OASDI stands for Old-Age, Survivors, and Disability Insurance. It’s a Social Security tax that helps fund benefits for retirees, disabled workers, and survivors.
1. What Is OASDI Tax?
Both you and your employer pay the OASDI tax. Each pays 6.2% of your income, making the total 12.4%—half from you and half from your boss.
2. Who Pays the OASDI Tax?
The OASDI tax rate is 6.2% of your paycheck. It only applies to a set income limit, which adjusts yearly. Once you pass the limit, it stops being withheld.
3. How Much Is Taken Out?
OASDI tax money goes to Social Security programs, which support retirees, disabled individuals, and families who’ve lost a wage earner.
4. What Does It Fund?
Yes! OASDI is just another name for the Social Security tax. If you see “OASDI” on your pay stub, that’s the Social Security deduction.
5. Is It the Same as Social Security Tax?
This tax funds your future benefits. So, while you pay now, you’re also saving for retirement, potential disability, or helping your family if something happens.
6. Why It Matters to You
Most workers can't avoid it. The only exceptions are certain government workers or specific religious groups. For most of us, it’s a must-pay tax.
7. Can You Avoid It?