Social Security tax is a 6.2% tax on your wages, withheld from every paycheck up to an annual limit of $184,500 in 2026. Your employer pays another 6.2% on the same wages. If you're self-employed, you pay both halves yourself, for a total of 12.4%.
It's one half of FICA, alongside Medicare. This guide covers what Social Security tax applies to, how to check it on your pay stub, how benefits like health insurance change it, and how the self-employed version differs.
Social Security tax at a glance (2026)
| Item | Employee | Employer | Self-employed |
|---|---|---|---|
| Rate | 6.2% | 6.2% | 12.4% (on 92.35% of net earnings) |
| Wage limit | $184,500 | $184,500 | $184,500 |
| Maximum tax | $11,439 | $11,439 | Depends on earnings and any wages |
| How it's paid | Payroll withholding | Paid with payroll taxes | Estimated taxes and annual return |
The money goes to the Social Security trust funds, which pay retirement, disability and survivor benefits. Paying the tax also earns you work credits toward eligibility for those benefits. The Social Security Administration explains how credits and benefit amounts work.
What wages are subject to Social Security tax
Social Security tax applies to most cash pay from an employer:
- Regular salary and hourly wages
- Overtime, bonuses and commissions
- Reported tips
- Paid time off, holiday and sick pay
- Most taxable fringe benefits
Some pre-tax deductions reduce the wages it applies to, and some don't:
- Reduce Social Security wages: health, dental and vision premiums paid through a cafeteria plan; HSA contributions through payroll; many FSA contributions.
- Don't reduce Social Security wages: traditional 401(k), 403(b) and 457 deferrals. These lower income tax but not FICA.
Our guide to pre-tax vs after-tax deductions lists which deductions affect which taxes.
Example: $38 an hour in Arizona
A single filer in Arizona earns $38 an hour for 40 hours a week, paid biweekly. That's $3,040 per paycheck, or $79,040 a year. Estimates from the Arizona paycheck calculator:
| Item | No benefits | With $110 health premium |
|---|---|---|
| Gross pay | $3,040.00 | $3,040.00 |
| Social Security wages | $3,040.00 | $2,930.00 |
| Social Security tax (6.2%) | $188.48 | $181.66 |
| Medicare (1.45%) | $44.08 | $42.49 |
| Federal income tax | $329.18 | $304.98 |
| Arizona income tax (2.5%) | $67.97 | $65.22 |
| Take-home pay | $2,410.29 | $2,335.65 |
The pre-tax health premium cuts Social Security tax by $6.82 per paycheck ($110 × 6.2%), about $177 a year. If the same $110 went to a traditional 401(k) instead, income tax would drop but Social Security tax would stay at $188.48.
Over a full year, this worker pays $4,900.48 in Social Security tax with no benefits. The employer pays the same amount on top, so $9,800.96 goes to Social Security on this worker's behalf.
Checking Social Security tax on your pay stub
Look for a line labeled Social Security, SS, OASDI or FICA-SS. To check it:
- Find your Social Security wages (or start with gross pay and subtract health, dental, vision and HSA deductions).
- Multiply by 6.2%.
- Compare with the amount withheld. A difference of a cent or two is just rounding.
If the year-to-date Social Security line is getting close to $11,439, you're near the wage base and withholding will stop for the rest of the year. Read what the Social Security wage base is to see when that happens.
Social Security tax for the self-employed
Freelancers, contractors and sole proprietors pay Social Security through self-employment tax. The calculation:
- Multiply net self-employment earnings by 92.35%.
- Apply 12.4% for Social Security (up to the $184,500 wage base) and 2.9% for Medicare.
If the Arizona worker above earned $79,040 as a self-employed contractor instead, net earnings subject to self-employment tax would be $72,993.44. The Social Security part would be $9,051.19, and the Medicare part $2,116.81, for $11,168 in total self-employment tax.
That's less than the $9,800.96 plus $2,292.16 that a W-2 worker and employer pay together, because of the 92.35% factor. But it's more than double what comes out of the W-2 worker's own pay. Self-employed people can also deduct the employer-equivalent half of self-employment tax when figuring income tax. See 1099 vs W-2 take-home pay for a side-by-side comparison.
Two jobs and the wage base
Each employer withholds Social Security on up to $184,500 of the wages it pays, without knowing what other employers paid you. If you have two jobs, or change jobs during the year, and your combined wages pass $184,500, more than $11,439 may be withheld in total.
You can claim the excess as a credit on your federal income tax return. Employers don't get their extra share back, though; each employer's 6.2% match stands on its own.
Social Security tax vs taxes on Social Security benefits
These get mixed up. Social Security tax is what workers pay in through payroll. Separately, some people who receive Social Security benefits owe federal income tax on part of those benefits, depending on their other income. The IRS and SSA explain the rules for benefit taxation; they don't affect what's withheld from a regular paycheck.
To see Social Security tax alongside your other withholding, enter your pay in the paycheck calculator. It works the same in every state, including no-tax states like Nevada. For the bigger picture, see what FICA tax is.
Frequently Asked Questions
What is the Social Security tax rate for 2026?
Employees pay 6.2% of wages up to $184,500, and employers pay a matching 6.2%. Self-employed people pay 12.4% on 92.35% of net self-employment earnings, up to the same limit.
Can I opt out of Social Security tax?
Generally no. A W-4 only affects federal income tax withholding. A few narrow groups are exempt under federal law, and IRS Publication 15 lists them.
Why did my Social Security tax stop late in the year?
Your year-to-date wages from that employer reached the $184,500 wage base. Withholding restarts with your first paycheck of the new year.
Does a 401(k) contribution lower Social Security tax?
No. Traditional 401(k) deferrals are still subject to Social Security and Medicare tax. Pre-tax health premiums and HSA contributions through payroll do reduce it.
Sources
- SSA: Contribution and Benefit Base
- IRS Topic 751: Social Security and Medicare Withholding Rates
- IRS: Self-Employment Tax (Social Security and Medicare Taxes)
- IRS Publication 15, Employer's Tax Guide
Run the numbers for your state
Written and checked against IRS, Social Security Administration and state tax agency publications for the 2026 tax year. General information, not tax, legal or financial advice. Read our editorial policy, calculation methodology and sources.