What is OASDI tax on my paycheck?

OASDI stands for Old-Age, Survivors, and Disability Insurance—commonly called Social Security tax. You pay 6.2% of your wages up to the annual limit ($168,600 in 2024). Your employer pays another 6.2%, for a total of 12.4%.

Is OASDI the same as Social Security?

Yes. OASDI is the official name for the Social Security program. The tax funds retirement benefits, survivor benefits, and disability insurance. On your pay stub, it may show as OASDI, Social Security, SS, or FICA (which combines OASDI + Medicare).

Do I get OASDI tax back?

Not as a refund. The tax funds Social Security benefits you'll receive in retirement. If you over-pay (work multiple jobs and exceed the wage base), you can claim excess Social Security tax as a refundable credit on your tax return.

OASDI Tax Explained: Social Security Tax Rate & Limit (2026)

What Is OASDI Tax?

OASDI Stands For

Letter	Meaning
O	Old-Age (retirement benefits)
A	And
S	Survivors (benefits for family)
D	Disability
I	Insurance

How It Appears on Pay Stubs

Label	Meaning
OASDI	Official name
Social Security	Common name
SS	Abbreviation
FICA	Social Security + Medicare combined
Fed OASDI/EE	Federal OASDI Employee portion

OASDI Tax Rates

2024 Rates

Payer	Rate	On Wages Up To
Employee	6.2%	$168,600
Employer	6.2%	$168,600
Combined	12.4%	$168,600
Self-employed	12.4%	$168,600

FICA Breakdown (OASDI + Medicare)

Tax	Employee Rate	Employer Rate	Total
OASDI (Social Security)	6.2%	6.2%	12.4%
Medicare	1.45%	1.45%	2.9%
Total FICA	7.65%	7.65%	15.3%

Medicare Surtax (High Earners)

Income Threshold	Additional Tax
Single: $200,000+	+0.9%
Married filing jointly: $250,000+	+0.9%
Married filing separately: $125,000+	+0.9%

Annual Limits

Year	Wage Base	Max Employee Tax
2026	TBD	TBD
2025	~$174,900 (est.)	~$10,844
2024	$168,600	$10,453.20
2023	$160,200	$9,932.40
2022	$147,000	$9,114.00
2021	$142,800	$8,853.60
2020	$137,700	$8,537.40
2019	$132,900	$8,239.80

Why the Limit Increases

Factor	Impact
Average Wage Index	Base rises with national wages
Inflation	Adjusts for cost of living
SSA calculation	Formula determines annual increase

How OASDI Is Calculated

Standard Employee Calculation

Gross Wages	× Rate	= OASDI Tax
$50,000	× 6.2%	$3,100
$75,000	× 6.2%	$4,650
$100,000	× 6.2%	$6,200
$150,000	× 6.2%	$9,300
$168,600	× 6.2%	$10,453.20
$200,000	× 6.2%	$10,453.20 (max)
$500,000	× 6.2%	$10,453.20 (max)

Per-Paycheck Withholding

Annual Salary	Biweekly OASDI	Monthly OASDI
$40,000	$95.38	$206.67
$60,000	$143.08	$310.00
$80,000	$190.77	$413.33
$100,000	$238.46	$516.67
$120,000	$286.15	$620.00
$168,600+	$402.05	$871.10

When OASDI Stops Being Withheld

Hitting the Wage Base

Scenario	What Happens
Earn under $168,600	Pay 6.2% all year
Earn exactly $168,600	Pay 6.2% all year
Earn over $168,600	Stop paying once limit reached

Example: $250,000 Annual Salary

Period	Wages	OASDI Withheld
Jan-Aug	$166,667	$10,333.33
September (partial)	$1,933	$119.87
Sept-Dec	$83,333	$0
Total	$250,000	$10,453.20

OASDI stops after reaching the $168,600 wage base (~early September for this salary).

Calculator: When Will OASDI Stop?

Annual Salary	Month OASDI Maxes Out
$168,600	December
$200,000	October
$250,000	August
$300,000	July
$400,000	May
$500,000	April
$1,000,000	February

OASDI for Self-Employed

Self-Employment Tax

Component	Rate
OASDI	12.4%
Medicare	2.9%
Total SE tax	15.3%

Self-Employment Calculation

Net Self-Employment Income	× 92.35%	× 15.3%	= SE Tax
$50,000	$46,175	15.3%	$7,065
$100,000	$92,350	15.3%	$14,130
$168,600+	$155,706	15.3%	$23,823

You can deduct half of SE tax (employer portion) from income.

