How FICA tax is calculated in 2026
FICA is two separate taxes on earned income. Social Security takes 6.2% of wages up to the 2026 wage base of $184,500 and nothing above it, so the most any employee pays is $11,439. Medicare takes 1.45% of every dollar with no cap. Together that's the familiar 7.65%. On a $75,000 salary: $4,650 Social Security plus $1,087.50 Medicare, $5,737.50 in total, or about $220.67 per biweekly paycheck.
Your employer pays a matching 7.65% that never shows on your pay stub. On that same $75,000 salary the employer sends another $5,737.50, which is why total payroll cost runs well above the salary itself.
Unlike income tax, FICA has no standard deduction, no brackets and no credits. It starts with the first dollar you earn, which is why a part-time worker who owes no income tax still sees 7.65% withheld.
Additional Medicare tax over $200,000
High earners pay an extra 0.9% Medicare tax on wages above $200,000 (single or head of household), $250,000 (married filing jointly) or $125,000 (married filing separately). Employers must start withholding it once your wages with them pass $200,000, whatever your filing status. There's no employer match on this part. A single filer earning $250,000 pays $11,439 Social Security, $3,625 Medicare and $450 Additional Medicare: $15,514 in total, or 6.2% of pay. FICA becomes a smaller share of income as pay rises, because Social Security stops at the wage base.
Married couples can end up under- or over-withheld. Two spouses each earning $150,000 have nothing withheld for Additional Medicare, but together they're $50,000 over the $250,000 joint threshold and owe $450 when they file. The opposite also happens: one spouse earning $220,000 with a non-working partner has $180 withheld that comes back as a credit on the return.
Self-employment tax: both halves
Self-employed people pay both the employee and employer share, 15.3% in total, on 92.35% of net profit. The 92.35% factor stands in for the employer-half deduction an employee never sees. On $80,000 of net 1099 profit, $73,880 is subject to the tax: $9,161.12 Social Security (12.4%) plus $2,142.52 Medicare (2.9%), $11,303.64 in total.
Half of that, $5,651.82, is deducted when you figure income tax, so the real cost is lower than it first looks. Self-employment tax is paid through quarterly estimated payments rather than withholding. Freelancers who forget it often face their biggest tax surprise in April.
What reduces FICA, and what doesn't
Section 125 cafeteria-plan deductions skip FICA entirely: employer health, dental and vision premiums, payroll HSA contributions, and FSA contributions. $6,000 of premiums on a $60,000 salary cuts FICA from $4,590 to $4,131, saving $459 on top of the income tax savings.
Traditional 401(k), 403(b) and 457 contributions do not reduce FICA. They lower income tax only, so your 401(k) money still has 7.65% taken out going in. The OBBBA tips and overtime deductions don't reduce FICA either; they apply to federal income tax only. Tips and overtime pay are taxed for Social Security and Medicare like any other wages.
Employee FICA
FICA = 6.2% × min(wages, $184,500) + 1.45% × wages + 0.9% × max(wages − threshold, 0)
- Wages = gross pay minus Section 125 deductions
- Threshold = $200,000 single / $250,000 joint
- Self-employed: 12.4% and 2.9% on 92.35% of net profit
Common mistakes this calculator helps you avoid
- ✕Assuming 401(k) contributions lower FICA. They lower income tax only.
- ✕Applying 6.2% Social Security above $184,500. Social Security stops at the wage base; Medicare doesn't.
- ✕Forgetting that self-employed people pay 15.3%, not 7.65%, and on 92.35% of net profit, not 100%.
- ✕Counting on two jobs' employers to stop at the cap. Each employer withholds up to $184,500 separately; you reclaim the excess on your return.
- ✕Ignoring Additional Medicare when both spouses earn under $200,000 but their combined pay is over $250,000.
Key terms
- FICA
- Federal Insurance Contributions Act: the law behind Social Security and Medicare payroll taxes.
- OASDI
- Old-Age, Survivors and Disability Insurance, the official name for Social Security tax.
- Wage base
- The annual cap on wages subject to Social Security tax: $184,500 in 2026.
- Section 125
- A cafeteria plan that lets health premiums, HSA and FSA contributions skip both income tax and FICA.
- SE tax
- Self-employment tax: both halves of FICA (15.3%) on 92.35% of net self-employment profit.
Frequently asked questions
+What is the FICA tax rate for 2026?
7.65% for employees: 6.2% Social Security on wages up to $184,500 and 1.45% Medicare on all wages, plus 0.9% Additional Medicare on wages over $200,000 ($250,000 married filing jointly). Self-employed people pay 15.3%.
+What is the maximum Social Security tax in 2026?
$11,439 for an employee (6.2% of the $184,500 wage base) and $22,878 for a self-employed person, who pays both halves.
+Is OASDI the same as Social Security?
Yes. OASDI (Old-Age, Survivors and Disability Insurance) is the official name for Social Security tax, and many pay stubs label it that way. Medicare may appear as 'Med' or 'HI' (Hospital Insurance).
+Does a 401(k) contribution reduce FICA?
No. Traditional 401(k) contributions reduce federal and most state income tax, but Social Security and Medicare are still charged on that money. Health premiums and HSA contributions through a cafeteria plan do reduce FICA.
+Can I get FICA refunded?
If you worked two or more jobs and total Social Security withheld exceeded $11,439, you claim the excess as a credit on your tax return. If a single employer over-withheld, ask that employer to correct it. Nonresident students on F-1 or J-1 visas are often exempt and can ask the employer for a refund.
+Do I pay FICA on tips and overtime?
Yes. The 2025–2028 'no tax on tips' and 'no tax on overtime' deductions only reduce federal income tax. Tips and overtime are still subject to the full 7.65% FICA.