What Is FICA? Social Security and Medicare Tax Explained (2026)
FICA is the 7.65% taken from most paychecks for Social Security and Medicare. Here is how it is calculated for 2026, the wage cap, the extra Medicare tax, and how self-employed people pay it.
FICA stands for the Federal Insurance Contributions Act. On your pay stub, it is the money withheld for Social Security and Medicare. For most workers it adds up to 7.65% of every paycheck, and your employer pays the same amount again on top.
FICA tax rates for 2026
| Tax | Employee pays | Employer pays | Applies to |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | 1.45% | All wages, no cap |
| Additional Medicare | 0.9% | None | Wages over $200,000 (withholding threshold) |
| Total, most workers | 7.65% | 7.65% |
The Social Security wage base rose to $184,500 for 2026, up from $176,100 in 2025, according to the Social Security Administration. That makes the most an employee can pay in Social Security tax for 2026 $11,439.
How FICA is calculated
FICA is a flat percentage of your FICA wages. Unlike income tax, there are no brackets, standard deduction or W-4 settings that change it.
Example: $50,000 salary
- Social Security: $50,000 × 6.2% = $3,100
- Medicare: $50,000 × 1.45% = $725
- Total employee FICA: $3,825 for the year, or about $147.12 per biweekly paycheck
Example: $220,000 salary
- Social Security: $184,500 × 6.2% = $11,439 (stops once the cap is reached)
- Medicare: $220,000 × 1.45% = $3,190
- Additional Medicare: ($220,000 − $200,000) × 0.9% = $180
- Total employee FICA: $14,809
Why your paycheck may jump late in the year: once your year-to-date wages pass $184,500, Social Security withholding stops for the rest of the year, so higher earners see bigger checks in the final months.
Which pay counts for FICA
Most pay is subject to FICA: wages, salary, overtime, bonuses, commissions and reported tips. Some deductions lower FICA wages and some do not:
- Reduce FICA wages: most health, dental and vision premiums paid through a cafeteria (Section 125) plan, and HSA contributions made through payroll.
- Do not reduce FICA wages: traditional 401(k) and 403(b) contributions. They lower income tax but FICA still applies.
The Additional Medicare Tax
An extra 0.9% Medicare tax applies to high earners. Employers must start withholding it once your wages from that employer pass $200,000 in a year, regardless of filing status. Your actual liability depends on your filing status: the thresholds are $200,000 for single filers, $250,000 for married filing jointly and $125,000 for married filing separately. Any difference is settled on your tax return.
FICA for self-employed people
If you are self-employed or a 1099 contractor, no employer pays half for you. Instead you pay self-employment tax, which covers both halves:
- 15.3% in total (12.4% Social Security plus 2.9% Medicare)
- Calculated on 92.35% of your net self-employment earnings
- The Social Security part stops at the same $184,500 wage base (combined with any W-2 wages)
- You can deduct half of your self-employment tax when calculating your income tax
Self-employment tax is paid through quarterly estimated payments and your annual return, not through payroll.
Two jobs and too much Social Security tax
Each employer withholds Social Security separately, so if you work two jobs and earn more than $184,500 combined, you may overpay. The excess is not lost: you claim it as a credit on your federal tax return.
Can you get FICA back?
Generally no. FICA is not refundable like income tax withholding, except for excess Social Security from multiple employers and a few exemptions, such as certain nonresident students on F-1 or J-1 visas and members of some religious groups who qualify for exemption.
FICA questions
What is the FICA tax rate for 2026?
7.65% for employees: 6.2% for Social Security on wages up to $184,500 and 1.45% for Medicare on all wages. Employers pay a matching 7.65%.
What is the Social Security wage base for 2026?
$184,500. Wages above that amount are not subject to the 6.2% Social Security tax, so the maximum employee contribution is $11,439.
Is FICA the same as federal income tax?
No. FICA funds Social Security and Medicare at a flat rate. Federal income tax uses brackets and depends on your W-4, deductions and credits.
Do 401(k) contributions reduce FICA?
No. Traditional 401(k) contributions reduce federal income tax withholding, but Social Security and Medicare tax still apply to that money.
