The FICA tax (Federal Insurance Contribution Act) is an employee payroll tax that funds Social Security benefits and Medicare health insurance. The tax is split between employers and employees with each party paying 7.65% (6.2% for Social Security and 1.45% for Medicare) of the employee’s gross earnings to FICA for a combined contribution of 15.3%.
 

There’s a limit on the amount of your earnings that’s taxed by Social Security (there is no limit for Medicare). Your maximum taxable earnings for 2024 is $167,700. This means your income up to $167,700 will be taxed at 6.2% for Social Security. Projections for 2025 have the maximum at $174,900 and $181,200 in 2026.