FICA Tax Explained: Where 7.65% of Your Pay Goes
The 7.65% that disappears from every paycheck, and where it stops.
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Marcus Ellery Senior editor, tax and payrollMarcus edits the tax and paycheck desks, and owns the federal figures every calculator on the site reads from.
FICA is the payroll tax funding Social Security and Medicare. Employees pay 6.2% for Social Security on wages up to $184,500 in 2026, plus 1.45% for Medicare with no cap, 7.65% in total. Employers match both. Self-employed people pay both halves, 15.3%.
The short version
- FICA is two taxes: 6.2% for Social Security and 1.45% for Medicare, a combined 7.65% withheld from the employee and matched by the employer.
- Social Security stops at the wage base, which is $184,500 for 2026, capping the employee's Social Security tax at $11,439.00 a year.
- Medicare has no ceiling, and an extra 0.9% applies to wages above $200,000 for a single filer or $250,000 for a couple filing jointly.
- Self-employed people pay both halves at 15.3%, but only on 92.35% of net earnings, and can deduct half of the resulting tax.
- Because Social Security is capped, a worker on $250,000 pays an effective FICA rate of 6.21% while a worker on $50,000 pays 7.65%.
Key figures · 2026
- Employee FICA rate
- 7.65%
- SSA
- Social Security wage base
- $184,500
- SSA
- Self-employment rate
- 15.3%
- IRS
- Additional Medicare threshold
- $200,000
- IRS
Contents
What is FICA?
FICA is the Federal Insurance Contributions Act tax. It funds two programmes and comes out of every paycheck before you see it.
| Component | Employee rate | Employer rate | Cap |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 of wages |
| Medicare | 1.45% | 1.45% | None |
| Additional Medicare | 0.9% | n/a | Applies above $200,000 |
When does Social Security tax stop?
Once your wages for the year reach $184,500, Social Security tax stops for the rest of that year. Medicare does not stop. It applies to every dollar.
This is why high earners see their take-home pay rise part-way through the year. Nothing changed about their salary; the 6.2% simply stopped applying.
What is the Additional Medicare Tax?
An extra 0.9% on wages above $200,000 for single filers and $250,000 for married couples filing jointly. Employers do not match it. It is entirely the employee's.
Why do self-employed people pay 15.3%?
Because they are both the employer and the employee, so they owe both halves. The rate is 15.3% of net earnings: 12.4% Social Security plus 2.9% Medicare.
The sting is softened two ways. You calculate it on 92.35% of net earnings rather than the full amount, and you deduct the employer-equivalent half against your income tax.
Can I avoid FICA?
Not on wages. Pre-tax deductions that reduce income tax often do not reduce FICA. A traditional 401(k) contribution still has FICA applied. Section 125 benefits such as health premiums are one of the few categories that reduce both.
Frequently asked questions
What is the FICA rate for 2026?
7.65% for employees, 6.2% Social Security plus 1.45% Medicare. Employers match both halves.
When does Social Security tax stop?
Once your wages reach $184,500 in a calendar year. Medicare has no cap and continues on every dollar.
Do self-employed people pay more?
They pay 15.3% because they owe both halves, but half of it is deductible against income tax.
Does a 401(k) contribution reduce FICA?
No. Traditional 401(k) deferrals reduce income tax but FICA still applies to the full wage.
What is the Additional Medicare Tax?
An extra 0.9% on wages above $200,000 for single filers or $250,000 for joint filers. The employer does not match it.
Do I get FICA back?
No, it is not refundable. It buys future Social Security and Medicare entitlement rather than being a prepayment of income tax.
Sources
Every figure on this page is attributed to a named source with the date it took effect. Our reviewers check them against the primary source before publication.
About our expert
Senior editor, tax and payroll
Experience
Marcus edits everything on this site that turns on a federal or state tax figure: brackets, standard deductions, withholding thresholds, FICA caps and the state rate tables behind the paycheck tools.
His working rule is that a number appears on a page only if it also exists in the data layer with a source and an effective date attached, so an article and the calculator beside it can never disagree.
Areas of expertise
- Federal tax
- State income tax
- Payroll withholding
- FICA
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