In short: In 2026 an employee pays 6.2% Social Security tax on wages up to $184,500 and 1.45% Medicare tax on all wages, and the employer pays the same again. That is 7.65% each. Above $200,000 of wages an extra 0.9% Medicare tax applies, with no employer match. The self-employed pay both halves, 15.3%, on 92.35% of net earnings. The most an employee pays in Social Security tax in 2026 is $11,439.00.
What FICA is
FICA is the Federal Insurance Contributions Act, and the tax named after it funds Social Security and Medicare. It is separate from income tax. It applies to wages from the first dollar, with no standard deduction, and it does not depend on filing status except for the Additional Medicare Tax.
For the self-employed, the equivalent is the self-employment tax under the Self-Employment Contributions Act, usually called SECA. It covers the same two programs at the same combined rates.
The 2026 rates and limits
| Tax | Employee | Employer | Self-employed | Earnings it applies to |
|---|---|---|---|---|
| Social Security | 6.2% | 6.2% | 12.4% | Up to $184,500 |
| Medicare | 1.45% | 1.45% | 2.9% | All earnings |
| Additional Medicare Tax | 0.9% | None | 0.9% | Above the threshold for the filing status |
The Social Security wage base rose from $176,100 in 2025 to $184,500 in 2026. It is adjusted each year in line with national average wages. The Medicare rates have no cap.
The Additional Medicare Tax thresholds are $250,000 for a married couple filing jointly, $125,000 for married filing separately, and $200,000 for every other filing status.
What an employee pays at different salaries
All figures are the employee's share for a single filer in 2026, computed by the same payroll function the calculators use. The employer pays the same Social Security and regular Medicare amounts, but no Additional Medicare Tax.
| Annual wages | Social Security | Medicare | Additional Medicare | Employee total | Share of wages | Employer total |
|---|---|---|---|---|---|---|
| $50,000 | $3,100.00 | $725.00 | $0.00 | $3,825.00 | 7.65% | $3,825.00 |
| $100,000 | $6,200.00 | $1,450.00 | $0.00 | $7,650.00 | 7.65% | $7,650.00 |
| $184,500 | $11,439.00 | $2,675.25 | $0.00 | $14,114.25 | 7.65% | $14,114.25 |
| $250,000 | $11,439.00 | $3,625.00 | $450.00 | $15,514.00 | 6.21% | $15,064.00 |
| $300,000 | $11,439.00 | $4,350.00 | $900.00 | $16,689.00 | 5.56% | $15,789.00 |
| $500,000 | $11,439.00 | $7,250.00 | $2,700.00 | $21,389.00 | 4.28% | $18,689.00 |
Up to the wage base, every employee pays the same 7.65%. Above it, Social Security stops at $11,439.00 while Medicare continues, so the share of wages falls. The Additional Medicare Tax slows that fall but does not reverse it: at $500,000 the employee pays 4.28% of wages.
The wage base, and why the next dollar can cost less
Once wages pass $184,500 in a year, Social Security tax stops for the rest of that year. For someone earning above the base, the payroll tax on the next dollar falls from 7.65% to 1.45%.
That is why high earners often see their take-home pay rise late in the year: the Social Security deduction disappears from their paychecks once year-to-date wages pass the base. It starts again in January.
At $200,000 of wages, the 0.9% Additional Medicare Tax begins, and the employee's rate on the next dollar becomes 2.35%.
The Additional Medicare Tax: withholding versus what you owe
The Additional Medicare Tax is figured on the household's return using the filing-status threshold. Employers, though, must withhold it from any employee whose wages from that employer exceed $200,000 in the calendar year, regardless of filing status. The two rules do not always agree.
| Situation | Withheld by employers | Owed on the return | Settled at filing |
|---|---|---|---|
| Single, one job paying $260,000 | $540.00 | $540.00 | Nothing |
| Married couple, each earning $150,000 | $0.00 | $450.00 | $450.00 more owed |
| Married couple, one earner on $300,000 | $900.00 | $450.00 | $450.00 credited back |
In the second case neither employer crosses $200,000, so nothing is withheld, but the couple's $300,000 of combined wages is $50,000 over the joint threshold of $250,000. In the third case the employer withholds on the $100,000 above $200,000, while the couple owes 0.9% only on the $50,000 above $250,000. Both are reconciled on Form 8959 with the income tax return.
Two jobs and the Social Security cap
The wage base applies to the worker, but each employer withholds as if it were the only one. Someone earning $120,000 from one employer and $100,000 from another has $7,440.00 and $6,200.00 of Social Security tax withheld, $13,640.00 in total. The 2026 maximum is $11,439.00, so $2,201.00 was withheld too much.
