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Social Security, Medicare, Self-Employment Tax Rates and Wage Base

Social Security Tax Rate:

  • 2021 Combined employer/employee rate: 12.4%.
    • Employer's portion: 6.2%
    • Employee's portion: 6.2% .

Social Security Wage Base

  • 2021 wage base: $142,800
  • 2020 wage base: $137,700
  • 2019 wage base: $132,900
  • 2018 wage base: $128,400
  • 2017 wage base: $127,200
  • 2016 and 2015 wage base: $118,500 (remained the same as there was no cost of living adjustment - COLA).

Medicare Tax Rate:

  • 2021 Total Medicare Tax Rate: 2.9%
    • Employer portion: 1.45%
    • Employee portion: 1.45%

2021 additional 0.9% Medicare Tax for High Earners:

A 0.9% Additional Medicare Tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation that exceed the following threshold amounts based on filing status:

  • $250,000 for married filing jointly;
  • $125,000 for married filing separately; and
  • $200,000 for all other taxpayers.

This additional tax is used to help fund the Affordable Care Act tax provisions, including the premium tax credit.

Self-employment Tax Rate:

  • 2021 Self-employment tax rate of:15.3% has remained the same for many years and equals thel Social Security rate of 12.4% plus the total Medicare rate of 2.9%.
  • Note that, one-half of the self-employment tax is deductible on Form 1040 as an above-the-line deduction.
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