Tax Rates for 2018
The Employee Social Security rate remains 6.2%, as in 2017. The taxable wage limit for this tax is $128,400. The maximum Social Security tax that an employee will pay in 2018 is $7,960.80.
All wages are still subject to the 1.45% Medicare tax rate. Additionally, wages over $200,000 are subject to an additional 0.9% Medicare tax, for a total Medicare Tax of 2.35% on wages over $200,000.
California State Disability Tax
The State Disability Insurance (SDI) rate is 1% of annual earnings up to the California taxable wage limit, up from 0.9% in 2017. The California taxable wage limit is $114,967. The maximum tax withholding for California State Disability is $1,149.67.