What is the Social Security tax rate?

The Social Security tax rate in Washington is 12.4%. This tax rate is applicable to the first $128,400 of income that an individual earns in a year (2020). This rate is split between the employee and the employer, each paying 6.2%. Any money earned over the $128,400 income limit is not subject to the Social Security tax. The Social Security tax is used to fund the Social Security Administration’s retirement and disability benefits for citizens and is generally expected to be paid by both the employee and the employer. The employee’s share of the Social Security tax is taken out of their paycheck before they receive it, while the employer’s share is paid directly to the Social Security Administration. In addition, anyone who is self-employed must pay the full 12.4% Social Security tax on the first $128,400 of income they earn in Washington. Any income earned over the $128,400 limit is not subject to the Social Security tax. As of 2020, Washington is one of the few states that follows the Social Security tax rate of 12.4%. Other states may have slightly different rates or even have the option to opt out of the tax altogether. Knowing the tax rate in your state is important for accurately reporting your income and paying the correct amount of taxes.

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What is the Social Security tax rate?

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