Is Social Security tax considered an income tax?

Social Security tax is not classified as an income tax because it serves a distinct purpose and has a separate funding mechanism. It specifically funds Social Security benefits, including retirement, disability, and survivor benefits, rather than being a general revenue tax that contributes to a broad range of government expenses.

Unlike income taxes, which are levied based on an individual's earnings from various sources and contribute to the overall budget, Social Security taxes are collected primarily from wages and are designated for the Social Security Trust Fund. This fund is then used solely for paying out benefits to qualifying individuals, creating a direct relationship between the taxes paid and the benefits received.

This distinction underscores the unique role Social Security taxes play in the federal taxation system, separating them from traditional income taxation, which does not have such earmarked responsibilities. Such clarity in classification reflects how the tax system is structured, ensuring that funds collected for Social Security are used explicitly for that program, rather than being pooled into general funds for diverse governmental purposes.