FICA
The combined Social Security and Medicare payroll tax — 7.65% for the employee in 2026.
Payroll glossary · Updated 2026-08-29
FICA stands for the Federal Insurance Contributions Act. It funds two programmes: Social Security at 6.2% of wages up to $184,500 for 2026, and Medicare at 1.45% of all wages with no ceiling. Your employer pays a matching 6.2% and 1.45%.
An Additional Medicare Tax of 0.9% applies to wages above $200,000, employee only, with no employer match. Employers apply that trigger regardless of filing status, which means married couples reconcile it on Form 8959.
FICA cannot be reduced by anything on your Form W-4. The only payroll election that reduces it is a Section 125 benefit — health premiums, an FSA, a payroll HSA — which lowers the wages FICA is charged on. A traditional 401(k) deferral does not.
Where you will see it
FICA appears on a stub either as a single line or, more commonly, split into two: Social Security or OASDI, and Medicare or HI. A third line labelled 'Add Med' or 'Medicare Additional' appears only once your wages pass $200,000 in the calendar year.
What it is often confused with
The single most useful FICA fact is that it stops. Social Security withholding ends the moment your year-to-date wages reach the annual base, which for a $250,000 salary paid bi-weekly happens around September — and your take-home rises by 6.2% of gross from that check until 1 January. That is the explanation for most 'why did my paycheck change' questions in both directions.
2026 reference figures
The numbers below are the 2026 amounts that most often come up alongside this term. They change every year, so check the tax year before relying on them.
| 2026 figure | Amount |
|---|---|
| Social Security rate and wage base | 6.2% up to $184,500 |
| Medicare rate | 1.45%, no cap |
| Additional Medicare Tax | 0.9% above $200,000 of wages |
| Standard deduction, single | $16,100 |
| Standard deduction, married filing jointly | $32,200 |
| 401(k) elective deferral limit | $24,500 |
| HSA limit, self-only | $4,400 |
| Health FSA limit | $3,400 |
| Supplemental wage withholding rate | 22% up to $1,000,000 |
| W-4 Step 3 credit per qualifying child | $2,200 |
Common questions
What is FICA on my pay stub?
The combined Social Security and Medicare tax, sometimes split into OASDI and Medicare lines.
Does everyone pay FICA?
Almost. Narrow exemptions apply to certain students, some visa holders, some public employees with qualifying pensions and certain religious objectors.