The rate and the cap
Employees pay 6.2% of wages up to the Social Security wage base ($176,100 for 2025). Above that, Social Security tax stops entirely — which is why very high earners see FICA fall as a share of pay late in the year.
Employee versus self-employed
An employee pays 6.2%; the employer pays a matching 6.2% that never appears on the payslip. A self-employed person pays 12.4% because they are both parties — the reason 1099 income feels more heavily taxed.
Planning implications
- Two jobs: each employer withholds separately, so you can overpay and claim it back
- Above the cap, extra salary is cheaper for the employer too — relevant in comp negotiations
- S-corp owners: only reasonable salary is subject to this tax
- The wage base rises most years with average wages
Where it goes
Social Security tax funds retirement, disability and survivor benefits. The trust fund question is political; the calculation is not — 6.2% of covered wages, up to the cap.
Frequently Asked Questions
What is the 2025 wage base?
$176,100 — earnings above it are not subject to Social Security tax.
Do I pay on all income?
Only wages and self-employment income; investment income is not covered.
Can I get an overpayment back?
Yes — claim the excess on your return if multiple employers withheld above the cap.
Assumptions & disclaimer
Results are estimates for planning. Fee schedules, tax brackets and deduction limits change; confirm current figures with the marketplace, the IRS or a qualified accountant before making decisions. Nothing here is financial, tax or legal advice.
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