The maximum taxable income for Social Security for 2021 is $142,800. 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.
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.
Updated December 28, 2020
Find the answers to the most common Social Security questions such as when to claim, how to maximize your retirement benefits and more.