FICA Tax Explained: Rates, Limits and Examples for 2026
Social Security and Medicare taxes come out of every paycheck — but few people can say exactly how much or why. This guide breaks down the 2026 FICA rates, the $184,500 wage base and the self-employment rules with worked examples.
What Is FICA Tax?
FICA stands for the Federal Insurance Contributions Act. It is the US law behind the two payroll taxes that come out of almost every paycheck: Social Security tax and Medicare tax. Together they fund the Social Security retirement and disability programs and the Medicare health program. Unlike federal income tax, FICA is charged at flat rates from the very first dollar you earn — there is no standard deduction and no brackets.
The 2026 FICA numbers
- Social Security: 6.2% paid by you and 6.2% by your employer, but only on wages up to the 2026 wage base of $184,500 (set by the Social Security Administration). The maximum Social Security tax an employee can pay in 2026 is $11,439.00.
- Medicare: 1.45% paid by you and 1.45% by your employer, on all wages with no cap.
- Additional Medicare Tax: an extra 0.9% that only employees pay, on wages above $200,000 (single), $250,000 (married filing jointly) or $125,000 (married filing separately).
- Self-employed: you pay both halves — the combined 15.3% (SECA tax) — on 92.35% of your net self-employment earnings. Half of the SE tax is deductible on your income tax return.
Worked examples (2026)
- $85,000 salary, employee: Social Security $5,270.00 + Medicare $1,232.50 = $6,502.50 FICA for the year. Your employer pays another $6,502.50 that never appears on your pay stub as a deduction.
- $250,000 salary, single filer: Social Security stops at the cap ($11,439.00), Medicare is $3,625.00, and the Additional Medicare Tax adds $450.00 on the $50,000 above $200,000 — total $15,514.00.
- $100,000 net self-employment income: FICA applies to 92.35% of it ($92,350), so SE tax is about $14,128 before the income-tax deduction for half of it.
Run your own numbers with our free FICA Calculator, or see your full take-home pay — federal, FICA and state tax combined — in the Paycheck Calculator.
Why your paycheck can grow late in the year
If your year-to-date wages pass $184,500, your employer stops withholding the 6.2% Social Security tax for the rest of the year. Medicare withholding continues. High earners often notice a bigger paycheck in the autumn for exactly this reason — it is not a bonus, it is the wage base doing its job.
FICA vs. income tax: the difference
Income tax is graduated (10%–37% in 2026), applies after deductions, and is reconciled on your tax return — overpay and you get a refund. FICA is flat, applies from dollar one, and is never refunded (except in rare cases such as paying Social Security tax to two employers beyond the cap, which is claimed as a credit on your return).
Frequently Asked Questions
What does FICA stand for?
FICA stands for the Federal Insurance Contributions Act, the law that created the Social Security and Medicare payroll taxes withheld from US paychecks.
What is the FICA rate in 2026?
Employees pay 7.65% (6.2% Social Security on wages up to $184,500 plus 1.45% Medicare on all wages), with an extra 0.9% Medicare tax on high wages. Employers match the 7.65%. The self-employed pay the combined 15.3% on 92.35% of net earnings.
Is there a cap on FICA tax?
Only the Social Security part is capped: it applies to the first $184,500 of wages in 2026, so the most an employee pays is $11,439.00. Medicare tax has no cap.