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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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