on wages up to $160,200; the Medicare tax is assessed on all wages.
Self-employed individuals pay a self-employment tax which is the equivalent of FICA tax. For 2023, they will pay a 15.3% OASDI tax (the old age, survivors, and disability insurance tax) on the first $160,200 of self-employment income. A 2.9%* Medicare tax is imposed on all net self-employment income.
The earnings limit for retirees under full retirement age is $21,240. Social Security benefits will be reduced $1 for every $2 of earnings above this limit. There is no earnings limit for individuals at full retirement age. (Special rules apply in the first year of retirement.)
|Tax||Maximum Tax Rate||Maximum Wage Base||Maximum Tax|
|Medicare||1.45%*||No limit||No ceiling|
* A 0.9% Medicare surtax is assessed on all wages or self-employment income in excess of $200,000 for singles, $250,000 for joint returns, and $125,000 for those married filing separately.
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