FICA is the payroll tax that funds Social Security and Medicare, and nearly every worker in the country pays it. Unlike income tax, it is charged at flat rates, but Social Security stops once your wages pass an annual cap while Medicare keeps going with no ceiling. The table below shows the 2026 Social Security and Medicare rates, the wage base limit, and the threshold for the additional Medicare surtax.
Because FICA applies the same way in every state, these figures matter for any paycheck in the US, and they are the exact values our payroll calculator uses.
| Employee Rate | Wage Limit | |
|---|---|---|
| Social Security | 6.2% | First $184,500 of wages |
| Medicare | 1.45% | All wages (no cap) |
| Additional Medicare | 0.9% | Wages above $200,000 (single / head of household), $250,000 (married filing jointly), $125,000 (married filing separately) |
FICA comes out of every paycheck in every state and is separate from income tax. Employers pay a matching share on top of these employee rates; self-employed workers pay both halves through self-employment tax.
The Social Security portion
Social Security tax is charged on your wages up to the annual wage base limit. Once your earnings pass that limit within the calendar year, Social Security tax stops for the rest of the year, which is why some higher earners notice their take-home pay rise in the final months. Every dollar you earn below the cap is taxed at the same flat rate.
The Medicare portion and the surtax
Medicare tax has no wage cap, so it applies to all of your earnings. Above a set income threshold, higher earners pay an additional Medicare surtax on top of the standard rate. That threshold depends on your filing status, and the table above lists the current figures.
Who pays, and the self-employed
For employees, the cost is split evenly: you pay half through payroll withholding and your employer pays the other half. If you are self-employed, you pay both halves yourself as self-employment tax, which is an important number to plan for when you compare contractor pay to an employee salary. To see how FICA affects your specific paycheck, run your figures through the payroll calculator.
Frequently asked questions
Why did my Social Security tax stop partway through the year?
Social Security tax only applies up to the annual wage base limit. Once your year to date wages pass that cap, the tax stops until the next calendar year, which raises your take-home pay for the remaining paychecks.
Do the self-employed pay more FICA than employees?
They pay both halves. Employees split the cost with their employer, while self-employed workers cover the full Social Security and Medicare amount themselves through self-employment tax.
Leave a Reply