FICA is the line on your pay stub that funds Social Security and Medicare. It is taken from almost every paycheck, and unlike income tax it does not depend on your W-4 answers. Here is how it is calculated for 2026.
What FICA stands for
FICA is the Federal Insurance Contributions Act. It covers two separate taxes: Social Security (old-age, survivors and disability insurance) and Medicare (hospital insurance).
2026 FICA rates
| Tax | Employee rate | Employer rate | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | First $184,500 of wages in 2026 |
| Medicare | 1.45% | 1.45% | No limit |
| Additional Medicare Tax | 0.9% | None | Wages over $200,000 (withholding threshold) |
Together the standard employee rate is 7.65%. Your employer pays a matching 7.65%, which does not come out of your pay.
Worked examples
| Annual wages | Social Security | Medicare | Additional Medicare | Total employee FICA |
|---|---|---|---|---|
| $60,000 | $3,720 | $870 | $0 | $4,590 |
| $200,000 | $11,439 | $2,900 | $0 | $14,339 |
| $250,000 | $11,439 | $3,625 | $450 | $15,514 |
At $200,000 and $250,000, Social Security stops at $11,439 because only the first $184,500 is taxed (184,500 × 6.2%). At $250,000 the extra 0.9% Medicare applies to the $50,000 above $200,000.
Employee Social Security and Medicare at three salary levels in 2026.
When Social Security withholding stops
Once your year-to-date wages pass $184,500, your employer stops withholding Social Security for the rest of the year, so your later paychecks get larger. If you work for two employers, each one withholds up to the limit separately; any excess Social Security withheld is credited back when you file your tax return.
Does a 401(k) reduce FICA?
Traditional 401(k) contributions reduce federal income tax but not FICA. Health insurance premiums paid through a Section 125 cafeteria plan usually reduce both.
Self-employed people
If you work for yourself you pay both halves through self-employment tax (15.3% up to the wage base and 2.9% Medicare above it, calculated on 92.35% of net self-employment earnings), calculated on your tax return rather than withheld from a paycheck.
See FICA on your own paycheck
Every Tuff Search paycheck calculator shows Social Security and Medicare on separate lines, so you can compare them with your pay stub.
Important
Important: This article explains how the calculations work using 2026 federal figures. It is not tax, legal or financial advice. Your actual withholding depends on your W-4, your employer’s payroll system and your state, so check your pay stub and official IRS guidance.
Frequently asked questions
7.65% for employees: 6.2% Social Security on wages up to $184,500 plus 1.45% Medicare on all wages. An extra 0.9% Medicare applies to wages over $200,000.
$184,500. Wages above this amount are not subject to Social Security tax for the year.
Generally no, unless too much Social Security was withheld because you had more than one employer, or it was withheld in error.
No. FICA funds Social Security and Medicare and is a flat percentage. Federal income tax uses brackets and your W-4.
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