What Is FICA?
FICA (Federal Insurance Contributions Act) is the payroll tax that funds Social Security and Medicare. It's withheld automatically from every W-2 paycheck and matched dollar-for-dollar by your employer — you never file a separate FICA return, unlike income tax. Self-employed workers pay the equivalent under SECA (Self-Employment Contributions Act), covering both the employee and employer shares themselves.
2027 FICA Tax Rates — Unchanged by Statute
| 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 (Projected)
| Detail | 2027 Projected | 2026 Confirmed |
|---|---|---|
| Wage Base Limit | ~$190,000 | $184,500 |
| Max Employee SS Tax | ~$11,780 | $11,439.00 |
| Max Employer SS Tax | ~$11,780 | $11,439.00 |
| Max Combined SS Tax | ~$22,506 | $21,836.40 |
Additional Medicare Tax Thresholds — Unchanged
The Additional Medicare Tax thresholds are set by statute and are not indexed for inflation. They remain the same for 2027:
| Filing Status | Threshold | Additional Rate |
|---|---|---|
| Single / HoH / QW | $200,000 | 0.9% |
| Married Filing Jointly | $250,000 | 0.9% |
| Married Filing Separately | $125,000 | 0.9% |
Calculate your exact self-employment tax with our free calculator
Open Self-Employment Tax Calculator →See Confirmed 2026 Limits: For official IRS/SSA-published figures, see our 2026 FICA Tax Rates page.
How FICA Withholding Will Work in 2027
Employer-employee split on every paycheck: FICA splits the 12.4% Social Security tax and 2.9% Medicare tax in half between worker and employer. Each W-2 paycheck shows the 6.2% + 1.45% employee side, while the employer remits a matching 7.65% directly to the IRS. There is no FICA wage cap on the Medicare 1.45% — every dollar of W-2 wages is subject to it, even past the SS wage base projected near $190,000.
Additional Medicare Tax of 0.9% above $200k single / $250k MFJ: The Additional Medicare Tax (IRC §3101(b)(2)) applies on the employee side only — employers do not match it. Withholding begins automatically once an employee's year-to-date wages with a single employer cross $200,000, regardless of filing status. Joint filers near the $250,000 MFJ threshold or single filers with multiple jobs may need to true up the difference on Form 8959 when they file their return.
SECA for the self-employed: Self-employed workers pay both halves under the Self-Employment Contributions Act — 12.4% Social Security up to the wage base plus 2.9% Medicare on all net SE earnings, for a 15.3% combined rate on the first ~$190,000 of profit. The deductible half (the "employer" portion) is an above-the-line deduction taken on Schedule 1, lowering AGI; Additional Medicare Tax on SE earnings still applies above the same $200k/$250k thresholds.
Self-Employment Tax — Worked Example
Self-employment tax is calculated on 92.35% of net earnings, not the full amount — this offsets the fact that an employee's FICA base excludes the employer's matching share. For a freelancer with $100,000 in projected 2027 net self-employment profit: $100,000 × 92.35% = $92,350 SE tax base. Apply the 15.3% combined rate (well under the ~$190,000 wage base, so the full 12.4% Social Security portion applies): $92,350 × 15.3% ≈ $14,130 total SE tax. Half of that (~$7,065) is deductible above the line on Schedule 1, reducing the freelancer's AGI before income tax is calculated.
Source: SSA 2026 COLA fact sheet (2026 OASDI contribution and benefit base). FICA rates themselves are set by statute at IRC §§ 3101 and 3111. These 2027 figures are projections computed from those confirmed 2026 amounts; the IRS, SSA and CMS publish official 2027 numbers in October–November 2026.
Frequently Asked Questions
What are the 2027 FICA tax rates?
FICA rates are set by statute and do not change year to year: 6.2% Social Security plus 1.45% Medicare, for a combined 7.65% on both the employee and employer sides. Self-employed workers pay both halves under SECA, for a combined 15.3%. These rates carry into 2027 unchanged.
What is the projected 2027 Social Security wage base?
The Social Security wage base — the income ceiling above which the 6.2% Social Security tax stops applying — is projected at approximately $190,000 for 2027, up from the confirmed $184,500 in 2026. The Social Security Administration typically announces the official figure each October.
Do I pay Additional Medicare Tax on self-employment income?
Yes. The 0.9% Additional Medicare Tax applies to self-employment earnings the same way it applies to wages, using the same statutory thresholds: $200,000 for single, head of household, or qualifying widow(er) filers, $250,000 for married filing jointly, and $125,000 for married filing separately. These thresholds are not inflation-adjusted.
How is self-employment tax calculated for 2027?
Multiply net self-employment earnings by 92.35% to get the SE tax base, then apply 12.4% Social Security tax (up to the projected ~$190,000 wage base) plus 2.9% Medicare tax (no cap) for a combined 15.3% rate. Half of the calculated SE tax is deductible above the line on Schedule 1, which lowers adjusted gross income.
How this page is reviewed
See methodology, assumptions & sources
| Risk tier | High YMYL |
|---|---|
| Author | Calculover Editorial Team Finance and legal education |
| Editorial owner | Calculover Tax & Payroll Desk Tax and wage methodology owner |
| Reviewer | Calculover Editorial Review High-risk source and limitation review |
| Last reviewed | 2026-07-31 |
| Last verified | 2026-07-31 |
| Data effective date | 2026-01-01 |
Methodology
2027 FICA Tax Rates & Social Security Wage Base (Projected) applies the tax-rate, threshold, and taxable-base logic documented in the calculator formula section, then separates user-entered assumptions from statutory or source-linked rate inputs.
Assumptions
- 2027 FICA Tax Rates & Social Security Wage Base (Projected) relies on the values the user enters and does not independently verify income, balances, legal status, policy terms, or market quotes.
- Taxable income, deductions, credits, filing status, jurisdiction, and timing are simplified to the fields available in the calculator.
- Federal, state, local, and international tax rules can change after the listed last-verified date.
Limitations
- 2027 FICA Tax Rates & Social Security Wage Base (Projected) does not prepare a tax return, determine final liability, apply every credit or deduction, or account for all state, local, foreign, penalty, or surtax rules.
- Confirm current forms, thresholds, and filing obligations with the IRS, the relevant tax authority, or a qualified tax professional before filing or paying tax.
Sources
- Federal Income Tax Rates and Brackets, Internal Revenue Service
- Estimated Taxes, Internal Revenue Service
Professional guidance: 2027 FICA Tax Rates & Social Security Wage Base (Projected) is for tax education and planning only and is not tax, legal, accounting, or filing advice. Verify current rules with the relevant tax authority or a qualified tax professional.