Taxes on your pay
What is FICA tax?
Two taxes, one acronym, and the only line on your paycheck that your employer matches dollar for dollar.
The short answer
FICA is the pair of payroll taxes that funds Social Security and Medicare. In 2026 it takes 6.2% for Social Security on wages up to $184,500 and 1.45% for Medicare on every dollar - 7.65% combined - and your employer pays a matching 7.65%. Wages above $200,000 carry an extra 0.9% Additional Medicare Tax, which the employer does not match.
The two halves
| Social Security (OASDI) | Medicare (HI) | |
|---|---|---|
| Employee rate | 6.2% | 1.45% |
| Employer rate | 6.2% | 1.45% |
| 2026 wage cap | $184,500 | None |
| Most an employee pays | $11,439 | Unlimited |
| Extra on high earners | None | 0.9% above $200,000 |
| Stub abbreviation | OASDI, Fed OASDI/EE, SS | MED, Fed MED/EE |
| What it funds | Retirement, survivor and disability benefits | Hospital insurance, Medicare Part A |
2026 figures. The wage base is indexed to average wage growth and rises most years; the rates have not changed since 1990.
The employer match is real money and it is why the true payroll tax on your wages is 15.3%, not 7.65%. Economists generally treat the employer half as coming out of wages that would otherwise have been paid to you; the self-employed see this plainly, because they pay both halves themselves.
What FICA costs at different salaries
| Annual wages | Social Security | Medicare | Your FICA | Employer pays |
|---|---|---|---|---|
| $40,000 | $2,480 | $580 | $3,060 | $3,060 |
| $65,000 | $4,030 | $943 | $4,973 | $4,973 |
| $100,000 | $6,200 | $1,450 | $7,650 | $7,650 |
| $150,000 | $9,300 | $2,175 | $11,475 | $11,475 |
| $184,500 | $11,439 | $2,675 | $14,114 | $14,114 |
| $250,000 | $11,439 | $4,075 | $15,514 | $15,064 |
Wages, not taxable income - FICA ignores the standard deduction, filing status and dependents entirely. At $184,500 the Social Security column reaches its ceiling of $11,439 and stops.
The wage base, and the raise that arrives in autumn
Social Security only applies to the first $184,500 of wages in 2026. High earners cross that line partway through the year, the OASDI line vanishes from the stub, and take-home pay jumps by 6.2% of gross for the rest of the year. It resets every January, which is the mirror-image surprise: the first check of the year is smaller than December's. Other reasons a check shrinks covers the rest.
Additional Medicare Tax
Wages above $200,000 carry an extra 0.9%. Two details trip people up. Employers must start withholding it once your wages from them pass $200,000, regardless of your filing status, so a married couple can have it withheld and get some back. And the threshold on the actual return is different - $250,000 for joint filers, $125,000 for married filing separately - so two earners under $200,000each can end up owing it with nothing withheld. Line 4(c) of Form W-4 is the fix; the W-4 calculator works out the amount.
What escapes FICA, and what does not
| Deduction | Escapes income tax | Escapes FICA |
|---|---|---|
| Traditional 401(k), 403(b), TSP | Yes | No |
| Roth 401(k) | No | No |
| Health, dental and vision premiums (Section 125) | Yes | Yes |
| Health savings account through payroll | Yes | Yes |
| Flexible spending accounts, dependent care | Yes | Yes |
| Commuter benefits (transit and parking) | Yes | Yes |
| Group term life above $50,000 | No - it is added as imputed income | No |
This is why a dollar into a health plan is worth more than a dollar into a 401(k) today, and why the wage boxes on a W-2 disagree with each other.
To see the effect on your own paycheck, the 401(k) and health insurance calculator models pre-tax deductions against the 2026 rates, and the main paycheck calculator shows FICA as its own line in the breakdown.
Self-employment: the same tax under another name
Without an employer to pay the other half, self-employed people pay both through SECA at 15.3%: 12.4% for Social Security up to the same $184,500 cap, and 2.9% for Medicare with no cap. The tax applies to 92.35% of net earnings rather than all of it, and half of what you pay is deductible against income tax, so the effective bite is closer to 14%. Anyone with both a job and side income should count the wages first: they use up the Social Security cap before self-employment earnings do.
FAQ
Frequently asked questions
What is FICA tax and why is it on my paycheck?+
FICA stands for the Federal Insurance Contributions Act, the 1935 law that funds Social Security and Medicare through payroll. It takes 6.2% of wages for Social Security up to $184,500 in 2026 and 1.45% for Medicare with no cap - 7.65% in total. Your employer pays the same again on your behalf, so 15.3% of your wages goes into the two programs.
Is FICA the same as federal income tax?+
No, and they are separate lines on a pay stub. Federal income tax is graduated, depends on your filing status and dependents, and is adjustable through Form W-4. FICA is a flat percentage of wages that no form changes. It is possible to owe no federal income tax for a year and still pay FICA on every dollar you earned.
Can I get a refund of FICA?+
Only in narrow cases. The common one is having more than one employer in a year: each withholds Social Security up to the full $184,500 cap without knowing about the other, so you can overpay. Claim the excess as a credit on your Form 1040. Certain student workers, some visa holders and members of specific religious groups are exempt from FICA entirely. Otherwise it is not refundable and not adjustable.
Do 401(k) contributions reduce FICA?+
No. Traditional 401(k) money escapes federal income tax now but Social Security and Medicare are still charged on it, which is why the Social Security wages in box 3 of a W-2 are usually higher than the taxable wages in box 1. Section 125 benefits - health, dental and vision premiums, HSA and FSA contributions - do escape FICA, which makes them the cheaper pre-tax dollar.
How much FICA does a self-employed person pay?+
Both halves: 15.3% of net self-employment earnings, called SECA. There are two offsets that make the real cost lower - you only pay it on 92.35% of net earnings, and half of what you pay is deductible against income tax.
Does FICA stop when I hit the wage base?+
The Social Security half does. Once your wages for the year pass $184,500, that 6.2% line disappears from your stub and your take-home pay rises by up to $11,439 spread over the rest of the year. The Medicare half never stops; above $200,000 it rises.
Sources
- IRS, topic no. 751, Social Security and Medicare withholding rates
- IRS, questions and answers for the Additional Medicare Tax
- Social Security Administration, 2026 COLA fact sheet
- Social Security Administration, contribution and benefit base
- IRS Publication 15 (Circular E), employer's tax guide
- IRS, cafeteria plans (Section 125)
General information for planning, not tax or legal advice. Federal figures are checked against the cited IRS, SSA and Department of Labor documents.
Read next
Related guides and tools
- What is OASDI on my paycheck?
The line labelled OASDI or Fed OASDI/EE is Social Security. What it funds, what it costs and when it stops.
- How much tax is taken out of a paycheck
Every tax on a US pay stub with 2026 numbers: federal brackets, FICA and state ranges.
- How to read a pay stub
Every section of a pay stub explained, plus a decoder for the abbreviations payroll systems use.
- Pre-tax vs. post-tax deductions
Which benefits come out before tax, which come out after, and why a 401(k) still pays Social Security.