What is FICA tax? Meaning and the 2026 rate

By the HRPricing editorial teamReviewed October 18, 2026How we research and score

FICA stands for the Federal Insurance Contributions Act, the law behind the Social Security and Medicare taxes withheld from every paycheck: 7.65% from the employee, matched by another 7.65% from the employer in 2026 (IRS Topic 751, checked October 2026). The Social Security part stops at $184,500 of wages in 2026; Medicare has no cap.

FICA is the federal payroll tax that funds Social Security (6.2%) and Medicare (1.45%), paid by both the employee and the employer on wages.

On this page
  1. The 2026 FICA rates
  2. FICA on two salaries
  3. How FICA shows up on a pay stub and W-2
  4. FICA vs self-employment tax, FUTA and SUTA

The 2026 FICA rates

FICA tax rates for 2026
PartEmployeeEmployerWage limit
Social Security (OASDI)6.2%6.2%First $184,500 (2027: $192,300)
Medicare1.45%1.45%No limit
Additional Medicare Tax0.9%0%Withheld on wages over $200,000
Total on most wages7.65%7.65%

Source: IRS Topic 751 and Publication 15 (2026); SSA 2026 and 2027 fact sheets. Checked October 2026.

The Additional Medicare Tax is employee only. The employer must start withholding it once wages pass $200,000 in the year, whatever the worker's filing status, and does not match it.

FICA on two salaries

$50,000 salary. Social Security is $50,000 x 6.2% = $3,100. Medicare is $50,000 x 1.45% = $725. The employee pays $3,825 through withholding and the employer pays the same $3,825, so FICA costs $7,650 in total.

$250,000 salary. Social Security applies only to the first $184,500: $184,500 x 6.2% = $11,439 on each side. Medicare is $250,000 x 1.45% = $3,625 on each side. The employee also has $50,000 x 0.9% = $450 of Additional Medicare Tax withheld. Employee total: $15,514. Employer total: $15,064.

To see FICA next to FUTA, state unemployment tax and benefits for one hire, use the employee cost calculator.

How FICA shows up on a pay stub and W-2

A pay stub usually shows two lines, Social Security (sometimes OASDI) and Medicare, for the current period and year to date. The employer share does not appear on the stub. At year end the Form W-2 reports Social Security wages and tax and Medicare wages and tax separately from the wages used for federal income tax.

Those wage figures often differ. IRS Publication 15 treats traditional 401(k) deferrals as exempt from federal income tax withholding but not from Social Security and Medicare, so a worker's Social Security wages can be higher than their income tax wages. Employers deposit FICA with withheld income tax and report it each quarter on Form 941; the Q3 2026 return is due November 2, 2026 (IRS employment tax due dates).

FICA vs self-employment tax, FUTA and SUTA

  • Self-employment tax: a 1099 contractor pays self-employment tax, which covers both the employee and the employer halves of Social Security and Medicare. The business that pays them withholds nothing.
  • FUTA: federal unemployment tax, employer only, 0.6% net on the first $7,000.
  • SUTA: state unemployment tax, mostly employer paid, with a state wage base and an assigned rate.

For every federal, state and local rate in one place, see 2026 payroll tax rates and our payroll taxes guide.

Frequently asked questions

What is FICA tax?
FICA is the Federal Insurance Contributions Act tax that funds Social Security and Medicare. In 2026 the employee pays 6.2% Social Security on the first $184,500 of wages plus 1.45% Medicare on all wages, and the employer pays the same amounts (IRS Topic 751).
What is the FICA tax rate for 2026?
The FICA rate for 2026 is 7.65% for the employee and 7.65% for the employer: 6.2% Social Security up to the $184,500 wage base and 1.45% Medicare with no limit. Employees also have 0.9% Additional Medicare Tax withheld on wages over $200,000 (IRS Topic 751).
What does FICA mean on my paycheck?
The FICA lines on a paycheck are the Social Security and Medicare taxes withheld from your gross pay. On a $2,000 paycheck that is $124 Social Security and $29 Medicare, $153 in all. Your employer pays a matching $153 that does not show on your stub.
Can I get FICA tax back?
Usually not, but if you worked for two or more employers in 2026 and your combined wages passed $184,500, more Social Security may have been withheld than the one-year maximum of $11,439 ($184,500 x 6.2%). That excess is dealt with on your federal income tax return, not through payroll, so check the IRS instructions for your return. The employer share is not refunded to you.
Do 1099 contractors pay FICA?
Contractors do not have FICA withheld. They pay self-employment tax instead, which covers both the employee and the employer halves of Social Security and Medicare on their net earnings from self-employment.
Sources (5)
  1. IRS: Topic 751, Social Security and Medicare withholding rates (updated Sep 24, 2026) (checked Oct 16, 2026)
  2. IRS: Publication 15 (Circular E), Employer's Tax Guide, for use in 2026 (checked Oct 16, 2026)
  3. Social Security Administration: 2026 COLA fact sheet (checked Oct 16, 2026)
  4. Social Security Administration: 2027 COLA fact sheet (certified Oct 14, 2026) (checked Oct 16, 2026)
  5. IRS: Employment tax due dates (checked Oct 16, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.