What is FICA tax in 2026?

FICA stands for Federal Insurance Contributions Act — the federal payroll tax that funds Social Security and Medicare. For W-2 employees, FICA is 7.65% of wages: 6.2% Social Security (capped at $184,500 of wages in 2026) plus 1.45% Medicare (no cap). Your employer matches with another 7.65%, so the total cost to fund your Social Security and Medicare benefits is 15.3% of wages. Self-employed people pay both halves themselves via SE tax (Schedule SE).

Is FICA the same as Social Security and Medicare tax?

Yes — FICA is the umbrella term that includes both Social Security tax (6.2%) and Medicare tax (1.45%). On your paystub you might see them broken out as separate line items ("OASDI" or "SS" for Social Security, "Med" or "Medicare" for Medicare) or combined under "FICA." They're the same federal taxes, just different naming conventions. The IRS and SSA both use "FICA" in formal documentation.

How much FICA will I pay on a $100,000 salary?

For a W-2 employee earning $100,000 in 2026: 6.2% Social Security on the full $100,000 = $6,200, plus 1.45% Medicare = $1,450. Total FICA paid by you: $7,650. Your employer separately pays another $7,650 (their match). Total FICA collected on your $100K: $15,300, all funding Social Security and Medicare benefits. No Additional Medicare Tax at this income level (the 0.9% surtax kicks in only above $200K single / $250K MFJ).

What is the FICA wage cap for 2026?

Only the Social Security half of FICA has a wage cap — $184,500 for 2026. The Medicare half (1.45%) has no cap and applies to every dollar of wages. Above $200,000 (single) / $250,000 (MFJ), an Additional Medicare Tax of 0.9% kicks in (the employee-only portion of FICA). So the FICA structure is "stacked": 7.65% on wages up to $184,500, then 1.45% on wages between $184,500 and $200K, then 2.35% on wages above $200K (or $250K MFJ).

Do bonuses, commissions, and stock comp owe FICA?

Yes — virtually all forms of W-2 wage compensation are subject to FICA. That includes salary, hourly pay, overtime, bonuses, commissions, RSU vests, NSO exercise spread, severance, and most employer-provided benefits. The main exception is ISO exercise WITHOUT immediate sale (the AMT-relevant case): the spread is not FICA wages until disqualifying disposition. Also exempt: pre-tax 401(k) contributions are NOT exempt from FICA (only from federal income tax), and HSA payroll contributions are FICA-exempt only if made through Section 125 / cafeteria plan (most are).

Are 401(k) contributions exempt from FICA?

Traditional 401(k) and Roth 401(k) contributions are NOT exempt from FICA — they're only exempt from federal income tax (Traditional only). The full FICA 7.65% still applies to your full gross wages BEFORE 401(k) reduction. So if you earn $100K and contribute $20K to a Traditional 401(k), your federal taxable wages are $80K but your FICA wages remain $100K and you owe $7,650 in FICA. This often surprises people: "I put $20K in my 401(k), why is my Social Security still based on the full $100K?" The answer is that Social Security benefits are also calculated on full wages, so contributions don't reduce future benefits.

Are HSA contributions exempt from FICA?

Only if made via payroll under a Section 125 cafeteria plan. Most employer-sponsored HSA payroll contributions ARE pre-tax for FICA purposes (saving you 7.65% on every contributed dollar plus reducing federal income tax). After-the-fact HSA contributions you make from your bank account (deducted on Schedule 1 of Form 1040) save you federal income tax but NOT FICA — you've already paid FICA on those wages before depositing. Maximize HSA payroll contributions when offered; the FICA savings is real and meaningful (~$300-$700/yr for a typical $4,400 HSA contribution).

What's the difference between FICA and FUTA?

Different programs, both payroll taxes. FICA funds Social Security and Medicare (employee + employer split). FUTA (Federal Unemployment Tax Act) funds the federal share of unemployment insurance — paid ONLY by employers, never deducted from employee paychecks. FUTA rate: 6% on the first $7,000 of each employee's wages, but employers in good standing get a 5.4% credit, so effective FUTA rate is 0.6% × $7,000 = $42/year per employee. FUTA never appears on employee paystubs or W-2s; FICA always does. Both are administered by the IRS.

Updated for 2026

FICA Tax

7.65% on every paycheck: 6.2% Social Security (capped at $184,500) plus 1.45% Medicare (no cap). Employer matches. Self-employed pay both halves.

2026 FICA Breakdown

Employee FICA

7.65%

Social Security

6.2%

Medicare

1.45%

SS Wage Cap

$184,500

Total cost (employee + employer) is 15.3% of wages, all funding Social Security and Medicare. Above $184,500, Social Security stops; Medicare keeps applying with no cap. Self-employed pay both halves themselves via Schedule SE (15.3% combined).

Source: IRS Federal Insurance Contributions Act · §3101 / §3111 of the Internal Revenue Code.

