Key takeaways
- FICA is two taxes: Social Security (6.2%) and Medicare (1.45%), 7.65% in total, withheld from every paycheck.
- Social Security tax stops at the 2026 wage base of $184,500. Medicare tax has no cap.
- Wages above $200,000 (single) or $250,000 (married filing jointly) owe an extra 0.9% Additional Medicare Tax.
- Your employer pays a matching 7.65%. Self-employed workers pay both halves.
FICA, named for the Federal Insurance Contributions Act, funds Social Security and Medicare. For most workers it’s a bigger bite than they expect, and unlike income tax, there’s no standard deduction: it starts with your first dollar of wages.
The 2026 rates
| Tax | Employee rate | Employer rate | Applies to |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | 1.45% | All wages |
| Additional Medicare Tax | 0.9% | None | Wages above $200,000 single / $250,000 joint |
So on a typical paycheck, 7.65% goes to FICA before income tax is even considered. Full federal payroll and income tax figures are on the 2026 tax brackets page.
What you pay at different salaries
For a single filer with one job:
| Wages | Social Security | Medicare | Additional Medicare | Total FICA | Share of wages |
|---|---|---|---|---|---|
| $50,000 | $3,100 | $725 | $0 | $3,825 | 7.65% |
| $100,000 | $6,200 | $1,450 | $0 | $7,650 | 7.65% |
| $200,000 | $11,439 | $2,900 | $0 | $14,339 | 7.17% |
| $300,000 | $11,439 | $4,350 | $900 | $16,689 | 5.56% |
Because Social Security tax stops at the wage base, FICA is a flat tax up to about $184,500 and then becomes a smaller share of pay. High earners often notice their take-home pay jump late in the year, once they pass the wage base and Social Security withholding stops.
The Additional Medicare Tax
Wages above a threshold based on filing status owe another 0.9% in Medicare tax, with no employer match. The thresholds aren’t indexed to inflation, so more people owe it each year.
Withholding and liability can differ. Employers must withhold it on wages over $200,000 regardless of your filing status, but what you actually owe depends on your household’s combined wages. A married couple where one spouse earns $230,000 and the other earns nothing would have $270 withheld but owe $0, since their joint threshold is $250,000. The difference is settled on Form 8959 with your tax return. Two-earner couples can see the opposite problem: under-withholding.
Your employer’s half
Your employer pays a matching 6.2% and 1.45% on your wages. You don’t see it on your pay stub, but it’s part of what you cost to employ. That’s one reason a 1099 contract rate should be noticeably higher than an equivalent W-2 salary: contractors pay both halves themselves through self-employment tax.
What’s exempt from FICA
- Section 125 cafeteria-plan deductions: pre-tax health, dental, and vision premiums, flexible spending accounts, and HSA contributions made through payroll.
- Some fringe benefits, such as qualified transit and parking benefits up to IRS limits.
- Certain workers, including some state and local government employees covered by a public pension instead of Social Security, some student workers employed by their school, and certain nonresident aliens.
Traditional 401(k) and 403(b) deferrals are not exempt. They reduce income tax but not FICA.
Overpaid because of two jobs?
Each employer applies the Social Security wage base separately. If you worked for two employers and your combined wages topped $184,500, too much Social Security tax was withheld. You claim the excess as a credit on your federal return. It isn’t lost, it just comes back at tax time.
Where the money goes
Social Security tax funds retirement, disability, and survivor benefits, and every covered dollar you earn (up to the wage base) builds the earnings record that sets your future benefit. Medicare tax funds hospital insurance (Medicare Part A). See when to claim Social Security for how that earnings record turns into a monthly check.