Social Security and Medicare Tax on Your Paycheck: How FICA Works (2026)
Every paycheck in America has a line for Social Security and another for Medicare, often labeled FICA, OASDI or Med. Together they take 7.65% of most workers' wages, and unlike income tax they do not depend on your filing status, dependents or the W-4 you filled out. This guide explains how the two payroll taxes work in 2026, when they stop, what changes for high earners, and what happens when you have more than one job or work for yourself.
Use it with the Social Security and Medicare tax calculator on this site to see the figures for your own pay.
In this guide:
- What FICA is and who pays it
- The 2026 Social Security wage base
- Additional Medicare Tax
- Worked example at three salaries
- Two or more jobs
- Self-employed workers
- Payroll tax holidays, corrections and refunds
- Tips, bonuses and other pay subject to FICA
- What you get for the tax
- Common paycheck questions about FICA
- FICA on each paycheck at common salaries
- Checking your Social Security earnings record
- Why FICA does not change with your W-4
- FICA for household and seasonal workers
- Frequently Asked Questions
1. What FICA is and who pays it
FICA stands for the Federal Insurance Contributions Act. It funds Social Security retirement, survivor and disability benefits, and Medicare hospital insurance. The tax is split between employee and employer. Each pays 6.2% for Social Security and 1.45% for Medicare, so the total on every wage dollar is 15.3%, with half hidden from the employee.
The employee half appears on the pay stub as a deduction. The employer half is a cost of employing you and does not reduce your pay, but it is one reason a self-employed person pays more, since they pay both halves.
Almost all employees are covered. A few groups, such as some state and local government workers with their own retirement systems, do not pay Social Security tax, and nonresident students on certain visas may be exempt. Check with your employer if your stub has no FICA line.
2. The 2026 Social Security wage base
Social Security tax applies only up to an annual limit called the wage base. For 2026 it is $184,500. Wages above that are not subject to the 6.2% tax, so the maximum Social Security tax an employee pays is about $11,439 for the year, and the tax stops for the rest of the year once your earnings reach the cap.
This creates a small raise in the final months of the year for high earners, whose take-home pay increases once the tax stops. The wage base is adjusted each year based on average wage growth, so it usually rises.
Medicare has no wage base. The 1.45% rate applies to every dollar, including high salaries and bonuses.
3. Additional Medicare Tax
Higher earners owe an extra 0.9% Medicare tax on wages above certain thresholds: $200,000 for single filers and heads of household, $250,000 for married couples filing jointly and $125,000 for married filing separately. Employers begin to withhold it once your wages pass $200,000, regardless of your filing status, and the employer does not pay a match on this portion.
Because the withholding threshold does not depend on your status, married couples may have too little or too much withheld. If both spouses earn $150,000, neither employer withholds the extra tax, but the couple owes it on the amount above $250,000 combined. You reconcile the difference on Form 8959 with your tax return.
This tax is separate from the Net Investment Income Tax, which applies to investment income above the same thresholds.
4. Worked example at three salaries
At $50,000, Social Security is $3,100 and Medicare is $725, so FICA totals $3,825, or 7.65% of pay. At $100,000 it is $6,200 plus $1,450, or $7,650. At $200,000, Social Security is capped at $11,439 on the first $184,500 of wages and Medicare is $2,900, for a total of about $14,339, or 7.2% of pay, and the 0.9% additional tax begins above $200,000.
Notice that FICA is not affected by a traditional 401(k) contribution, so a worker who contributes $10,000 still pays FICA on the full wages. Pre-tax health premiums through a cafeteria plan, HSA contributions through payroll and some commuter benefits do reduce FICA wages.
Try your own salary in the Social Security and Medicare tax calculator to see the annual and per-paycheck amounts.
5. Two or more jobs
The wage base applies to each employer separately for withholding. If you earn $120,000 at one job and $100,000 at another, each employer withholds Social Security on the full amount, for a total wage of $220,000, which is above the wage base. You will have paid too much Social Security tax, and the excess, in this example the 6.2% on $35,500, or about $2,200, is claimed as a credit on Schedule 3 of your tax return.
If both employers are related and use a common paymaster, the wage base is combined automatically. In most cases this refund only applies to employees, not the employer's half, which the employer does not refund.
Medicare and Additional Medicare Tax continue to apply to combined wages, so high earners with two jobs should review their withholding.
6. Self-employed workers
Self-employed people pay both halves of FICA as self-employment tax, 15.3% on 92.35% of net earnings, up to the wage base for the Social Security part. Half of the tax is deductible for income tax purposes. Net earnings under $400 are not subject to the tax.
Contractors pay this tax on quarterly estimates or with their return. The result is that a freelancer needs to earn more than an employee to take home the same amount. See the W-2 versus 1099 guide on this site for a full comparison.
Some clergy, some farm workers and certain other groups have special rules, so check IRS guidance if your situation is unusual.
7. Payroll tax holidays, corrections and refunds
Payroll tax rates are set by law and rarely change, but Congress has cut the employee rate temporarily in the past, and any future change would show up on your stub as a lower percentage for the period. Outside such a change, the rate on your stub should always be 6.2% and 1.45% for the employee share.
If your employer withheld too much, for example by continuing to withhold Social Security after you reached the wage base at a single job, ask the employer to refund it, since they can correct it on the payroll return. If the employer will not, file Form 843 or claim the credit on your return, depending on the situation. Keep your last pay stub of the year, since it shows the year-to-date totals.
