FICA (Federal Insurance Contributions Act) tax funds Social Security and Medicare. In 2026: Social Security is 6.2% on wages up to })}}/>76,100, and Medicare is 1.45% on all wages. Employers match these amounts.

Can I avoid paying FICA tax?

Most employees cannot avoid FICA. Exceptions include some government employees, certain student workers, and self-employed workers who pay both the employee and employer portions (15.3% self-employment tax).

What is the FICA wage base limit in 2026?

The Social Security wage base is })}}/>76,100 in 2026. You stop paying the 6.2% Social Security tax once your earnings exceed this amount. The 1.45% Medicare tax has no cap — high earners also pay an extra 0.9% above />00,000.

Home › Blog › What is FICA Tax

BASICS

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

January 28, 2026 · 4 min read

Social Security

6.2%

On first $176,100

Medicare

1.45%

No wage cap

Total FICA

7.65%

Employee share

Employer Match

7.65%

They pay same

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 $176,100. Once you earn $176,100 in a year, Social Security tax stops. A worker earning $200,000 pays SS tax on only the first $176,100 = $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.

Example: $75,000 salary
Social Security: $75,000 × 6.2% = $4,650/year
Medicare: $75,000 × 1.45% = $1,087.50/year
Total FICA: $5,737.50/year = $220.67/biweekly

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.

Open Paycheck Calculator →