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OASDI Tax: What It Is and Who Pays It
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do not influence our editors’ opinions or ratingsOASDI Tax: What It Is and Who Pays It
The OASDI tax is one of two FICA payroll taxes that go toward Social Security and Medicare.
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4 years of experience Expertise Personal finance retirementJune Sham is a lead writer on NerdWallet’s investing and taxes team covering retirement and personal finance. She is a licensed insurance producer, and previously was an insurance writer for Bankrate specializing in home, auto and life insurance. She earned her Bachelor of Arts in creative writing at the University of California, Riverside.
June Sham is a lead writer on NerdWallet’s investing and taxes team covering retirement and personal finance. She is a licensed insurance producer, and previously was an insurance writer for Bankrate specializing in home, auto and life insurance. She earned her Bachelor of Arts in creative writing at the University of California, Riverside. Lead Writer + more + more
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Expertise Taxes InvestingSabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York.
Sabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York. Published in Editor & Content Strategist + more + moreAre you curious about those taxes on your paycheck and wondering what they’re for? One of them is the OASDI tax, which, for some workers, might be a significant chunk of their pay.
Are you curious about those taxes on your paycheck and wondering what they’re for? One of them is the OASDI tax, which, for some workers, might be a significant chunk of their pay.What is OASDI tax?
What is OASDI tax?Also known as Social Security, the OASDI (Old-Age, Survivors, and Disability Insurance) tax is one of two taxes that make up the Federal Insurance and Contributions Act (FICA). The other is a Medicare tax.
Also known as Social Security, the OASDI (Old-Age, Survivors, and Disability Insurance) tax is one of two taxes that make up the Federal Insurance and Contributions Act (FICA). The other is a Medicare tax .OASDI tax provides financial support to those who have lost income due to retirement, disability or death.
OASDI tax provides financial support to those who have lost income due to retirement, disability or death.The OASDI tax rate is 6.2% for employees and 12.4% for self-employed people, up to a certain income limit. Collectively, OASDI and Medicare taxes amount to 15.3%.
The OASDI tax rate is 6.2% for employees and 12.4% for self-employed people, up to a certain income limit. Collectively, OASDI and Medicare taxes amount to 15.3%.» Learn more: How FICA taxes work on your paycheck
» Learn more: » Learn more: How FICA taxes work on your paycheckHow does OASDI tax work?
How does OASDI tax work?If you’re an employee, the 12.4% OASDI tax is split evenly between you and your employer. This means that 6.2% is automatically deducted from your paycheck, and your employer pays the other 6.2%. It’s considered an additional expense for your employer and won’t be further deducted from your pay.
If you’re an employee, the 12.4% OASDI tax is split evenly between you and your employer. This means that 6.2% is automatically deducted from your paycheck, and your employer pays the other 6.2%. It’s considered an additional expense for your employer and won’t be further deducted from your pay.» MORE: How other types of withholding taxes are calculated
» MORE: » MORE: How other types of withholding taxes are calculated AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
OASDI tax for self-employed people
OASDI tax for self-employed peopleIf you’re self-employed, you’ll pay both the employee and employer portions of the OASDI tax. That means you’re responsible for the full 12.4% and will have to calculate it yourself (or with the help of a tax pro). OASDI taxes can be paid as often as monthly but are due quarterly. Paying taxes late could result in a bigger tax bill, along with penalties and interest.
If you’re self-employed, you’ll pay both the employee and employer portions of the OASDI tax. That means you’re responsible for the full 12.4% and will have to calculate it yourself (or with the help of a tax pro ). OASDI taxes can be paid as often as monthly but are due quarterly. Paying taxes late could result in a bigger tax bill, along with penalties and interest.While it’s a little extra work, there’s some good news for entrepreneurs: You’re able to deduct half the OASDI tax paid on your annual tax return. Other options, such as forming an S-corporation, could also help lower your OASDI tax.
