What Is FICA Tax? Social Security and Medicare Explained (2026)

FICA stands for Federal Insurance Contributions Act. It funds Social Security and Medicare. In 2026, as explained in the federal payroll methodology, employees pay 7.65% of gross wages for the regular employee share: Social Security up to the wage base and Medicare on wages.

FICA at key salary levels

Salary	Social Security withheld	Medicare withheld	Total FICA
$40,000	$2,480	$580	$3,060
$60,000	$3,720	$870	$4,590
$75,000	$4,650	$1,088	$5,738
$100,000	$6,200	$1,450	$7,650
$150,000	$9,300	$2,175	$11,475
$200,000	$11,439	$2,900	$14,339

Engine-computed Texas examples use biweekly pay and standard W-4 assumptions. Total FICA includes any modeled Additional Medicare tax where applicable.

Social Security wage base

Social Security tax only applies up to $184,500 in 2026. Income above this limit is exempt from the Social Security employee tax but still subject to regular Medicare withholding.

Additional Medicare Tax

High earners above $200,000 for a single filer can owe Additional Medicare Tax. ExactTakeHome's regular paycheck examples show the modeled withholding available in the engine, but individual tax-return liability can still depend on filing status and household income.

Employer and self-employed contributions

Employers generally match the employee Social Security and regular Medicare contributions. Self-employed workers generally pay both halves through self-employment tax, commonly summarized as 15.3% before wage-base effects and Additional Medicare tax.

FICA components on every paycheck

FICA stands for Federal Insurance Contributions Act. Employee FICA on most W-2 wages includes Social Security tax at 6.2% of gross up to the annual wage base and Medicare tax at 1.45% on all covered wages. Employers pay a matching Social Security and Medicare amount — that employer share does not reduce your net pay but appears on payroll reports.

Social Security wage base

Social Security tax applies only up to the annual wage base set by the SSA for each tax year. Wages above that cap in the same year stop accruing Social Security tax for the remainder of the year. Medicare has no wage cap for the base 1.45% rate.

Additional Medicare tax

Employees with wages above IRS thresholds may owe additional Medicare tax at 0.9% on wages above the threshold. Single filers hit this above $200,000 in wages; married filing jointly uses a higher combined threshold. Payroll systems often start additional withholding once year-to-date wages cross the threshold.

FICA vs federal income tax

Federal income tax withholding follows W-4 elections and can be zero on low wages while FICA still applies. FICA is not reduced by the standard deduction or most credits — it is calculated on gross wages before typical pre-tax 401(k) deferrals for Social Security, and on gross for Medicare in most systems.

Deep dives

• Social Security and Medicare explained
• Federal tax methodology
• Model FICA on any salary

Self-employed FICA equivalent

Self-employed workers pay Self-Employment Contributions Act (SECA) tax instead of FICA withholding — combined Social Security and Medicare on net self-employment income with different calculation mechanics. Employees see FICA on W-2 stubs; contractors see no FICA line but owe SECA quarterly.

FICA on pre-tax 401(k)

Traditional 401(k) reduces federal income tax withholding but Social Security and Medicare usually apply to gross wages before 401(k) deferral in most payroll systems. A larger 401(k) contribution does not eliminate FICA on the deferred amount.

Payroll error checks

If FICA lines disappear mid-year after hitting the Social Security wage base, that is expected — only Medicare continues. If FICA is zero on low wages, verify with payroll — that is unusual for covered employment.

Using ExactTakeHome for your situation

Every example in this guide uses engine-computed withholding from official 2026 tax tables — IRS Publication 15-T for federal income tax and state employer withholding schedules where state income tax applies. Open the paycheck calculator, select your state, enter your annual salary or hourly equivalent, and adjust filing status, pay frequency, and pre-tax deductions to match your pay stub inputs.

Salary band pages at /salary/ provide quick benchmarks at common amounts. Hourly routes at /hourly/ convert hourly rates to annual gross using 2,080 full-time hours. City guides at /city-salary/ add local wage tax when your work city levies one. Compare pairs at /compare/ when evaluating two states side by side.

Figures here are estimates for planning — not tax advice. Payroll rounding, mid-year law changes, and employer-specific benefit elections can shift your actual stub by small amounts. Consult a qualified tax professional for filing decisions and complex multi-state situations.

Frequently Asked Questions

Figures and methods are based on official-source data encoded in the calculator. Not tax advice. Review the methodology and consult a qualified professional for your situation.