What Is FICA?
FICA stands for the Federal Insurance Contributions Act. It is the payroll tax that funds Social Security and Medicare. Both employees and employers pay FICA taxes, with each side contributing an equal share. Self-employed individuals pay both the employee and employer portions through the self-employment tax.
FICA taxes are mandatory for nearly all workers in the United States. Social Security provides retirement, disability, and survivor benefits, while Medicare funds healthcare for individuals age 65 and older.
2026 FICA Tax Rates
| Tax Component | Employee Rate | Employer Rate | Self-Employed Rate |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | 12.4% |
| Medicare | 1.45% | 1.45% | 2.9% |
| Total FICA | 7.65% | 7.65% | 15.3% |
Social Security Wage Base
The 2026 Social Security wage base is $176,100. Only earnings up to this threshold are subject to the 6.2% Social Security tax. Any wages above $176,100 are exempt from Social Security tax but remain subject to Medicare tax (which has no wage cap).
| Detail | 2026 Amount |
|---|---|
| Wage Base Limit | $176,100 |
| Max Employee SS Tax | $10,918.20 |
| Max Employer SS Tax | $10,918.20 |
| Max Combined SS Tax | $21,836.40 |
The wage base is adjusted annually by the Social Security Administration based on changes in the national average wage index. For reference, the 2025 wage base was $168,600.
Additional Medicare Tax Thresholds
High earners owe an extra 0.9% Additional Medicare Tax on wages exceeding certain thresholds. This surtax is paid by employees only — employers do not match it.
| Filing Status | Threshold | Additional Rate |
|---|---|---|
| Single | $200,000 | 0.9% |
| Married Filing Jointly | $250,000 | 0.9% |
| Married Filing Separately | $125,000 | 0.9% |
| Head of Household | $200,000 | 0.9% |
The Additional Medicare Tax applies to wages, compensation, and self-employment income above the threshold. Unlike the standard Medicare tax, employers do not withhold it automatically until wages exceed $200,000 (regardless of filing status), so some filers may owe additional tax at filing time.
Self-Employment Tax
Self-employed individuals pay both the employee and employer portions of FICA, for a combined rate of 15.3%. However, the tax applies to only 92.35% of net self-employment earnings (the 7.65% reduction accounts for the employer-equivalent portion).
Calculation example: If your net self-employment income is $100,000, you first multiply by 92.35% to get $92,350. Then apply 15.3% for a self-employment tax of $14,129.55. The Social Security portion (12.4%) applies only up to the $176,100 wage base, while the Medicare portion (2.9%) applies to all earnings with no cap.
Self-employed individuals can deduct the employer-equivalent half of their self-employment tax (7.65%) as an above-the-line deduction on their income tax return.
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Open SE Tax Calculator →Frequently Asked Questions
What is the FICA tax rate for 2026?
The 2026 FICA tax rate is 7.65% for employees (6.2% Social Security + 1.45% Medicare). Employers pay a matching 7.65%, bringing the total combined rate to 15.3%. Self-employed individuals pay the full 15.3% on 92.35% of their net earnings.
What is the Social Security wage base for 2026?
The 2026 Social Security wage base is $176,100. Only earnings up to this amount are subject to the 6.2% Social Security tax. The maximum Social Security tax an employee will pay in 2026 is $10,918.20 ($176,100 x 6.2%).
Who pays the Additional Medicare Tax in 2026?
The 0.9% Additional Medicare Tax applies to individuals with wages exceeding $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately). Only employees pay this surtax; employers do not match it. It applies on top of the standard 1.45% Medicare tax.
How is self-employment tax calculated in 2026?
Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) applied to 92.35% of net self-employment earnings. The 92.35% factor accounts for the employer-equivalent portion. The Social Security component applies only up to the $176,100 wage base, while Medicare has no earnings cap.