What is FICA tax?

stands for Federal Insurance Contributions Act — the 1935 law that established the payroll-tax mechanism for funding Social Security (added in 1935) and Medicare (added 1965, with the FICA umbrella expanded to include it). 'FICA tax' is the umbrella name for the combined Social Security and Medicare payroll taxes.

For employees, is 7.65% of every paycheck: 6.2% goes to Social Security (capped at $184,500 of wages in 2026), and 1.45% goes to Medicare (no wage cap). Your employer separately pays a matching 7.65% on top of your wages. So the total FICA cost on your wages is 15.3% — half visible on your paycheck as withholding, half invisible as employer match.

Self-employed people pay both halves themselves through Self-Employment Tax (SE tax) on Schedule SE — same 15.3% combined, computed on net SE earnings. The IRS partially compensates by letting SE workers deduct half of their SE tax above-the-line on Schedule 1.

The two halves of FICA

SOCIAL SECURITY (OASDI)

6.2%

• Funds retirement, disability, and survivor benefits.
• Capped at $184,500 wage base (2026); indexed annually.
• Employer matches 6.2% separately (12.4% total).
• Maximum employee SS tax for 2026: $11,439.
• Self-employed pay 12.4% on Schedule SE.

MEDICARE

1.45%

• Funds Medicare Part A (hospital insurance).
• NO wage cap — applies to every dollar.
• Employer matches 1.45% separately (2.9% total).
• Plus 0.9% Additional Medicare on wages over $200K single / $250K MFJ (employee only).
• Self-employed pay 2.9% on Schedule SE.

What's exempt from FICA — the short list

EXEMPT FROM FICA

• Pre-tax HSA contributions (via Section 125 cafeteria plan only)
• Pre-tax health insurance premiums (via Section 125)
• Pre-tax dependent care FSA contributions
• ISO exercise spread (until disqualifying disposition)
• Pension/IRA/401(k) distributions in retirement
• Capital gains, dividends, interest, rental income
• Most employer fringe benefits (parking, transit pass within IRS limits)

NOT EXEMPT (FICA APPLIES)

• Traditional 401(k) contributions (FICA on full gross wages)
• Roth 401(k) contributions (FICA on full gross wages)
• Bonuses, commissions, severance pay
• RSU vests, NSO exercise spread
• ISO disqualifying disposition spread
• Tips reported to employer
• After-the-fact HSA contributions (FICA already paid on wages)

Note: The 'No Tax on Overtime' federal income tax deduction (2025-2028) does NOT extend to — overtime wages still owe the full 7.65% FICA. Same for the 'No Tax on Tips' deduction. FICA applies to all earned wage income regardless of any federal income tax deductions.

Worked example — full FICA breakdown

Single W-2 employee earning $250,000 — shows how FICA stacks across the wage cap and Additional Medicare threshold.

EXAMPLE — Single W-2 employee, $250,000 salary

Wages: $250,000
Social Security half
6.2% × $184,500 (wage base cap): $11,439
(Wages above $184,500 — no SS tax): $0
Medicare half
1.45% × $250,000 (no cap): $3,625
0.9% Additional Medicare × ($250,000 − $200,000): +$450
Total FICA paid by employee: $15,514
Employer separately pays SS 6.2% × $184,500 + Medicare 1.45% × $250,000: $15,064
Total FICA collected on wages (employee + employer): $30,578

The employee feels 6.21% effective FICA. The full economic cost (counting the employer's match, which economists generally argue ultimately comes out of wages) is 12.23%. Above the $184,500 SS cap, the marginal FICA on each additional dollar is just 1.45% Medicare + 0.9% additional = 2.35% (employee side).

FICA is one piece — see the full picture

FICA stacks with federal income tax, state income tax, retirement contributions, and any state-level surcharges. Run the full calculation for your salary, state, and filing status.

Salary calculator (full breakdown) →Social Security wage base →Medicare tax rate →Self-employment tax rate →

FICA Tax FAQ

Sources & Methodology

FICA reflects 2026 federal law: 7.65% employee + 7.65% employer match split as 6.2% Social Security (capped at the wage base) plus 1.45% Medicare (uncapped). Additional Medicare Tax of 0.9% applies to wages above $200K single / $250K MFJ thresholds (set by the Affordable Care Act in 2010, not indexed for inflation). Self-employed individuals pay both halves themselves on Schedule SE.

IRS Topic No. 751 — Social Security and Medicare Withholding Rates
IRS Publication 15 (Circular E) — Employer's Tax Guide
IRS — Additional Medicare Tax Q&A
SSA — Contribution and Benefit Base
SSA — How Is Social Security Financed?
Internal Revenue Code §3101 (FICA employee tax), §3111 (FICA employer tax), §3102 (deduction by employer), §1401 (self-employment tax), §1411 (Net Investment Income Tax — separate 3.8% at $200K/$250K).