Finance Maxxing
FICA & Payroll Taxes
Social Security Tax
6.2% on wages up to the annual wage base.
Social Security (OASDI) tax is 6.2% of wages up to the wage base limit, with an equal employer match.
Wage Base History
| Year | Wage Base | Max Employee Tax |
|---|---|---|
| 2025 | $176,100 | $10,918 |
| 2024 | $168,600 | $10,453 |
| 2023 | $160,200 | $9,932 |
Once your wages exceed the cap, no additional Social Security tax applies for the rest of the year. This creates a regressive effect — someone earning $500K pays the same Social Security tax as someone earning $176,100.
Self-employed individuals pay both halves (12.4%) but can deduct the employer-equivalent portion.