In 2025, the Social Security payroll tax rate is 12.4%, which consists of 6.2% deducted from your paycheck and an additional 6.2% matched by your employer. For instance, if your taxable payroll income is $100,000 in 2025, the total Social Security payroll tax would be $12,400, split equally between the employee and employer, with each contributing $6,200. It’s important to note that this amount does not include the additional 2.9% total Medicare tax.
Now, let’s examine the scenario where your income is $176,100 in 2025. In this case, your Social Security payroll tax would amount to $10,918.20, with your employer matching this amount as well. Therefore, the total contribution to Social Security would be $21,836.40.
Finally, if you earn a million dollars in 2025, you will still pay a maximum of $10,918.20 in Social Security payroll taxes, which represents 1.1% of your income. Your employer will also contribute the same amount of $10,918.20, resulting in a total Social Security payroll tax contribution of 2.2% rate.
If you believe this system is unfair and have concerns about the solvency of Social Security, consider informing your representatives in Congress and the President.