What FICA is
FICA (the Federal Insurance Contributions Act) is the payroll tax that funds Social Security and Medicare. It's separate from income tax: there are no brackets, no standard deduction and no filing-status tables for most people. Your employer withholds it from every paycheck, matches it, and sends both halves to the IRS.
2026 FICA rates and limits
| Tax | Employee | Employer | Applies to |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | 1.45% | All wages, no cap |
| Additional Medicare | 0.9% | None | Wages over $200,000 (single/HoH) or $250,000 (joint) |
The 2026 wage base of $184,500 means the most Social Security tax an employee can pay this year is $11,439. The base rises most years with national average wages; the additional Medicare thresholds are fixed in law and are not adjusted for inflation.
Worked examples (single filer)
| Wages | Social Security | Medicare | Extra 0.9% | Total | Rate |
|---|---|---|---|---|---|
| $50,000 | $3,100 | $725 | $0 | $3,825 | 7.65% |
| $100,000 | $6,200 | $1,450 | $0 | $7,650 | 7.65% |
| $184,500 | $11,439 | $2,675 | $0 | $14,114 | 7.65% |
| $250,000 | $11,439 | $3,625 | $450 | $15,514 | 6.21% |
| $400,000 | $11,439 | $5,800 | $1,800 | $19,039 | 4.76% |
At $100,000 you pay the full 7.65%: $7,650. At $250,000 the effective rate falls to 6.21% because Social Security stopped at $184,500, even though the extra 0.9% Medicare tax now applies to the $50,000 above $200,000. FICA is one of the few taxes that takes a smaller share of very high wages.
What counts as FICA wages
- Included: salary, hourly pay, overtime, bonuses, commissions, tips you report, and traditional 401(k)/403(b) deferrals.
- Excluded: health, dental and vision premiums and HSA contributions paid through a Section 125 cafeteria plan, and most dependent-care FSA contributions.
- Not wages at all: interest, dividends, capital gains, rental income and pensions don't pay FICA. Self-employment income pays self-employment tax instead.
To see FICA alongside income tax and your state's deductions, use the paycheck calculator. If you freelance or get a 1099, the self-employment tax calculator covers the 15.3% you pay on your own.
What this includes & its limits
- Employee and employer FICA on W-2 wages for one year, using the 2026 wage base and rates.
- Treats all wages as coming from one employer. With several jobs, each employer withholds separately and you settle the difference on your return.
- Doesn't cover railroad retirement (RRTA), exempt religious groups, students working for their school, or non-resident visa holders who are exempt from FICA.
Sources: SSA 2026 contribution and benefit base ($184,500); IRS Additional Medicare Tax thresholds.
Frequently asked questions
An estimate for general guidance, not tax or payroll advice.