FICA — the Federal Insurance Contributions Act — is the line on your pay stub that funds Social Security and Medicare. Unlike income tax, it applies from your very first dollar of wages, has (almost) no deductions, and is matched dollar-for-dollar by your employer.
The 2026 rates
| Tax | You pay | Employer pays | Applies to |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | First $184,500.00 of wages (2026) |
| Medicare | 1.45% | 1.45% | All wages, no cap |
| Additional Medicare | 0.9% | — | Wages above $200,000 ($250,000 married) |
Things most people don't realize
- 401(k) contributions don't reduce FICA. Pre-tax retirement deferrals lower income tax, but Social Security and Medicare are taken on the full gross. (HSA contributions through payroll do escape FICA.)
- High earners get a mid-year "raise." Once year-to-date wages cross $184,500.00, the 6.2% Social Security tax stops and paychecks jump for the rest of the year.
- Self-employed pay both halves — 15.3% as self-employment tax, with half of it deductible. Estimate yours with the self-employment tax calculator.
- FICA isn't a savings account. Today's taxes pay today's retirees; your future benefit is computed from your 35 highest-earning years.
See exactly what FICA takes from your own paycheck — alongside federal and state income tax — with the paycheck calculator.