If you are still working, you may wonder when these taxes stop. Many people think taxes end at age 65. Others think they stop when you start Social Security. You keep paying Medicare and Social Security taxes as long as you work and earn income. Here’s what that means for you.
If you work in the United States, you pay Medicare and Social Security taxes. These taxes are deducted from every paycheck. You might see them listed as FICA on your pay stub.
FICA stands for the Federal Insurance Contributions Act (FICA). This federal payroll tax applies to most employed individuals in the United States. These tax payments fund your future Medicare and Social Security benefits. Social Security also provides survivors’ and disability insurance, protection for your family if you die or become unable to work. Think of it as paying into a system that will help you later in life.
When you’re self-employed, these taxes are called the Self-Employed Contributions Act (SECA). Under SECA, self-employed individuals are required to pay both the employee and employer share of these payroll taxes.
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According to the IRS, the FICA tax rate is 15.3% of your earned income.
This total includes:
If you work for an employer, you pay half, and the employer pays the other half. That means 6.2% for Social Security and 1.45% for Medicare are withheld from your paycheck.
If you are self-employed, you pay the full 15.3% under the Self-Employed Contributions Act (SECA).
According to the IRS, the Social Security tax applies only to income up to $184,500 in 2026. Once you reach that limit during the calendar year, you are no longer subject to Social Security tax for the rest of that year.
The Medicare tax works differently. The Medicare tax applies to all earned income and has no wage limit. According to the IRS, higher earners may also owe an Additional Medicare Tax. This is an extra 0.9% on income above $200,000 for single filers or $250,000 for married couples filing jointly.
When you pay FICA taxes, you are funding two important programs: Social Security and Medicare. These programs provide income and health coverage later in life.
Although the taxes are withheld from the same paycheck, they serve different purposes.
Social Security taxes fund three types of benefits: old-age, survivors, and disability insurance. The Social Security Administration tracks your earnings throughout your working years. These records determine what you, or your family, may receive if you retire, become disabled, or pass away.
To qualify for retirement benefits, you generally need 40 credits. That equals about 10 years of work. Your monthly benefit is based on your 35 highest-earning years.
You can begin receiving Social Security as early as age 62. However, your full retirement age depends on your birth year. For most people today, it falls between 66 and 67. The Social Security Administration offers a retirement age calculator on its website to help you find your exact full retirement age.
Medicare taxes help fund your hospital coverage at age 65. If you or your spouse paid Medicare taxes for at least 10 years, you usually qualify for Medicare Part A at a $0 premium.
Medicare Part A, also called hospital insurance, covers inpatient hospital care. It covers inpatient hospital stays, skilled nursing facility care, hospice, and limited home health services.
While Social Security provides a monthly income, Medicare helps pay for major health care costs in retirement.
If you’re working past 65, remember that continuing to pay Medicare and Social Security taxes can actually increase your future Social Security benefits by replacing lower-earning years in your calculation.
Medicare and Social Security taxes stop only when you stop working and earning income.
As long as you receive wages from a job or earn money through self-employment, you will continue paying these taxes. Your age does not matter. It also does not matter whether you already receive Medicare or Social Security benefits.
Even if you are past your full retirement age, FICA taxes still apply to earned income. These taxes are required by law and continue for as long as you work.
In practical terms, this means:
Working past retirement age can actually increase your Social Security benefits. Every year you work adds to your earnings record. If you earn more than in previous years, it may replace a lower-earning year in your calculation.
Medicare and Social Security taxes continue for as long as you work and earn income; there’s no age cutoff. Whether you’re 65, 70, or beyond, FICA taxes still apply to your paychecks and self-employment earnings.
The good news? Every year you continue working can strengthen your Social Security benefit by adding higher earnings to your record. These taxes fund the Medicare hospital coverage and Social Security retirement income you’ll rely on in your later years. Understanding how FICA works helps you plan better for retirement and avoid surprises on your pay stub.
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No. Medicare taxes are mandatory for all workers, regardless of whether you’re already enrolled in Medicare. These taxes fund the Medicare program for current and future beneficiaries. There is no refund or exemption based on age or enrollment status.
The Additional Medicare Tax is an extra 0.9% tax on earned income above certain thresholds: $200,000 for single filers or $250,000 for married couples filing jointly. Unlike regular Medicare tax, your employer does not match this additional amount; you pay the full 0.9% on income above the threshold.
No. If you work and earn wages or self-employment income, you must pay Social Security tax up to the annual wage base limit, even if you’re already collecting Social Security benefits. However, additional years of work may increase your monthly benefit amount.
No. FICA taxes only apply to earned income from wages or self-employment. Withdrawals from retirement accounts, pensions, investment income, and interest are not subject to Social Security or Medicare taxes.
Medicare taxes (FICA) are payroll deductions that fund the Medicare program while you’re working. Medicare premiums are what you pay monthly for your Medicare coverage once you enroll at age 65. Even if you pay $0 for Part A because you worked 10 or more years, you’ll still pay a premium for Part B coverage, and you’ll continue paying FICA taxes if you keep working.
Read more by David Luna
I am a Spanish-speaking Arizona Life and Health Insurance Licensed Agent and have been helping people with Medicare since 2005. I am a Marine Corps Veteran & former police officer. I enjoy watching football and basketball but hold family time in the highest regard.
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