Medicare Income Tax Rate 2024

Medicare Income Tax Rate 2024. The rate of social security tax on taxable wages is 6.2% each for the employer and employee. The center found that the top 0.1% of households paid an average effective federal tax rate of about 30.3% in 2020, including an average income tax rate of 24.3%.

You’re typically responsible for paying half of this amount (1.45%), and your employer is responsible for the other half. This is the amount you’ll see come out of your paycheck, and it’s matched with an additional 1.45% contribution.