The Employee Social Security and Medicare Tax Rate Rose From 1% in 1937 to 7.65% Since 1990
The Fact
The Social Security Administration's rate table shows the employee tax rate for Social Security (OASDI) and Medicare (HI) at 1.0% in 1937, 1.5% in 1950, 3.0% in 1960, 4.8% in 1970, 6.13% in 1980, and 7.65% from 1990 on. Employers pay the same rate on top. An additional 0.9% Medicare tax applies to earnings above certain thresholds since 2013.
What This Means
The payroll tax taken straight off the top of a paycheck is more than seven times what it was when Social Security began.
Why It Matters
This tax comes out of the first dollar you earn, before any income tax deductions.
Sources
Social Security Administration, Office of the Chief Actuary. “Social Security & Medicare Tax Rates.” https://www.ssa.gov/oact/progdata/taxRates.html