FICA Tax: Social Security & Medicare (2026)
FICA — the Federal Insurance Contributions Act — is the payroll tax that funds Social Security and Medicare. Every paycheck carries it, and in 2026 the rules have a few numbers every worker should know: the Social Security wage base rises to $184,500, the employee rate stays 6.2% for Social Security and 1.45% for Medicare, and a 0.9% additional Medicare tax still applies above certain income thresholds. This guide explains exactly how FICA is calculated, who pays what, and how to see it on your paystub.
The Two Parts of FICA
FICA has two components. Social Security (Old-Age, Survivors, and Disability Insurance) is taxed at 6.2% on both employee and employer, but only up to an annual wage base. Medicare is taxed at 1.45% on both sides with no wage cap, plus an extra 0.9% on high earners. Your paystub shows the employee half; your employer pays a matching half you never see but which raises the true cost of employing you.
2026 Social Security Wage Base
For 2026 the Social Security taxable maximum is $184,500, up from $176,100 in 2025. Earnings above that line are not subject to the 6.2% Social Security tax for the rest of the year. A worker earning $200,000 pays 6.2% only on the first $184,500 — about $11,439 — and nothing more in Social Security tax on the remaining $15,500. The gross vs net guide shows how this flows into take-home.
Medicare: No Cap, Plus the 0.9% Surtax
Medicare tax applies to all earnings at 1.45% (employee) and another 1.45% (employer). On top of that, a 0.9% Additional Medicare Tax hits employee wages above $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately). Unlike the base Social Security tax, the employer does not match the 0.9%. The tax guide covers how this interacts with income tax withholding.
FICA for the Self-Employed
If you are self-employed (a 1099 contractor, see the 1099 vs W-2 guide), you pay the self-employment (SE) tax of 15.3% — both the employee and employer halves combined — on net earnings, up to the Social Security base, plus the 0.9% surtax above the threshold. The good news: you can deduct the employer-equivalent half when computing income tax, softening the blow. Quarterly estimated payments cover it (see the 1099 guide).
How FICA Shows on Your Paystub
Your paystub lists "Social Security" or "OASDI" and "Medicare" as separate lines, each showing the amount withheld that period. The paystub guide walks every line. If you hit the wage base mid-year, the Social Security line goes to zero while Medicare continues. The 0.9% surtax may appear as a separate "Medicare" add-on once you cross the threshold.
FICA vs Federal Income Tax
FICA is separate from federal income tax and is calculated differently. Income tax is progressive with brackets and allowances from your W-4; FICA is a flat percentage (with the wage base and surtax exceptions). You cannot reduce FICA by claiming more allowances — only income-tax withholding responds to the W-4. That is why a bigger refund from a W-4 change never lowers your FICA.
FICA and Your 401(k)
Traditional 401(k) contributions are taken from gross pay before income tax but after FICA in most plans, so they still reduce your taxable income yet do not reduce your FICA base. The 401(k) impact guide explains the trade-off: a bigger 401(k) deferral cuts income tax but not payroll tax, and it lowers your net take-home in the short run while building retirement savings.
State Payroll Taxes on Top
Some states add their own payroll taxes — most notably state disability insurance (SDI) in California, New York, New Jersey, Rhode Island, and Hawaii, and paid-family-leave premiums elsewhere. These are separate from FICA and vary by state. The tax guide lists them, and the Net Pay Calculator models the combined hit.
A Worker's FICA Example
An employee earning $90,000 pays 6.2% Social Security on the first $184,500, so the full $5,580, plus 1.45% Medicare ($1,305), total $6,885 employee-side. The employer pays a matching $6,885, making the true labor cost $96,885. Above $200,000, the 0.9% surtax would add $0.90 per $100 of the excess. The Net Pay Calculator shows the per-paycheck hit on your gross.
Why FICA Stops Mid-Year for High Earners
Once year-to-date pay crosses $184,500, the Social Security line goes to zero while Medicare continues. A worker who hits the base in August simply stops the 6.2% for the rest of the year, slightly raising net in those final months. The paystub guide explains reading the YTD column so the change is expected, not alarming.
State Disability and Paid-Leave Taxes
Several states add disability or family-leave premiums — California, New York, New Jersey, Rhode Island, and Hawaii run state disability programs; others fund paid leave. These are separate from FICA and reduce take-home. The tax guide lists them; the Net Pay Calculator models the combined bite.
FICA for the Self-Employed, in Numbers
A 1099 contractor with $90,000 net pays the full 15.3% SE tax, about $13,770, of which half is deductible for income tax. That is roughly double the employee's $6,885 because there is no employer to share the load. The 1099 guide covers quarterly payments and the QBI deduction that can offset part of this.
The Wage Base in Plain Terms
The $184,500 2026 Social Security base means only the first $184,500 of wages is taxed at 6.2%. A worker at $200,000 pays the same Social Security tax as one at $184,500 — about $11,439 — and nothing more on the excess, though Medicare continues. The gross vs net guide shows how this shapes the deduction stack once you cross the base.
