What is the FICA Tax?
FICA funds Social Security and Medicare. Employees pay 6.2% Social Security (up to the 2026 wage base of 184,500) and 1.45% Medicare on all wages, with the employer matching both.
Self-employed people pay both halves — 15.3% total — through self-employment tax, though half is deductible and only 92.35% of net earnings is subject to it.
An Additional Medicare Tax of 0.9% applies above 200,000 single or 250,000 married, with no employer match.
Formula & worked example
Self-employed: 12.4% + 2.9% on 92.35% of net earnings
Plus 0.9% Additional Medicare above threshold
Worked example: an employee earning 120,000 pays 7,440 Social Security and 1,740 Medicare — 9,180 total, or 7.65%. The employer pays another 9,180 on top, meaning 18,360 goes to FICA in total.
How to use this fica tax calculator
- Enter your annual wages or self-employment net earnings.
- Select employee or self-employed — the rate doubles for the latter.
- Choose your filing status for the Additional Medicare threshold.
- Note that Social Security stops at the wage base but Medicare never does.
Smart tips
- Social Security tax stops once you cross the wage base — take-home rises noticeably late in the year for high earners.
- Self-employed filers can deduct half of self-employment tax when computing adjusted gross income.
- FICA applies to wages and self-employment income, not to investment income, which faces the separate 3.8% NIIT.
- S-corporation owners pay FICA only on reasonable salary, not distributions — a common and legitimate planning point.
- FICA is not affected by deductions or credits; it applies to gross wages regardless of your income tax bill.
Frequently asked questions
What is FICA tax?
The payroll tax funding Social Security (6.2%) and Medicare (1.45%) for employees, matched by the employer.
Is there a cap on FICA?
Social Security stops at the annual wage base, which is 184,500 for 2026 and is reset each year by the Social Security Administration. Medicare has no cap and adds 0.9% above 200,000 single or 250,000 married.
How much FICA do the self-employed pay?
15.3% on 92.35% of net earnings, since they pay both employee and employer halves. Half is deductible.
Can I avoid FICA?
Not on wages. Investment income is not subject to FICA, and S-corp distributions above a reasonable salary are exempt.
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.