What is the Social Security Tax Rate?

The Social Security tax rate is 12.4 % of wage earnings.  Employers pay half and employees pay half.  If you are self-employed, then well guess what you pay 100%.

There is a limit to the social security tax, and if you make more than a certain amount per year, then you don’t pay any extra. For 2011, that amount is $106,800.  For 2012, that will be $110,100.

Was There a Social Security Tax Rate Cut for 2011?

Good news for 2011: there was a special social security tax rate reduction just for this year.  The amount paid by the employee, which has traditionally been 6.2%, was reduced to 4.2%.  Employer portion remains at 6.2%, however.

Social Security is also known as Old-Age, Survivors, and Disability Insurance (OASDI).  Everyone who earns wages pays into it.