Every pay stub in America has a line labeled “FICA,” quietly taking 7.65% of your wages. FICA – the Federal Insurance Contributions Act – funds Social Security and Medicare. Unlike income tax, it’s a flat rate with almost no deductions, and your employer matches what you pay. Here’s exactly how it works and how to calculate it.
To see FICA’s impact on your own paycheck, run your salary through our free salary calculator.
The Two Parts of FICA
FICA has two components with different rules:
| Component | Employee rate | What it funds | Wage cap (2026) |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | Retirement, disability, survivor benefits | $184,500 |
| Medicare (HI) | 1.45% | Hospital insurance for 65+ | No cap |
| Combined | 7.65% |
Your employer pays a matching 6.2% + 1.45% on your behalf, so the total flowing to the government is 15.3% of your wages. If you’re self-employed, you pay both halves yourself (12.4% + 2.9% = 15.3%) as self-employment tax, though you can deduct half of it from income tax.
Social Security Tax: The 6.2% with a Cap
Social Security tax applies only to earnings up to the annual wage base – $184,500 in 2026 (up from $176,100 in 2025). Earn more than that, and the 6.2% stops.
Example: you earn $60,000. Social Security tax = 6.2% × $60,000 = $3,720.
Example: you earn $200,000. Social Security tax = 6.2% × $184,500 = $11,439 – the maximum any employee pays in 2026. The remaining $15,500 is exempt from Social Security tax.
Medicare Tax: 1.45% with No Cap
Medicare’s hospital insurance tax has no wage limit – every dollar of wages is taxed at 1.45%. On $60,000, that’s $870. On $500,000, it’s $7,250.
The Additional Medicare Tax (0.9%)
High earners pay an extra 0.9% Medicare surtax on wages above $200,000 (single filers) or $250,000 (married filing jointly). Unlike regular FICA, the employer does not match this. On a $250,000 single-filer salary:
- Regular Medicare: 1.45% × $250,000 = $3,625
- Additional Medicare: 0.9% × $50,000 = $450
- Total Medicare: $4,075
Complete FICA Calculation Examples
$50,000 salary (single):
- Social Security: 6.2% × $50,000 = $3,100
- Medicare: 1.45% × $50,000 = $725
- Total FICA: $3,825 (7.65% effective)
$150,000 salary (single):
- Social Security: 6.2% × $150,000 = $9,300
- Medicare: 1.45% × $150,000 = $2,175
- Total FICA: $11,475 (7.65% effective)
$300,000 salary (single):
- Social Security: 6.2% × $184,500 = $11,439 (capped)
- Medicare: 1.45% × $300,000 = $4,350
- Additional Medicare: 0.9% × $100,000 = $900
- Total FICA: $16,689 (5.56% effective – the cap makes it regressive at the top)
What Do You Get for FICA Taxes?
Social Security taxes earn you “credits” toward retirement, disability, and survivor benefits – you need 40 credits (about 10 years of work) to qualify for retirement benefits. Your benefit amount is based on your 35 highest-earning years. Medicare taxes qualify you for premium-free Part A hospital coverage at age 65 after 10 years of covered work.
FICA vs Income Tax on Your Pay Stub
Your pay stub lists FICA separately from federal withholding for a reason: they work completely differently. FICA is flat – 7.65% from the first dollar, with no standard deduction and no brackets. Income tax is progressive, with the standard deduction shielding your first $16,100 (single, 2026) entirely. That’s why a low earner might owe zero income tax but still pays full FICA on every paycheck.
This also means FICA hits hardest, proportionally, at lower incomes. Someone earning $30,000 pays the full 7.65% ($2,295), while someone earning $300,000 pays an effective FICA rate of only about 5.6% thanks to the Social Security wage cap. See how FICA compares to your total tax picture with our salary calculator.
Frequently Asked Questions
Is FICA the same as federal income tax?
No. FICA is a separate payroll tax dedicated to Social Security and Medicare. Income tax goes to general government revenue and uses progressive brackets.
Do bonuses and commissions count for FICA?
Yes. Supplemental wages are subject to both Social Security (up to the cap) and Medicare taxes.
Can I get a refund of excess Social Security tax?
If you worked two jobs and combined earnings exceeded $184,500, you may have overpaid. You can claim the excess as a credit on your tax return.
Do pre-tax 401(k) contributions reduce FICA?
No. 401(k) elective deferrals reduce income tax but not Social Security or Medicare wages. HSA contributions through payroll and health premiums do reduce FICA wages.
What is the FICA rate for self-employed workers?
15.3% total: 12.4% Social Security (up to the wage base) plus 2.9% Medicare, with an additional 0.9% Medicare surtax above the thresholds. Half is deductible from income tax.
*This article is for general information only and is not tax advice. Verify current rates with IRS guidance.*
