FICA stands for the Federal Insurance Contributions Act. It is the payroll tax that funds Social Security and Medicare, and it shows up on every pay stub as two separate lines.
The two parts
- Social Security (OASDI): 6.2% of wages, up to the annual wage base. For 2026 the wage base is $184,500. Wages above that amount are not subject to Social Security tax.
- Medicare: 1.45% of all wages, with no cap.
Together that is 7.65% on most of a paycheck. Your employer pays a matching 7.65% that does not come out of your pay.
The Additional Medicare Tax
Wages above $200,000 are subject to an extra 0.9% Medicare tax. Employers start withholding it once your wages pass $200,000 in a year. Your actual liability depends on filing status, with a threshold of $250,000 for married couples filing jointly, and is settled on your tax return.
What FICA costs at different salaries (2026)
| Salary | Social Security | Medicare | Additional Medicare | Total FICA | Share of pay |
|---|---|---|---|---|---|
| $30,000 | $1,860 | $435 | $0 | $2,295 | 7.65% |
| $60,000 | $3,720 | $870 | $0 | $4,590 | 7.65% |
| $100,000 | $6,200 | $1,450 | $0 | $7,650 | 7.65% |
| $184,500 | $11,439 | $2,675 | $0 | $14,114 | 7.65% |
| $250,000 | $11,439 | $3,625 | $450 | $15,514 | 6.21% |
At $250,000 the overall FICA share is 6.21%, lower than 7.65%, because Social Security stops at the $184,500 wage base.
Does a 401(k) reduce FICA?
No. Traditional 401(k) deferrals reduce income tax wages but not Social Security and Medicare wages. Some pre-tax benefits do reduce FICA wages, such as health insurance premiums through a cafeteria plan and payroll HSA contributions.
If you are self-employed
Self-employed people pay both halves, a combined 15.3% (12.4% Social Security plus 2.9% Medicare) on net earnings, and can deduct part of it. This calculator is built for employees and does not model self-employment tax.
Why does it matter?
FICA is the same in every state and cannot be avoided by moving. It is a large part of the gap between gross and net pay, particularly for lower and middle incomes, where it can be a bigger bill than federal income tax. See gross pay vs net pay for the whole picture.
Try the take-home pay calculator to see your own numbers, or pick your state from the state list.