What Is FICA Tax? Social Security and Medicare Explained
FICA — the Federal Insurance Contributions Act — requires virtually every American worker to contribute to Social Security and Medicare. Unlike income tax, FICA is not progressive: you pay the same percentage regardless of how you file, and it starts with your very first dollar of earned income.
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FICA Tax Rates in 2026
Social Security Tax: 6.2% Up to $176,100
Social Security tax is 6.2% on wages up to the wage base limit of $176,100 in 2026. Once your earnings exceed that threshold, Social Security tax stops for the rest of the calendar year. Your employer pays an equal 6.2% match — so the total contribution per worker is 12.4%.
Medicare Tax: 1.45% With No Cap
Medicare tax is 1.45% on all wages — there is no wage ceiling. High earners (above $200,000 for single filers) have an additional 0.9% Medicare surtax applied, bringing their total Medicare rate to 2.35%.
Self-Employed: You Pay Both Sides
Self-employed individuals don't have an employer to split the FICA bill. They pay the full 15.3% themselves as Self-Employment Tax. However, they can deduct the employer-equivalent half (7.65%) as a business expense, partially offsetting the burden.
Tip
FICA taxes are withheld regardless of your filing status, deductions, or credits. They appear on every paycheck as "Social Security" and "Medicare" line items.
Frequently Asked Questions
No. FICA is a flat payroll tax funding Social Security and Medicare. Federal income tax is progressive and funds general government spending.
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