SE Tax Deduction

SE Tax Paid	Deductible Amount	Tax Savings (22% bracket)
$7,065	$3,532	$777
$14,130	$7,065	$1,554
$23,823	$11,912	$2,621

Multiple Jobs and OASDI

When You Have Two Employers

Situation	What Happens
Each job under limit	Both employers withhold full 6.2%
Combined over limit	You may overpay
Overpayment	Claim refund on tax return

Example: Two Jobs

Job	Wages	OASDI Withheld
Job 1	$100,000	$6,200
Job 2	$90,000	$5,580
Total	$190,000	$11,780
Maximum owed	$168,600	$10,453.20
Overpayment		$1,326.80

Claim $1,326.80 as a credit on Form 1040.

Line on Form 1040	Description
Schedule 3, Line 11	Excess Social Security tax withheld
Plus additional credits	If applicable

What OASDI Funds

Benefit Type	Who Receives	Funded By
Retirement	Workers 62+	OASDI
Spousal	Spouses of retirees	OASDI
Widow/widower	Surviving spouses	OASDI
Children	Minor children of deceased/disabled	OASDI
Disability (SSDI)	Disabled workers	OASDI

How Benefits Are Calculated

Factor	Impact
Highest 35 years of earnings	Averaged for calculation
Age at filing	62 (reduced) to 70 (maximum)
OASDI contributions	Build “credits” for eligibility

Credits Needed

Benefit	Credits Required
Retirement	40 credits (10 years work)
Disability	Varies by age
Survivors	6-40 credits

OASDI Exemptions

Who Doesn’t Pay OASDI

Category	Exemption Type
Some religious groups	Apply for exemption
Certain visa holders	F-1, J-1, M-1 students
Some state/local employees	Covered by other pensions
Students working at their school	Specific requirements

Non-Exempt Income

Income Type	Subject to OASDI?
Wages	Yes
Salaries	Yes
Bonuses	Yes
Commissions	Yes
Tips	Yes
Self-employment	Yes

Exempt from OASDI

Income Type	Subject to OASDI?
Investment income	No
Interest	No
Dividends	No
Capital gains	No
Pension income	No
Social Security benefits	No

OASDI vs Similar Taxes

Tax Comparison

Tax	Rate	Limit	What It Funds
OASDI	6.2%	$168,600	Social Security
Medicare	1.45%	No limit	Medicare Part A
Additional Medicare	0.9%	$200k+	Medicare
State disability (CA)	1.1%	$153,164	State disability
State disability (NJ)	0.14%	$161,400	State disability

FICA Total

Combined Tax	Employee Pays	No Limit?
OASDI	6.2%	Capped at wage base
Medicare	1.45%	No cap
Additional Medicare	0.9%	Over $200k (single)
Total potential	8.55%	On high earners

Understanding Your Pay Stub

Sample Pay Stub Breakdown

Deduction	Amount	Notes
Federal Income Tax	$461.54	Based on W-4
OASDI/SS	$238.46	6.2% × $3,846.15
Medicare	$55.77	1.45% × $3,846.15
State Tax	Varies	State dependent
Total FICA	$294.23	OASDI + Medicare

Based on $100,000 annual salary, biweekly pay

Frequently Asked Questions

Why is OASDI so much of my paycheck?

OASDI at 6.2% is a significant payroll tax, but your employer also pays 6.2%, making the total contribution 12.4% of your wages. This funds the Social Security system that provides retirement, disability, and survivor benefits.

Can I opt out of OASDI?

Generally no. Most employees must pay OASDI. Exceptions exist for certain religious groups, some nonresident aliens, and students. You cannot opt out simply because you don’t want to pay.

Do high earners pay less proportionally?

Yes. Because OASDI is capped at $168,600 (2024), someone earning $1 million pays the same OASDI as someone earning $168,600—both pay $10,453.20. This makes OASDI regressive at high incomes.

Is OASDI being phased out?

No. OASDI is the funding mechanism for Social Security, which remains a major government program. There are ongoing debates about adjustments (raising the cap, changing benefits), but the tax itself is not being eliminated.

OASDI Quick Facts

Fact	Detail
Full name	Old-Age, Survivors, and Disability Insurance
Employee rate	6.2%
Employer rate	6.2%
2024 wage base	$168,600
Maximum employee tax	$10,453.20
Combined with Medicare	Called FICA
What it funds	Social Security benefits
Who pays	Almost all workers

Bottom Line

Understanding OASDI	Key Points
What it is	Social Security tax
Your contribution	6.2% of wages up to $168,600
Employer match	Another 6.2%
Self-employed	Pay both halves (12.4%)
When it stops	After hitting wage base limit
Multiple jobs	May overpay; claim refund
Funds	Retirement, survivors, disability

Key takeaways:

OASDI = Social Security (same thing, different name)
You pay 6.2% up to $168,600 (2024)
High earners stop paying before year-end
Multiple jobs may result in overpayment (refundable)
Self-employed pay full 12.4%

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