Social Security and Medicare Tax (FICA) 2026 Guide

Every paycheck, 7.65% disappears before you even see it. That’s FICA — the tax that funds Social Security retirement benefits and Medicare healthcare.

Here’s exactly how it works in 2026 and what it means for your paycheck.

2026 FICA Tax Rates

Tax	Rate	Wage Limit	Notes
Social Security	6.2%	First $176,100	Employee share
Medicare	1.45%	No limit	Employee share
Additional Medicare	0.9%	Over $200K (single)	Employee only
Employee Total	7.65%		(Up to $176,100)
Employer match	7.65%		You never see this
Combined FICA	15.3%		Both sides

The 2026 Social Security Wage Base: $176,100

Social Security tax stops at $176,100 of annual wages. On January 1 of each year, your Social Security clock resets.

Salary	Annual SS Tax	Monthly SS Tax
$50,000	$3,100	$258
$100,000	$6,200	$517
$150,000	$9,300	$775
$176,100	$10,918	$910 (max)
$200,000	$10,918	same (cap hit)
$500,000	$10,918	same (cap hit)

High earners pay the most SS tax in dollar terms, but because of the $176,100 cap, SS is effectively a regressive tax — as a percentage of income, it’s higher for lower earners.

How FICA Appears on Your Pay Stub

Look for these line items:

• Fed OASDI/EE or Social Security Tax = 6.2%
• Fed MED/EE or Medicare Tax = 1.45%
• MED-EE Addl = Additional 0.9% Medicare (if applicable)

Your employer’s matching contribution (7.65%) is paid separately and doesn’t appear on your pay stub — it’s additional cost to your employer beyond your salary.

FICA for Self-Employed Workers

If you’re self-employed, you pay BOTH the employee AND employer share:

• Self-employment tax rate: 15.3% (12.4% SS + 2.9% Medicare)
• Applied to 92.35% of net self-employment income (the 7.65% “employer” deduction)
• Deductible: You can deduct half of SE tax (7.65%) from your gross income

See our Self-Employed Tax Guide for full details.

Additional Medicare Surtax (0.9%)

High earners face an extra 0.9% Medicare surcharge:

Filing Status	Threshold
Single	$200,000
Married Filing Jointly	$250,000
Married Filing Separately	$125,000

Unlike other FICA taxes, the additional Medicare tax is calculated on your combined income at year-end. If your employer doesn’t withhold it (because they don’t know your total income), you may owe it at tax time.

What Do FICA Taxes Pay For?

Social Security (12.4% combined):

• 85% to Old-Age and Survivors Insurance (OASI) — retirement and survivor benefits
• 15% to Disability Insurance (DI) — disability benefits
• Social Security full retirement age: 67 (for those born 1960 or later)
• Maximum monthly benefit at full retirement age (2026): ~$3,822

Medicare (2.9% combined):

• Medicare Part A (hospital insurance) — inpatient, hospice, skilled nursing
• Not the same as Part B (doctor visits) or Part D (prescriptions) — those have separate premiums

FICA and Your 401(k)

A common misconception: 401(k) contributions do NOT reduce FICA. FICA is calculated on gross wages before any 401(k) deduction.

However, 401(k) contributions DO reduce your federal and state income tax withholding.

Contribution	Reduces Federal Income Tax	Reduces FICA
Traditional 401(k)	✅ Yes	❌ No
HSA	✅ Yes	✅ Yes (if through employer cafeteria plan)
Section 125 health premiums	✅ Yes	✅ Yes

Use our Paycheck Calculator to see exactly how FICA and all other taxes affect your take-home pay.