What is the FICA Tax?
FICA funds Social Security and Medicare. Employees pay 6.2% Social Security on wages up to the annual wage base ($184,500 for 2026) and 1.45% Medicare on all wages — with employers matching both.
Self-employed people pay both halves as self-employment tax (15.3% combined), though half is deductible against income tax. High earners also pay an Additional Medicare Tax of 0.9% above $200,000 (single) or $250,000 (married).
Formula & worked example
Medicare = wages × 1.45% (2.9% self-employed)
Additional Medicare = (wages − threshold) × 0.9%
Worked example: $150,000 in wages as an employee → Social Security is $9,300 (under the cap) and Medicare $2,175, for a total FICA of $11,475. Your employer pays the same again. Self-employed, you would owe $22,950, half of which is deductible.
How to use this fica tax calculator
- Enter your annual wages or net self-employment income.
- Select employee or self-employed — the rate doubles for the latter.
- Filing status sets the Additional Medicare Tax threshold.
- Note that Social Security stops at the wage base but Medicare never does.
Smart tips
- Social Security tax stops once wages exceed the annual base, so high earners see their paycheck rise late in the year.
- Self-employed filers can deduct half of self-employment tax against income tax, which softens the double burden.
- An S-corporation election can reduce self-employment tax on distributions, though you must pay yourself reasonable wages.
- FICA is not reduced by 401(k) contributions — only income tax is.
- The Additional Medicare Tax applies to the individual, so a married couple may owe it even when neither alone exceeds the threshold.
Frequently asked questions
What is the FICA tax rate?
7.65% for employees (6.2% Social Security plus 1.45% Medicare), matched by the employer. Self-employed people pay 15.3%.
What is the Social Security wage base for 2026?
$184,500. Wages above that are not subject to the 6.2% Social Security tax, though Medicare still applies.
Do 401(k) contributions reduce FICA?
No. Traditional 401(k) contributions reduce income tax but FICA is calculated on gross wages before that deduction.
What is the Additional Medicare Tax?
An extra 0.9% on wages above $200,000 (single) or $250,000 (married filing jointly), paid by the employee only.
Want the theory behind the numbers? Browse the Money Blog for worked guides.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: IRS — Topic no. 751: 6.2% Social Security and 1.45% Medicare rates and the wage base, IRS — self-employment tax: 15.3% combined rate. How we check these numbers.