While it’s a little extra work, there’s some good news for entrepreneurs: You’re able to deduct half the OASDI tax paid on your annual tax return . Other options, such as forming an S-corporation, could also help lower your OASDI tax.» MORE: Other self-employment tax deductions
» MORE: » MORE: Other self-employment tax deductionsOASDI limit 2026
OASDI limit 2026The OASDI limit for 2026 is $184,500, an increase of $8,400 from 2025. This is also called the taxable maximum, meaning that any income above this limit is not subject to OASDI taxes.
The OASDI limit for 2026 is $184,500, an increase of $8,400 from 2025. This is also called the taxable maximum, meaning that any income above this limit is not subject to OASDI taxes.As a result, employees will contribute a maximum of $11,439 to Social Security, while self-employed people will contribute a maximum of $22,878
As a result, employees will contribute a maximum of $11,439 to Social Security, while self-employed people will contribute a maximum of $22,878 Social Security Administration. Contribution and Benefit Base. Accessed Jan 16, 2026. .Is OASDI tax mandatory?
Is OASDI tax mandatory?The OASDI tax is mandatory for most people, but there are exceptions. Any income above the taxable maximum is not subject to the Social Security tax. Those who are self-employed and make less than $400 per year are also exempt
The OASDI tax is mandatory for most people, but there are exceptions. Any income above the taxable maximum is not subject to the Social Security tax. Those who are self-employed and make less than $400 per year are also exempt Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes). Accessed Jan 16, 2026. .Local and state government employees are also exempt if they’re only covered by their state or local pension plan. Certain nonimmigrants and nonresidents, depending on the type of visa held, are also granted exemptions. This includes foreign students, researchers and academics at universities, as well as foreign government employees working in the U.S.
Local and state government employees are also exempt if they’re only covered by their state or local pension plan. Certain nonimmigrants and nonresidents, depending on the type of visa held, are also granted exemptions. This includes foreign students, researchers and academics at universities, as well as foreign government employees working in the U.S.Certain religious groups are exempt from Social Security and Medicare taxes, but individuals need to file Form 4029 and receive approval from the IRS. Doing this also waives their right to benefits in the future
Certain religious groups are exempt from Social Security and Medicare taxes, but individuals need to file Form 4029 and receive approval from the IRS. Doing this also waives their right to benefits in the future Internal Revenue Service. Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits. Accessed Jan 16, 2026. .» Dive deeper: What does it mean to be tax-exempt?
» Dive deeper: » Dive deeper: What does it mean to be tax-exempt? AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
Frequently asked questionsYes. OASDI is commonly called Social Security, so the Social Security tax also refers to the OASDI tax.
Yes. OASDI is commonly called Social Security, so the Social Security tax also refers to the OASDI tax.Maybe. This could happen under certain circumstances, such as if you work two jobs and the combined income is above the annual taxable maximum. In this scenario, both of your employers may have withheld too much of your pay for Social Security tax.
Maybe. This could happen under certain circumstances, such as if you work two jobs and the combined income is above the annual taxable maximum. In this scenario, both of your employers may have withheld too much of your pay for Social Security tax.To correct this, you may be able to claim the excess OASDI tax on your income tax return to receive a refund.
To correct this, you may be able to claim the excess OASDI tax on your income tax return to receive a refund.Yes. OASDI is commonly called Social Security, so the Social Security tax also refers to the OASDI tax.
Maybe. This could happen under certain circumstances, such as if you work two jobs and the combined income is above the annual taxable maximum. In this scenario, both of your employers may have withheld too much of your pay for Social Security tax.
To correct this, you may be able to claim the excess OASDI tax on your income tax return to receive a refund.
