What Is FICA on My Paycheck? 2026 Rates and Limits

The two pieces of FICA

FICA — the Federal Insurance Contributions Act — is a payroll tax withheld directly from wages. It funds Social Security and Medicare and has two employee components in 2026: 6.2% for Social Security and 1.45% for Medicare, for a combined 7.65% on most wages.

On a $75,000 salary that is $4,650 of Social Security and $1,087.50 of Medicare — $5,737.50 a year, or $220.67 from every biweekly check, before a dollar of income tax.

The 2026 Social Security wage base

The 6.2% applies only up to $184,500 of 2026 wages, per the SSA cost-of-living announcement. Earnings above that stop contributing to Social Security for the year — a raise that pushes you past the base produces a visible, temporary bump in net pay late in the year. Medicare has no cap: the 1.45% applies to every dollar.

• Social Security employee share: 6.2% up to $184,500 (max $11,439 in 2026) — $4,650 on $75,000
• Medicare employee share: 1.45%, no wage cap — $1,087.50 on $75,000
• Additional Medicare: 0.9% above $200,000 single / $250,000 joint — employee only; $0 on $75,000
• Employer matches 6.2% + 1.45% but not the 0.9% surtax — another $5,737.50 on $75,000

What FICA does not cover

FICA is not income tax. It funds specific programs and is withheld on top of federal and state income tax. Pre-tax §125 deductions like health premiums and HSA contributions reduce FICA-taxable wages, which is why they lower both taxes; 401(k) deferrals do not reduce FICA and stay fully taxed at 7.65%.

Self-employed pay double

Independent contractors pay the self-employment tax: the full 15.3% (employee + employer halves) on 92.35% of net earnings, with the same $184,500 Social Security base. Half of the SE tax is deductible above the line. This is the structural reason a 1099 hourly rate must beat a comparable W-2 salary to break even.