2015 Social Security and Medicare Tax Withholding Rates and Limits

For 2015, the maximum limit on earnings for withholding of Social Security (Old-Age, Survivors, and Disability Insur­ance) Tax is $118,500.00. The maximum limit is changed from last year. The Social Security Tax Rate remains at 6.2 percent. The resulting maximum Social Security Tax for 2015 is $7,347.00.

There is no limit on the amount of earnings subject to Medicare (Hospital Insurance) Tax. The Medicare Tax Rate applies to all taxable wages and remains at 1.45 percent with the exception of an “additional Medicare Tax” assessed against all taxable wages paid in excess of the applicable threshold (see Note). The FICA Tax Rate, which is the combined Social Security rate of 6.2 percent and the Medicare rate of 1.45 percent, remains 7.65 percent for 2015 (or 8.55 percent for taxable wages paid in excess of the applicable threshold).

The information in the following table shows the changes in Social Security and Medicare withholding limits from 2014 to 2015. The new limits are effective January 1, 2015.



2014 Limit

2015 Limit

Social Security Gross



Social Security Liability



Medicare Gross

No Limit

No Limit

Medicare Liability

No Limit

No Limit

Note: The Patient Protection and Affordable Care Act signed into law March 23, 2010, created the “additional Medicare Tax” that changes Medicare withholding computations effec­tive January 1, 2013. All wages, self-employment income, and other compensation that are subject to regular Medicare Tax and are paid in excess of the applicable threshold are sub­ject to the additional Medicare Tax. Employers are required to withhold the additional Medicare Tax at a 0.9 percent rate on wages and other compensation it pays to an employee in excess of $200,000 in a calendar year. There is no employer match for the additional Medicare Tax.