Last updated: April 2026 · Data: IRS, BLS, state sources
FICA stands for the Federal Insurance Contributions Act. FICA taxes fund two federal programs: Social Security (officially Old-Age, Survivors, and Disability Insurance, or OASDI) and Medicare (Hospital Insurance). These payroll taxes are mandatory for virtually all workers and are separate from federal and state income taxes.
For W-2 employees, FICA is split equally between you and your employer. You pay 7.65% (6.2% Social Security + 1.45% Medicare), and your employer pays a matching 7.65%, for a combined total of 15.3%. Self-employed individuals pay both halves, totaling 15.3% on net self-employment income.
| Tax | Employee Rate | Wage Base / Cap |
|---|---|---|
| Social Security | 6.2% | $176,100 (wages above this are exempt) |
| Medicare | 1.45% | No cap (all wages) |
| Additional Medicare | 0.9% | Wages above $200,000 (single) |
The Social Security wage base is adjusted annually for inflation. Once your year-to-date earnings exceed $176,100, Social Security withholding stops for the rest of the year. Medicare has no wage cap and applies to all earnings. High earners pay an extra 0.9% Medicare surtax on wages exceeding $200,000 (single) or $250,000 (married filing jointly).
FICA is calculated on gross wages before income tax deductions but after certain pre-tax deductions like HSA contributions. See our paycheck reading guide for details.