Many Americans pay Social Security taxes through payroll deductions every year, but few understand whether those taxes can be deducted on their federal income tax return.
In 2025, the rules are clear: Social Security taxes are generally not tax-deductible for employees, though there are exceptions for the self-employed.
Can Employees Deduct Social Security Taxes From Their Income?
If you’re a regular employee, the Social Security tax withheld from your paycheck cannot be deducted on your federal income tax return.
Employers withhold 6.2% for Social Security and 1.45% for Medicare under the Federal Insurance Contributions Act (FICA).
These contributions fund retirement, disability, and survivor benefits under the Social Security program.
Because this amount is considered a personal tax contribution, not a deductible expense, the IRS does not allow employees to claim it as a deduction, even if you itemize deductions on Schedule A.
In other words, you cannot reduce your taxable income by the amount of Social Security tax withheld.
Are Social Security Taxes Deductible for Self-Employed People?
Yes, but only partially.
Self-employed workers pay both the employer and employee portions of FICA taxes through the Self-Employment Contributions Act (SECA).
This means you pay 12.4% for Social Security and 2.9% for Medicare on your net earnings, for a total of 15.3%.
However, the IRS allows self-employed individuals to deduct half of their SECA tax (7.65%) as an adjustment to income on their federal tax return.
This deduction appears on Schedule 1 (Form 1040) under “Adjustments to Income.”
This deduction doesn’t reduce your Social Security benefits; it simply offsets part of your tax liability to recognize that you are both employer and employee.
What Is the Maximum Amount of Social Security Tax You Can Pay in 2025?
In 2025, the Social Security wage base limit, the maximum amount of income subject to the 6.2% Social Security tax, is $176,400, according to the Social Security Administration.
This means:
- Employees and employers each pay 6.2% on the first $176,400 of wages.
- Any income above that limit is not subject to Social Security tax.
- The Medicare tax (1.45%) continues on all income, with an additional 0.9% Medicare surtax for individuals earning over $200,000 ($250,000 for married couples filing jointly).
If you’re self-employed, you pay 12.4% Social Security tax on your first $176,400 of net earnings, and 2.9% Medicare tax on all income.
Can You Deduct Social Security Benefits You Receive?
No. The Social Security benefits you receive in retirement or due to disability are not deductible on your tax return.
Instead, a portion of those benefits may be taxable depending on your total income.
The IRS calculates this based on “combined income”, which includes:
- Your adjusted gross income (AGI),
- Non-taxable interest (such as municipal bond interest), and
- Half of your Social Security benefits.
If your combined income exceeds certain thresholds, part of your benefits becomes taxable:
- Single filers: Up to 50% taxable if income is $25,000–$34,000; up to 85% if above $34,000.
- Married filing jointly: Up to 50% taxable if income is $32,000–$44,000; up to 85% if above $44,000.
So while you can’t deduct Social Security taxes, the amount you receive may still affect your tax bill.
Are Employer Social Security Contributions Deductible?
Yes, but only for businesses.
Employers can deduct their share of FICA taxes (6.2% for Social Security and 1.45% for Medicare) as a business expense on their corporate or business tax returns.
This deduction reduces taxable business income, just like wages, rent, or other operating costs.
For employees, however, the employer’s share doesn’t appear on personal tax documents and cannot be claimed in any way.
What About State Income Taxes on Social Security?
Most states do not tax Social Security benefits, but a few still do.
As of 2025, only 10 states have some form of taxation on Social Security income: Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
Each of these states has its own exemptions and income thresholds. For example:
- Colorado exempts up to $24,000 of benefits for those over 65.
- Minnesota applies partial credits based on income.
- New Mexico phases out taxes for middle- and lower-income retirees.
No state allows you to deduct Social Security payroll taxes from your state income taxes.
How to Confirm How Much You Paid in Social Security Taxes
You can check exactly how much Social Security tax you paid for the year using your Form W-2 or Schedule SE (Form 1040) if you’re self-employed.
- Box 4 of Form W-2 shows “Social Security tax withheld.”
- Box 6 shows “Medicare tax withheld.”
- Self-employed taxpayers report these taxes on Schedule SE, and the deduction for half of the SECA tax appears automatically on Schedule 1.
You can also verify your lifetime contributions and earnings on the SSA website by signing into your my Social Security account at SSA.gov/myaccount.
