Guide
What Are FICA Taxes?
FICA stands for the Federal Insurance Contributions Act. It is the payroll tax that funds Social Security and Medicare, and it is withheld from essentially every US paycheck. On your pay stub it usually appears as two lines: "Social Security" (or "OASDI") and "Medicare".
The two parts
| Component | Employee rate | Applies to |
|---|---|---|
| Social Security (OASDI) | 6.2% | Wages up to the annual wage base — $184,500 for 2026 |
| Medicare | 1.45% | All wages, no cap |
| Additional Medicare Tax | +0.9% | Wages above $200,000 in a year (single filers; other thresholds by filing status) |
For most workers, FICA is a flat 7.65% of gross wages (6.2% + 1.45%). It does not depend on your filing status, dependents, or Form W-4 — those only affect income-tax withholding.
The Social Security wage base
Social Security tax only applies to the first slice of your wages each year. For 2026 that limit is $184,500. Once your year-to-date wages pass it, the 6.2% line stops and your paychecks get slightly larger for the rest of the year. Medicare has no equivalent cap — the 1.45% continues on every dollar.
The wage base is adjusted for average-wage growth most years, so it generally rises. If you change jobs mid-year, each employer restarts the count, so you can over-pay Social Security across two employers — you claim the excess back on your tax return.
The Additional Medicare Tax
High earners pay an extra 0.9% Medicare tax on wages above a threshold ($200,000 for single filers, $250,000 for married filing jointly, $125,000 for married filing separately). Employers withhold it once your pay with them passes $200,000 regardless of filing status; any mismatch with your actual liability is reconciled on your return.
Your employer pays too
FICA is split. You pay 6.2% + 1.45%; your employer matches the 6.2% + 1.45% out of its own funds (the employer does not match the extra 0.9%). Self-employed people pay both halves themselves through SECA — 12.4% Social Security and 2.9% Medicare — but can deduct the employer-equivalent half.
What FICA does and does not reduce
- Pre-tax health premiums, HSA, and FSA contributions are exempt from FICA — they lower the wages the 7.65% is applied to.
- Traditional 401(k) contributions are NOT exempt from FICA. They reduce income-tax withholding but Social Security and Medicare are still taken on the full amount. (Roth 401(k) is the same for FICA.)
- FICA is withheld on overtime, bonuses, and commissions like any other wages.
Quick check on your pay stub
- Take this period's gross pay and subtract any pre-tax health, HSA, or FSA amounts.
- Multiply by 0.062 — that should match the Social Security line.
- Multiply the same figure by 0.0145 — that should match the Medicare line.
- If Social Security looks low or missing, check whether your YTD wages have passed $184,500.
See it in a paycheck estimate
The Paycheck Calculator shows Social Security, Medicare, and the Additional Medicare Tax as separate lines, using the 2026 figures above. The Take-Home Pay Calculator rolls FICA into an annual take-home estimate from a salary.
Sources
- Social Security Administration — Contribution and Benefit Base
- IRS — Topic no. 751, Social Security and Medicare withholding rates
- IRS — Additional Medicare Tax
- IRS — Topic no. 756, Employment taxes for household employees
The exact tables the calculators use are on the Methodology & Sources page.