FICA tax is the combined Social Security and Medicare tax withheld from your wages. FICA stands for the Federal Insurance Contributions Act, and in 2026 it takes 7.65% of most employees' pay: 6.2% for Social Security and 1.45% for Medicare. Your employer pays a matching 7.65% on top.
Unlike income tax, FICA doesn't depend on your W-4, filing status or dependents. It's a flat percentage of covered wages, with a cap on the Social Security part and an extra tax for high earners on the Medicare part. If you've wondered what is FICA tax and why it shows up as two lines on your pay stub, here's how it works.
The two parts of FICA
| Tax | Employee rate | Employer rate | Wage limit (2026) |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | First $184,500 of wages |
| Medicare | 1.45% | 1.45% | No limit |
| Additional Medicare Tax | 0.9% | None | Withheld on wages over $200,000 |
Social Security funds retirement, disability and survivor benefits. Your pay stub may label it "OASDI," short for Old-Age, Survivors, and Disability Insurance. Medicare funds hospital insurance for people 65 and older and some people with disabilities. Our guides to Social Security tax and Medicare tax go deeper on each.
How FICA is calculated on your paycheck
FICA applies to your gross wages minus certain pre-tax deductions. Here's what counts:
- Reduces FICA wages: health, dental and vision premiums under a cafeteria plan, and HSA contributions made through payroll.
- Doesn't reduce FICA wages: traditional 401(k), 403(b) and 457 deferrals. You avoid income tax on these now, but still pay Social Security and Medicare on them.
- Included in FICA wages: overtime, bonuses, commissions, reported tips and most taxable fringe benefits.
Multiply your FICA wages by 6.2% for Social Security and 1.45% for Medicare. There's no standard deduction and no minimum, so FICA starts with your first dollar of pay.
Example: $48,000 salary, paid weekly
A single filer in Tennessee earns $48,000 a year, paid weekly, with no pre-tax deductions. Tennessee doesn't tax wages, so FICA and federal income tax are the only taxes. Estimates from the Tennessee paycheck calculator:
| Item | Per week | Per year |
|---|---|---|
| Gross pay | $923.08 | $48,000 |
| Social Security (6.2%) | $57.23 | $2,976 |
| Medicare (1.45%) | $13.38 | $696 |
| Federal income tax | $68.85 | $3,580 |
| Take-home pay | $783.62 | $40,748 |
For this worker, FICA ($3,672 a year) is actually slightly larger than federal income tax. That's common for low and middle earners, because the standard deduction shields part of their pay from income tax but not from FICA. Their employer pays another $3,672 that never appears in their check.
Example: $230,000 salary, where the limits kick in
Now a single filer in the same state earning $230,000. Three things change:
- Social Security stops at the wage base. Only the first $184,500 is taxed: $184,500 × 6.2% = $11,439 for the year. The remaining $45,500 of wages has no Social Security tax.
- Medicare has no cap. All $230,000 is taxed at 1.45%: $3,335.
- Additional Medicare Tax applies. The employer withholds 0.9% on wages over $200,000: $30,000 × 0.9% = $270.
Total employee FICA: $15,044, or about 6.5% of salary rather than 7.65%. The employer pays $11,439 for Social Security and $3,335 for Medicare, but nothing toward the Additional Medicare Tax, which is employee-only.
In real payroll, Social Security comes out of every check until year-to-date wages reach $184,500, then stops. Our calculator spreads it evenly across the year, so its per-paycheck figures for high earners are an average. See the Social Security wage base for when withholding stops.
Additional Medicare Tax and filing status
Employers must start withholding the extra 0.9% once your wages from them pass $200,000 in a year, no matter your filing status. But the amount you actually owe depends on your filing status and combined wages:
- $200,000 for single and head of household filers
- $250,000 for married couples filing jointly
- $125,000 for married filing separately
So a married couple where each spouse earns $150,000 owes Additional Medicare Tax on $50,000, even though neither employer withheld it. Any difference is settled on your federal tax return.
FICA for the self-employed
If you work for yourself, you pay both halves through self-employment tax instead of FICA withholding: 15.3% (12.4% Social Security plus 2.9% Medicare) on 92.35% of your net self-employment earnings. The Social Security part still stops at the wage base. You pay it through estimated taxes and your annual return. Read self-employment tax explained for the full calculation.
Who doesn't pay FICA
Most employees pay FICA, but federal law exempts some workers from part or all of it, such as certain students working for their own school, some state and local government workers covered by a separate retirement system, and certain nonresident workers. If you think you're exempt, check IRS Publication 15 or with your employer's payroll team. FICA can't be turned off with a W-4.
To see FICA alongside income tax for your salary and state, try the paycheck calculator, or compare a state with income tax using the Oregon paycheck calculator.
Frequently Asked Questions
Is FICA the same as federal income tax?
No. FICA is Social Security and Medicare at fixed rates. Federal income tax is a separate withholding based on your W-4 and the tax brackets.
Do I get FICA back in my tax refund?
Generally not, because FICA isn't a prepayment of income tax. The exception is when you have two or more employers and your combined Social Security withholding exceeds the cap; the excess can be claimed on your federal return.
Does my 401(k) reduce FICA?
No. Traditional 401(k) contributions lower your income tax wages but not your Social Security and Medicare wages.
What is the FICA rate for 2026?
The employee rate is 7.65%: 6.2% Social Security on wages up to $184,500 and 1.45% Medicare on all wages, plus 0.9% Additional Medicare Tax withheld on wages over $200,000.
Sources
- IRS Topic 751: Social Security and Medicare Withholding Rates
- IRS Topic 560: Additional Medicare Tax
- SSA: Contribution and Benefit Base
- 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.