What is FICA Tax? Social Security & Medicare Explained (2026)

Quick answer: FICA tax in 2026 = 7.65% of gross wages: 6.2% Social Security (on first $184,500) + 1.45% Medicare (no limit). On $60,000 gross, you pay $4,590 FICA/year. Your employer matches this amount. Self-employed pay 15.3% (both halves).

FICA stands for the Federal Insurance Contributions Act. It funds two programs: Social Security (retirement, disability, survivors benefits) and Medicare (health insurance for people 65+). Unlike federal income tax, FICA is flat — the same percentage regardless of income.

How FICA is Calculated in 2026

Social Security: 6.2% on wages up to $184,500. Once you earn $184,500 in a year, Social Security tax stops. A worker earning $200,000 pays SS tax on only the first $184,500 = $10,918.20 total.

Medicare: 1.45% on ALL wages with no cap. High earners (over $200k single / $250k married) also pay an additional 0.9% Additional Medicare Tax, for a total of 2.35% on income above the threshold.

Your Employer Pays the Same Amount

For every dollar of FICA you pay, your employer pays an equal amount. So on a $75,000 salary, you pay $5,737 and your employer pays another $5,737 — total $11,475 goes to Social Security and Medicare on your behalf. Self-employed workers pay both sides: the full 15.3% (but can deduct half).

Can You Reduce FICA?

Unlike federal income tax, FICA cannot be reduced by 401(k) contributions, the standard deduction, or most other deductions. However, HSA contributions made through payroll (pre-tax via employer's Section 125 plan) DO reduce FICA. This is one reason employer-sponsored HSA contributions are particularly valuable.

FICA for Self-Employed Workers

Self-employed people pay the full 15.3% self-employment tax (both employee and employer share). However, they can deduct 50% of self-employment tax from their federal taxable income, partially offsetting the burden.

See Your FICA on Your Paycheck

Our calculator shows Social Security and Medicare separately.