8. Tips, bonuses and other pay subject to FICA
Nearly all forms of cash pay are subject to FICA: overtime, bonuses, commissions, vacation payout, severance and tips. Tips are subject to Social Security and Medicare tax, and workers must report them to the employer if they receive $20 or more in a month. Some benefits are not subject to FICA, such as qualifying employer-paid health insurance and certain reimbursements under an accountable plan.
The new federal deduction for qualified tips and overtime affects income tax only, not FICA, so FICA still applies to the full amount. See the no tax on tips and overtime calculator on this site for the income tax side.
9. What you get for the tax
Social Security benefits are based on your highest 35 years of indexed earnings, and you earn credits by working: one credit for each amount of earnings, up to four per year, and you need 40 credits, roughly ten years of work, to qualify for retirement benefits. Earnings above the wage base do not count toward benefits, which is why the cap applies to both tax and benefits.
Medicare Part A hospital insurance is usually free at age 65 for people with 40 credits. You can check your earnings record and estimated benefits by creating an account at ssa.gov and make sure your reported wages are correct each year.
If your pay stub shows wages that do not match your W-2 or your Social Security record, ask your employer's payroll department to correct the error.
10. Common paycheck questions about FICA
Why did my Social Security tax stop mid-year? Because you reached the $184,500 wage base. Why is my Medicare tax higher than 1.45%? You may have crossed $200,000 and the extra 0.9% began. Why do I see no FICA at all? You may be an exempt worker, a student under certain rules, or covered by a different system. Can I reduce FICA? Only through certain pre-tax benefits such as a cafeteria plan; a traditional 401(k) does not reduce FICA.
If you believe too much has been withheld, first confirm your total wages across employers and then ask your employer or tax preparer. For most people, FICA is simple and predictable, and the best use of the knowledge is to understand the pay stub and plan around the small change in take-home pay for high earners at the wage base.
11. FICA on each paycheck at common salaries
Employee Social Security and Medicare per biweekly paycheck in 2026:
| Salary | Social Security per check | Medicare per check | Total per check | Total per year |
|---|---|---|---|---|
| $35,000 | $83.46 | $19.52 | $102.98 | $2,678 |
| $50,000 | $119.23 | $27.88 | $147.12 | $3,825 |
| $65,000 | $155.00 | $36.25 | $191.25 | $4,972 |
| $85,000 | $202.69 | $47.40 | $250.10 | $6,502 |
| $120,000 | $286.15 | $66.92 | $353.08 | $9,180 |
| $160,000 | $381.54 | $89.23 | $470.77 | $12,240 |
Above $184,500 of wages in the year, Social Security stops for the rest of that year, and above $200,000 an extra 0.9% Medicare is withheld.
12. Checking your Social Security earnings record
The wages your employer reports for Social Security become your earnings record, which determines your future benefits. Create a my Social Security account at ssa.gov to review it. Compare the yearly totals with box 3 of your W-2s; if a year is missing or too low, contact the Social Security Administration with your W-2 or pay stubs. Errors are easiest to fix within about three years, three months and 15 days of the year in question, so check every few years.
13. Why FICA does not change with your W-4
Form W-4 controls federal income tax withholding only. Social Security and Medicare are fixed percentages of covered wages, so no W-4 setting, filing status or number of dependents changes them. The only ways your FICA amount changes are a different wage, Section 125 pre-tax deductions such as health premiums, reaching the Social Security wage base, or wages above $200,000 triggering Additional Medicare Tax.
14. FICA for household and seasonal workers
FICA applies from the first dollar for most employees, including part-time and seasonal workers. Household workers such as nannies are a special case: a family must withhold Social Security and Medicare only once it pays that worker more than the annual household employee threshold set by the IRS. Students working for their own college or university while enrolled are usually exempt, and so are some workers in state and local government who are covered by a public pension instead of Social Security, although most still pay Medicare.
Frequently Asked Questions
What is the FICA tax rate in 2026?
Employees pay 6.2% Social Security plus 1.45% Medicare, or 7.65%, and employers pay a matching amount.
What is the Social Security wage base for 2026?
$184,500. Wages above that amount are not subject to the 6.2% tax.
Does a 401(k) reduce FICA tax?
No. Traditional 401(k) contributions reduce income tax wages but not Social Security and Medicare wages.
What is the Additional Medicare Tax?
An extra 0.9% on wages above $200,000 for single filers and $250,000 for joint filers.
I have two jobs. Will I overpay Social Security tax?
If your combined wages exceed the wage base, you can claim the excess as a credit on your return.
Do self-employed people pay FICA?
They pay self-employment tax of 15.3%, which covers both halves.
Are tips subject to Social Security tax?
Yes, tips are wages for FICA purposes even if a federal income tax deduction applies.
Is severance subject to FICA?
Yes, severance pay is generally subject to Social Security and Medicare tax.
How much Social Security is taken from a $2,500 paycheck?
$155.00, which is 6.2% of $2,500, plus $36.25 for Medicare, if none of the pay is reduced by Section 125 deductions.
Does Medicare tax stop like Social Security?
No. Medicare tax applies to all wages with no cap, and an extra 0.9% applies above $200,000.
Why is Social Security tax higher than Medicare on my stub?
Social Security is 6.2% of wages and Medicare 1.45%, so Social Security is a little over four times larger.
This article is for general education only and is not tax, legal or investment advice. Figures and rules change; confirm details with the IRS or a qualified professional before making decisions.