2016 Social Security Taxable Earnings and Rates

 and Medicare Rates

 

The Federal Insurance Contributions Act (FICA) consists of two separate parts. One is the Social Security (OASDI) and the other is Medicare (HI). Different rates apply to each of these for both employees and self-employed persons.

2016 Social Security (OASDI) Taxable Earnings and Rates
If you are: The Maximum Taxable Earnings is: Tax Rate
Employee First $118,500 of Wages 6.2%
Self-Employed First $118,500 of Net Profit from Trade or Business 12.4%
2016 Medicare (HI) Taxable Earnings and Rates
If you are: The Maximum Taxable Earnings is: Tax Rate
Employee UNLIMITED 1.45%*
Self-Employed UNLIMITED 2.9%*

*You are liable for Additional Medicare Tax of 0.9% if your wages, compensation, or self-employment income (together with that of your spouse if filing a joint return) exceed the threshold amount for your filing status shown in the table below:

Filing Status Threshold Amount
Married Filing Jointly $250,000
Married Filing Separately $125,000
Single $200,000
Head of Household $200,000
Qualifying Widow(er) with Dependent Child $200,000

For other 2016 Social Security and Medicare changes such as quarter of coverage, retirement earnings test exempt amounts, SSI payments, and COLA amounts, click here.