Staying Fit
The maximum taxable income for Social Security for 2023 is $160,200. If you make more than that from work, the excess won't be subject to FICA, the Federal Insurance Contributions Act, under which 6.2 percent of gross pay is withheld from your paycheck to fund Social Security.
However, there is no maximum income when it comes to Medicare. You pay the Medicare portion of FICA, 1.45 percent of wages, on every dollar you earn from work. Your employer matches both the Social Security and Medicare contributions.
Join AARP for $12 for your first year when you sign up for Automatic Renewal. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP The Magazine.
Keep in mind
FICA is not withheld from self-employed people's income. They pay their share of Social Security and Medicare contributions through a separate tax on proceeds from their business.
More Social Security Answers
Do I have to pay FICA taxes on my earnings if I also collect Social Security?
Do you have to withhold Social Security taxes from a household worker's earnings?