Social Security Tax

Social Security tax is the old-age, survivors, and disability insurance portion of U.S. payroll tax. It applies to covered wages and to net earnings from self-employment, including self-employment income earned abroad by U.S. citizens and residents unless a totalization agreement or other exception changes the result.

Why it matters for U.S. expats

Social Security tax often matters for U.S. expats who are self-employed, work for a U.S. employer, are assigned abroad, or move between countries during their careers. The Foreign Earned Income Exclusion can reduce regular U.S. income tax, but it does not reduce Social Security tax or self-employment tax, so an expat who owes little or no U.S. income tax may still owe U.S. Social Security and Medicare tax.

Common questions

1. Do U.S. expats pay Social Security tax?

Yes, when their wages or self-employment income are subject to U.S. Social Security tax. This is common for self-employed U.S. expats and for employees whose wages remain subject to FICA.

2. What is the Social Security tax rate?

The Social Security tax rate is 6.2% for employees and 6.2% for employers, or 12.4% total. Self-employed taxpayers pay the Social Security portion through self-employment tax.

3. What is the Social Security wage base?

The Social Security wage base is the maximum amount of earnings subject to Social Security tax for the year. For 2026 earnings, the wage base is $184,500.

4. Does Social Security tax apply to all wages?

No. Social Security tax applies only up to the annual wage base. Medicare tax has no wage base limit.

5. Do self-employed U.S. expats pay Social Security tax?

Yes, if net earnings from self-employment are at least $400 and no totalization agreement or other exception removes the U.S. self-employment tax obligation.

6. Does the Foreign Earned Income Exclusion reduce Social Security tax?

No. The Foreign Earned Income Exclusion can reduce income tax on qualifying foreign earned income, but it does not reduce U.S. Social Security tax or self-employment tax.

7. Does the Foreign Tax Credit reduce Social Security tax?

No. The Foreign Tax Credit reduces eligible income tax. It does not reduce Social Security tax, Medicare tax, or self-employment tax.

8. Can a totalization agreement stop double Social Security taxation?

Yes. A totalization agreement can assign Social Security coverage to one country so the same work is not subject to social security tax in both countries.

9. What is a certificate of coverage?

A certificate of coverage is proof that a worker is covered by one country’s Social Security system under a totalization agreement. It can support an exemption from the other country’s social security tax.

10. Do employees abroad pay Social Security tax?

They can. U.S. employees working abroad may remain subject to U.S. FICA if they work for a U.S. employer or in another covered arrangement.

11. Do foreign employers withhold U.S. Social Security tax?

Not usually, unless they are required or have entered into a U.S. coverage arrangement. Employees working for foreign employers should still review whether U.S. or foreign social security coverage applies.

12. Do foreign social security contributions count as U.S. Social Security tax?

No. Foreign social security contributions are separate from U.S. Social Security tax. A totalization agreement may determine which country’s system applies.

13. Can Social Security tax help expats qualify for U.S. benefits?

Yes. Covered U.S. earnings can generate Social Security credits. Totalization agreements may also allow credits from an agreement country to help determine benefit eligibility.

14. What form reports Social Security tax for self-employed expats?

Self-employed taxpayers calculate self-employment tax on Schedule SE and attach it to Form 1040.

15. What records should U.S. expats keep for Social Security tax?

Keep W-2s, foreign payslips, employer assignment letters, contracts, invoices, Schedule C records, Schedule SE calculations, foreign social security statements, certificates of coverage, and totalization agreement support.

Related forms

• Schedule SE: Self-Employment Tax
• Schedule C: Profit or Loss From Business
• Form 1040: U.S. Individual Income Tax Return
• Form 1040-ES: Estimated Tax for Individuals
• Form W-2: Wage and Tax Statement
• Form 2555: Foreign Earned Income Exclusion

When to get help

Professional guidance is important when:

• You are self-employed abroad.
• You work abroad for a U.S. employer.
• You work abroad for a foreign employer but remain connected to a U.S. company.
• You pay foreign social security contributions.
• You live in a country with a totalization agreement.
• You need a certificate of coverage.
• You claimed the Foreign Earned Income Exclusion but still need to calculate self-employment tax.
• You are unsure whether U.S. or foreign social security coverage applies.

Bright!Tax can review Social Security tax exposure, apply totalization agreement rules, coordinate Schedule SE reporting, and help prevent double social security taxation where relief is available. Get started with Bright!Tax.

Related Bright!Tax guides

• Self-employment taxes for Americans abroad
• Totalization agreements for U.S. expats
• Can Americans abroad earn U.S. Social Security credits?

Official sources

• IRS: Topic no. 751, Social Security and Medicare withholding rates
• IRS: Self-employment tax for businesses abroad
• SSA: Contribution and Benefit Base
• IRS: About Schedule SE
• SSA: U.S. international Social Security agreements

Reviewed by

Katelynn Minott, CPA & CEO

Last reviewed

July 2026