When the excess comes from more than one employer, it is claimed as a credit against income tax on the return. When a single employer withheld too much, the return cannot fix it; the employer has to correct it. The employers' share is not refunded either way, because each employer owes its own match on the wages it paid.
Self-employment tax
A self-employed person is both employee and employer, so the rate is 15.3%: 12.4% Social Security and 2.9% Medicare. It is due when net earnings from self-employment are $400 or more.
The tax applies to 92.35% of net profit, not all of it. The 7.65% reduction mirrors the employee's position: an employee never pays FICA on the employer's half of the tax, so the self-employed base is reduced by the same proportion. Half of the resulting tax, excluding any Additional Medicare Tax, is then deductible in arriving at adjusted gross income.
| Net profit | Taxable base (92.35%) | Social Security | Medicare | Additional Medicare | Total SE tax | Deductible half |
|---|---|---|---|---|---|---|
| $50,000 | $46,175.00 | $5,725.70 | $1,339.08 | $0.00 | $7,064.78 | $3,532.39 |
| $100,000 | $92,350.00 | $11,451.40 | $2,678.15 | $0.00 | $14,129.55 | $7,064.78 |
| $200,000 | $184,700.00 | $22,878.00 | $5,356.30 | $0.00 | $28,234.30 | $14,117.15 |
| $250,000 | $230,875.00 | $22,878.00 | $6,695.38 | $277.88 | $29,851.26 | $14,786.69 |
Below the wage base, self-employment tax is 14.13% of net profit, which is 15.3% of 92.35%. At $200,000 of profit, the taxable base of $184,700 has just passed the wage base, so Social Security is capped at $22,878.00, which is 12.4% of $184,500. At $250,000, the base is $30,875 over the single filer's $200,000 threshold, and the Additional Medicare Tax on that is $277.88.
A job and a side business
Wages and self-employment earnings share one Social Security wage base and one Additional Medicare threshold. Wages count first.
A single filer with $75,000 of wages and $30,000 of side-business profit is nowhere near either limit. The side business owes the full 14.13%: $4,238.87 of self-employment tax on a taxable base of $27,705.
A single filer with $160,000 of wages and $60,000 of profit is different. Only $24,500 of wage base remains after the salary, so Social Security tax on the business is $3,038.00, not 12.4% of the whole $55,410 base. Medicare is $1,606.89 on the full base. Wages plus the base come to $215,410, which is $15,410 above $200,000, so Additional Medicare Tax is $138.69. The total is $4,783.58, an effective 7.97% of profit.
What FICA does not cover
FICA is not reduced by most pre-tax savings. Elective deferrals to a traditional 401(k) reduce income tax but are still wages for Social Security and Medicare. FICA also has no standard deduction and no credits.
This guide covers only the federal Social Security and Medicare taxes. Federal unemployment tax is paid by employers alone, and several states levy their own payroll taxes for disability or family leave insurance, which are separate from FICA.
Common mistakes
Expecting a 401(k) contribution to cut payroll tax. It reduces federal income tax, not FICA.
Applying 15.3% to all of a self-employed profit. The base is 92.35% of net profit, so the effective rate below the wage base is 14.13%.
Assuming the Additional Medicare Tax withheld is what you owe. Withholding starts at $200,000 per employer; the liability depends on the household's filing status and combined earnings.
Thinking the employer match is refundable. Excess Social Security withheld across two jobs comes back to the employee as a credit. The employers' share does not.
Try it with your own numbers
The self-employment tax calculator applies the Schedule SE rules to a net profit, including W-2 wages that use up part of the wage base. The paycheck calculator shows payroll tax alongside income tax withholding, and marginal vs effective tax rate shows how payroll tax adds to the income tax rate on the next dollar of pay.
Frequently asked questions
What is the Social Security wage base for 2026?
What is the total FICA rate in 2026?
Who pays the 0.9% Additional Medicare Tax?
How is self-employment tax calculated?
I had two jobs and paid too much Social Security tax. Can I get it back?
Does a 401(k) contribution reduce Social Security and Medicare tax?
Sources
- Social Security Administration, Office of the Chief Actuary, Contribution and benefit base, with the 2026 base of $184,500. ssa.gov/OACT/COLA/cbb.html
- Internal Revenue Service, Topic no. 751, Social Security and Medicare withholding rates. irs.gov/taxtopics/tc751
- Internal Revenue Service, Questions and answers for the Additional Medicare Tax. irs.gov/businesses/small-businesses-self-employed/questions-and-answers-for-the-additional-medicare-tax
- Internal Revenue Service, Topic no. 554, Self-employment tax. irs.gov/taxtopics/tc554
- Internal Revenue Service, Topic no. 608, Excess Social Security and RRTA tax withheld. irs.gov/taxtopics/tc608
- Internal Revenue Service, Topic no. 424, 401(k) plans. irs.gov/taxtopics/tc424