![]() But if you’re a high earner, there’s a limit as to how much tax you’ll pay each year. ![]() This tax includes 12.4 percent for Social Security and another 2.9 percent for Medicare. Half of this is paid by you, and the other half comes from your employer. If you’re employed, your earnings are subject to a 15.3 percent payroll tax. However, there is an additional Medicare tax that will be based on your household income. ![]() If you’re married filing jointly, the Social Security cap will be applied to each salary separately. Payroll tax will be applied to every paycheck you earn throughout the year, and at tax time the Internal Revenue Service will make sure you paid in enough. Social Security is designed to be an individual thing, whether you file jointly or separately. If you’re married filing jointly, you’ll be responsible for an additional 0.9 percent in Medicare tax for the amount you both earned over $250,000. ![]() For 2019, you’ll only pay Social Security tax on the first $132,900 you earn.
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