Social Security &
Medicare
Tax Rates
Social Security's Old-Age, Survivors,
and Disability Insurance (OASDI) program and Medicare's Hospital
Insurance (HI) program are financed primarily by employment taxes. Tax
rates are set by law (see sections 1401, 3101, and 3111 of the Internal
Revenue Code) and apply to earnings up to a maximum amount for OASDI.
| Calendar
year |
Tax rates as a percent of taxable
earnings |
| Rate for employees and employers,
each |
Rate for self-employed persons |
| OASDI |
HI |
Total |
OASDI |
HI |
Total |
| 1937-49 |
1.000 |
-- |
1.000 |
-- |
-- |
-- |
| 1950 |
1.500 |
-- |
1.500 |
-- |
-- |
-- |
| 1951-53 |
1.500 |
-- |
1.500 |
2.250 |
-- |
2.250 |
| 1954-56 |
2.000 |
-- |
2.000 |
3.000 |
-- |
3.000 |
| 1957-58 |
2.250 |
-- |
2.250 |
3.375 |
-- |
3.375 |
| 1959 |
2.500 |
-- |
2.500 |
3.750 |
-- |
3.750 |
| 1960-61 |
3.000 |
-- |
3.000 |
4.500 |
-- |
4.500 |
| 1962 |
3.125 |
-- |
3.125 |
4.700 |
-- |
4.700 |
| 1963-65 |
3.625 |
-- |
3.625 |
5.400 |
-- |
5.400 |
| 1966 |
3.850 |
0.350 |
4.200 |
5.800 |
0.350 |
6.150 |
| 1967 |
3.900 |
0.500 |
4.400 |
5.900 |
0.500 |
6.400 |
| 1968 |
3.800 |
0.600 |
4.400 |
5.800 |
0.600 |
6.400 |
| 1969-70 |
4.200 |
0.600 |
4.800 |
6.300 |
0.600 |
6.900 |
| 1971-72 |
4.600 |
0.600 |
5.200 |
6.900 |
0.600 |
7.500 |
| 1973 |
4.850 |
1.000 |
5.850 |
7.000 |
1.000 |
8.000 |
| 1974-77 |
4.950 |
0.900 |
5.850 |
7.000 |
0.900 |
7.900 |
| 1978 |
5.050 |
1.000 |
6.050 |
7.100 |
1.000 |
8.100 |
| 1979-80 |
5.080 |
1.050 |
6.130 |
7.050 |
1.050 |
8.100 |
| 1981 |
5.350 |
1.300 |
6.650 |
8.000 |
1.300 |
9.300 |
| 1982-83 |
5.400 |
1.300 |
6.700 |
8.050 |
1.300 |
9.350 |
| 1984 a |
5.700 |
1.300 |
7.000 |
11.400 |
2.600 |
14.000 |
| 1985 a |
5.700 |
1.350 |
7.050 |
11.400 |
2.700 |
14.100 |
| 1986-87 a |
5.700 |
1.450 |
7.150 |
11.400 |
2.900 |
14.300 |
| 1988-89 a |
6.060 |
1.450 |
7.510 |
12.120 |
2.900 |
15.020 |
| 1990 and later b |
6.200 |
1.450 |
7.650 |
12.400 |
2.900 |
15.300
|
a
In 1984 only, an immediate credit of 0.3 percent of taxable wages was
allowed against the OASDI taxes paid by employees, resulting in an
effective employee tax rate of 5.4 percent. The OASDI trust funds,
however, received general revenue equivalent to 0.3 percent of taxable
wages for 1984. Similar credits of 2.7 percent, 2.3 percent, and 2.0
percent were allowed against the combined OASDI and HI taxes on net
earnings from self-employment in 1984, 1985, and 1986-89, respectively.
b Beginning in 2013, P. L.
111-148 assesses an additional HI tax of 0.9 percent on earned income
exceeding $200,000 for individuals and $250,000 for married couples
filing jointly. This additional HI tax rate is not reflected in
the tax rates shown in the table.
Source: http://www.ssa.gov/OACT/ProgData/taxRates.html
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