Helpful resources
Helpful resources How Federal Tax Brackets and Rates Work Capital Gains Tax: Long and Short-Term Rates for 2025-2026 How to Fill Out Your W-4 Form and When to Adjust It More like this Taxes 2026 Tax Brackets and Federal Income Tax Rates The IRS adjusts the federal tax brackets annually to keep pace with inflation. The 2026 tax brackets apply to taxes filed in 2027. Bella Avila Standard Deduction for 2025 and 2026: Amounts, When to Take The standard deduction is a popular way for taxpayers to reduce their taxable income. Your deduction amount depends on your age, filing status and other factors. 2 By Sabrina Parys, Tina Orem Capital Gains Tax: Long and Short-Term Rates for 2025-2026 Capital gains are the profits from the sale of assets. They can be subject to short-term or long-term tax rates. 2 By Sabrina Parys, Tina Orem 25 Popular Tax Deductions and Tax Breaks for 2025-2026 A deduction cuts the income you're taxed on, which can mean a lower bill. A credit cuts your tax bill directly. Learn more about common tax breaks and write-offs — and how to claim them. 2 By Sabrina Parys, Tina Orem Federal Income Tax Calculator and Refund Estimator 2025-2026 Estimate your 2026 tax refund or bill using our free income tax calculator. Enter your income, age and filing status to get started. Sabrina Parys How Federal Tax Brackets and Rates Work Contrary to popular belief, your income isn't taxed at just one rate. The U.S. has a progressive tax system, meaning different portions of your income get taxed at different rates. 2 By Sabrina Parys, Tina Orem 2025 Tax Brackets and Federal Income Tax Rates The 2025 federal income tax rates range from 10% to 37% and apply to taxes due by April of this year. Find out which bracket you're in. Bella Avila 2026 Tax Brackets and Federal Income Tax Rates The IRS adjusts the federal tax brackets annually to keep pace with inflation. The 2026 tax brackets apply to taxes filed in 2027. Bella Avila Standard Deduction for 2025 and 2026: Amounts, When to Take The standard deduction is a popular way for taxpayers to reduce their taxable income. Your deduction amount depends on your age, filing status and other factors. 2 By Sabrina Parys, Tina Orem Capital Gains Tax: Long and Short-Term Rates for 2025-2026 Capital gains are the profits from the sale of assets. They can be subject to short-term or long-term tax rates. 2 By Sabrina Parys, Tina Orem 25 Popular Tax Deductions and Tax Breaks for 2025-2026 A deduction cuts the income you're taxed on, which can mean a lower bill. A credit cuts your tax bill directly. Learn more about common tax breaks and write-offs — and how to claim them. 2 By Sabrina Parys, Tina Orem Federal Income Tax Calculator and Refund Estimator 2025-2026 Estimate your 2026 tax refund or bill using our free income tax calculator. Enter your income, age and filing status to get started. Sabrina Parys How Federal Tax Brackets and Rates Work Contrary to popular belief, your income isn't taxed at just one rate. The U.S. has a progressive tax system, meaning different portions of your income get taxed at different rates. 2 By Sabrina Parys, Tina Orem 2025 Tax Brackets and Federal Income Tax Rates The 2025 federal income tax rates range from 10% to 37% and apply to taxes due by April of this year. Find out which bracket you're in. Bella Avila 2026 Tax Brackets and Federal Income Tax Rates The IRS adjusts the federal tax brackets annually to keep pace with inflation. The 2026 tax brackets apply to taxes filed in 2027. Bella Avila Standard Deduction for 2025 and 2026: Amounts, When to Take The standard deduction is a popular way for taxpayers to reduce their taxable income. Your deduction amount depends on your age, filing status and other factors. 2 By Sabrina Parys, Tina Orem Capital Gains Tax: Long and Short-Term Rates for 2025-2026 Capital gains are the profits from the sale of assets. They can be subject to short-term or long-term tax rates. 2 By Sabrina Parys, Tina Orem 25 Popular Tax Deductions and Tax Breaks for 2025-2026 A deduction cuts the income you're taxed on, which can mean a lower bill. A credit cuts your tax bill directly. Learn more about common tax breaks and write-offs — and how to claim them. 2 By Sabrina Parys, Tina Orem Get started Get startedon Anthem Tax Services's website
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