Medicare Surtax Thresholds
The 0.9% Additional Medicare Tax applies above $200,000 (single), $250,000 (married joint), or $125,000 (married separate). It is on the employee only — no employer match — and applies to all wages and some railroad retirement pay above the line. The tax guide frames how it interacts with income tax withholding above those thresholds.
FICA and Your Paycheck Stability
Because FICA is flat and W-4-independent, it is the most predictable line on your stub; only the Social Security portion ends mid-year for high earners. The paystub guide explains reading the YTD column so the mid-year stop is expected. Unlike income tax, you cannot lower FICA by claiming allowances.
FICA for Couples
A dual-income couple each pays FICA on their own wages; there is no joint FICA cap, unlike the Social Security base applying per worker. Two earners near the base each max out separately. The W-4 guide covers the separate Step 2 issue for couples; FICA itself is simply 15.3% combined per worker up to each base.
Who Pays What Share of FICA
You and your employer each pay 6.2% Social Security and 1.45% Medicare — a combined 15.3%, split evenly. The self-employed pay the whole 15.3% but deduct half. The 1099 guide covers the self-employed side; the gross vs net guide shows FICA's place in the deduction stack before income tax is figured.
The Social Security Wage Base, 2026
The 2026 base is $184,500 (up from $176,100 in 2025), so only wages up to that are taxed at 6.2%. A $200,000 earner pays the same Social Security tax as one at the base — about $11,439 — then stops, while Medicare continues. The Net Pay Calculator models the mid-year drop in the Social Security line for high earners.
Medicare's 0.9% Surtax in Detail
Above $200,000 single ($250,000 joint, $125,000 separate), an extra 0.9% Medicare tax applies to the employee only — no employer match — on all wages above the line. The tax guide frames how it layers on income tax; the bonus guide notes a large bonus can push you over the threshold mid-year.
FICA and Benefit Eligibility
Your FICA payments build Social Security retirement and Medicare eligibility; the wage base caps the tax but not the credit to your record. The 401(k) guide is about extra saving on top; FICA is the mandatory floor. The paystub guide shows the YTD columns that track your taxed wages toward the base.
Read the Lines on Your Stub
The stub lists Social Security at 6.2% to the base and Medicare at 1.45% (plus 0.9% if over threshold); if Social Security stops mid-year, you hit the base — normal, not an error. The paystub guide decodes every tax line; the W-4 guide clarifies that FICA is W-4-independent and cannot be lowered by allowances.
A High Earner Worked Example
A $250,000 earner pays 6.2% Social Security only up to $184,500 — about $11,439 — then stops, while Medicare is 1.45% on all $250,000 ($3,625) plus 0.9% on the $50,000 over the $200,000 threshold ($450). Total FICA is about $15,514, far below 7.65% of the whole wage. The Net Pay Calculator models the mid-year Social Security stop; the tax guide frames the 0.9% surtax layering on income tax above the threshold.
Your FICA Checklist
Each year, confirm: Social Security stopped once you passed $184,500, the 0.9% surtax appears above the threshold, and your employer matched the employee share. The paystub guide decodes the lines; the W-4 guide clarifies FICA is W-4-independent. The 1099 guide covers the self-employed side, where you pay both halves but deduct half, a very different math from the W-2 split you see on the stub.
FICA and Couples
A dual-income couple each pays FICA on their own wages; there is no joint FICA cap, unlike the Social Security base applying per worker. Two earners near the base each max out separately, so combined FICA can approach $23,000. The W-4 guide covers the separate Step 2 issue for couples; FICA itself is simply 15.3% combined per worker up to each base, and the gross vs net guide places it in the deduction stack.
Myths About FICA
Myths: that FICA stops at the same amount for everyone (the Social Security base is a fixed $184,500, not per-person variable); that Medicare has a cap (it does not); and that you can lower FICA via the W-4 (you cannot — it is W-4-independent). The W-4 guide confirms the split; the gross vs net guide places FICA early in the deduction stack so a mid-year Social Security stop is expected, not an error to report, once your YTD crosses the base.
Next Steps and the Calculators
Verify your stub lines with the paystub guide, and model the mid-year drop for high earners with the Net Pay Calculator. The 1099 guide covers the self-employed side where you pay both halves but deduct half; once you understand the exact 2026 rates, FICA becomes the most predictable line on your stub rather than a mystery deduction.
Key Takeaways
In 2026 FICA is 6.2% Social Security (up to the $184,500 wage base) plus 1.45% Medicare (uncapped), with a 0.9% surtax above $200k/$250k/$125k. Employers match the base rates; the self-employed pay both halves as SE tax. FICA is flat and W-4-independent, unlike income tax. Model your real withholding with the Net Pay Calculator and read the lines in the paystub guide.
Frequently Asked Questions
Related Reading
Figures are 2026 estimates for guidance only. See the 50 State Wage Guides for local detail.