What is FICA?
FICA stands for Federal Insurance Contributions Act. It's the law that requires employers to withhold two taxes from every employee paycheck: Social Security (6.2%) and Medicare (1.45%). Together they total 7.65% of your gross wages.
Your employer also pays a matching 7.65% on your behalf — so the total contribution going toward Social Security and Medicare is actually 15.3% of your wages, split evenly between you and your employer.
Social Security vs Medicare — what's the difference?
Funds retirement benefits, disability insurance, and survivor benefits for workers and their families.
2026 wage cap: $184,500. Once your earnings exceed $184,500, Social Security withholding stops for the rest of the year — you'll notice a bump in take-home pay at that point.
Funds health insurance coverage for Americans aged 65 and older, and for certain disabled individuals.
No wage cap. Medicare applies to all wages. High earners (above $200,000 single / $250,000 MFJ) also pay an additional 0.9% Additional Medicare Tax.
2026 FICA rates at a glance
| Tax | Employee rate | Employer rate | Wage cap (2026) |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45% | 1.45% | No cap |
| Additional Medicare Tax | 0.9% | None | Wages above $200K (single) |
| Total employee FICA | 7.65% | 7.65% | — |
How much FICA do I pay on my salary?
FICA is straightforward to calculate. Below $184,500 in wages, you pay 7.65% flat. Above that, Social Security stops and you only pay 1.45% Medicare.
| Annual salary | Social Security | Medicare | Total FICA/yr | Per bi-weekly paycheck |
|---|---|---|---|---|
| $40,000 | $2,480 | $580 | $3,060 | $118 |
| $60,000 | $3,720 | $870 | $4,590 | $177 |
| $75,000 | $4,650 | $1,088 | $5,738 | $221 |
| $100,000 | $6,200 | $1,450 | $7,650 | $294 |
| $150,000 | $9,300 | $2,175 | $11,475 | $441 |
| $184,500 | $11,439 (max) | $2,675 | $14,114 | $543 |
| $200,000 | $11,439 (max) | $2,900 | $14,339 | $552 |
| $250,000 | $11,439 (max) | $4,075 * | $15,514 | $597 |
* Includes 0.9% Additional Medicare Tax on wages above $200,000.
Does my employer pay FICA too?
Yes — your employer pays a matching 7.65% on top of what's withheld from your paycheck. This is separate from your withholding and comes entirely out of the employer's pocket. You never see it on your pay stub, but it's part of the total cost of employing you.
On a $75,000 salary, your employer pays an additional $5,738 in FICA taxes on your behalf — meaning the full FICA contribution is $11,476 combined, split evenly between you and your employer.
FICA for self-employed workers
If you're self-employed, you pay both sides of FICA — the employee portion and the employer portion — for a total of 15.3%. This is called the Self-Employment Tax.
What does FICA fund?
Social Security
Your Social Security contributions go into the Social Security trust funds. When you retire (as early as age 62, with full benefits at 67 for most workers), you receive monthly retirement benefits based on your 35 highest-earning years. Social Security also pays disability benefits if you become unable to work, and survivor benefits to eligible family members.
Medicare
Medicare contributions fund health insurance coverage for Americans aged 65 and older. When you turn 65, you become eligible for Medicare Part A (hospital insurance, premium-free if you paid FICA for 10+ years) and Part B (medical insurance). The Medicare taxes you pay today fund current retirees — your benefits will be funded by future workers.
Can you avoid FICA tax?
For most workers, no. FICA is mandatory for all US employees covered under Social Security. There are narrow exceptions — certain nonresident aliens on specific visa types, some student workers employed by their university, and members of qualifying religious groups who have filed an exemption. But the overwhelming majority of US workers pay FICA on every paycheck.
What you can do is reduce your federal and state income tax through 401(k) contributions, HSA contributions, and other pre-tax deductions. These do not reduce FICA — Social Security and Medicare are calculated on gross wages regardless of pre-tax deductions.
FICA vs federal income tax — what's the difference?
People often confuse FICA with federal income tax. They're separate taxes with different rules:
| FICA tax | Federal income tax | |
|---|---|---|
| What it funds | Social Security + Medicare | General federal spending |
| Rate | Fixed 7.65% | Progressive 10%–37% |
| Affected by standard deduction? | No — based on gross wages | Yes — reduces taxable income |
| Affected by 401(k)? | No | Yes — reduces taxable income |
| Employer match? | Yes — 7.65% | No |
| Can you get a refund? | Rarely | Yes — if over-withheld |
Frequently asked questions
Why did my FICA withholding stop mid-year?
If your Social Security withholding stops partway through the year, it's because you've hit the 2026 wage cap of $184,500. Once your cumulative wages exceed that amount, Social Security (6.2%) stops being withheld. Medicare (1.45%) continues on all wages — it never stops.
Why is my FICA different from my coworker's?
FICA is calculated on gross wages only, so it should be proportional to salary. Differences can arise if one person has hit the $184,500 SS wage cap and the other hasn't, or if bonuses, commissions, or other compensation items create differences in gross wages.
Is FICA the same as Social Security tax?
Not exactly. FICA includes both Social Security (6.2%) and Medicare (1.45%). Social Security tax is one component of FICA. Sometimes people use the terms interchangeably but they're not identical — FICA is the umbrella that covers both taxes.
Do I get my FICA taxes back when I retire?
Not as a direct refund — FICA isn't a savings account. Instead, your contributions earn you credits toward Social Security benefits (monthly income in retirement) and Medicare eligibility (health coverage at 65). The amount you receive in retirement is based on your earnings history, not a dollar-for-dollar return of what you paid in.