2003 fica tax rates Although the FICA tax rate does not increase, it's maximum wage base increases to $87,000 for the year 2003, increasing the maximum tax to $5,394. Medicare remains the same.   Tax Tax Rate Maximum Wage Base Maximum Tax Social Security 6.20% $87,000 $5,394 Medicare 1.45% No limit No ceiling     FICA tax is a combination of a 6.2% social security tax and a 1.45% Medicare tax. The social security tax is assessed on wages up to $87,000; the Medicare tax is assessed on all wages. Employers and employees are both liable for FICA taxes at the rates given above. Self-employed individuals pay a self-employment tax which is the equivalent of FICA tax. For 2003, they will pay a 12.4% OASDI tax (the old age, survivors, and disability insurance tax) on the first $87,000 of self-employment income. A 2.9% Medicare tax is imposed on all net self-employment income. Fifty percent of the self-employment tax paid is deductible.