FICA stands for the Federal Insurance Contributions Act. It's a mandatory US payroll tax that funds Social Security and Medicare. In 2026, employees pay 6.2% of wages for Social Security (up to $176,100) and 1.45% for Medicare (no cap) — a total of 7.65%. Employers match this amount dollar-for-dollar.

What Is FICA Tax? Social Security & Medicare Explained (2026)

Q: How much FICA tax do I pay in 2026?

In 2026, employees pay 7.65% of gross wages in FICA tax: 6.2% for Social Security on wages up to $176,100, and 1.45% for Medicare on all wages. On a $75,000 salary, that's $5,738 in annual FICA taxes. High earners pay an additional 0.9% Medicare surtax on wages above $200,000.

Q: Do self-employed workers pay FICA?

Yes — self-employed individuals pay the full 15.3% self-employment tax (both the employee and employer portions). However, you can deduct half of self-employment tax from your taxable income on your federal return, which partially offsets the higher rate.

Q: Can I opt out of FICA taxes?

Generally no — FICA is mandatory for most US employees and self-employed workers. Limited exemptions exist for certain religious groups (who must apply with the IRS), some nonresident aliens on specific visas, and certain student employees. Most workers cannot opt out.

5 min read

Updated March 2026

Tax Basics

What Is FICA Tax?

FICA stands for the Federal Insurance Contributions Act. It's the mandatory payroll tax that funds two of America's largest social programs: Social Security and Medicare. If you've ever looked at your pay stub and wondered what "OASDI" or "SS Tax" and "Med Tax" mean — that's FICA.

Unlike federal income tax, which varies based on your income and deductions, FICA is a flat percentage applied to every dollar you earn (up to certain limits). It's deducted from every paycheck automatically.

FICA = Social Security Tax (6.2%) + Medicare Tax (1.45%) = 7.65% of gross wages

FICA Tax Rates for 2026

Tax	Rate	Wage Limit	Who Pays
Social Security	6.2%	$176,100	Employee + Employer (matched)
Medicare	1.45%	No limit	Employee + Employer (matched)
Additional Medicare	0.9%	Over $200,000	Employee only
Total (employee)	7.65%	—	—

How Much FICA Do You Actually Pay?

Here's how FICA plays out at different income levels in 2026:

Annual Salary	Social Security (6.2%)	Medicare (1.45%)	Total FICA
$40,000	$2,480	$580	$3,060
$60,000	$3,720	$870	$4,590
$75,000	$4,650	$1,088	$5,738
$100,000	$6,200	$1,450	$7,650
$176,100+	$10,918 (max)	$2,553+	$13,471+

💡 Remember: Your employer pays an equal amount of FICA on top of your wages. On your $75,000 salary, your employer also pays $5,738 in FICA — making the total FICA contribution $11,476 between you both.

Social Security Tax: How It Works

The Social Security portion of FICA (6.2%) funds retirement, disability, and survivor benefits. It only applies to wages up to the Social Security wage base — $176,100 in 2026. Once your earnings exceed this threshold, no more Social Security tax is withheld for the rest of the year.

This is why high earners see their FICA withholding drop mid-year — they've hit the wage base cap. The wage base increases most years to keep pace with average wage growth.

Medicare Tax: How It Works

The Medicare portion (1.45%) funds health coverage for Americans 65 and older, and certain disabled individuals. Unlike Social Security, Medicare has no wage cap — you pay 1.45% on every dollar you earn.

High earners face an additional 0.9% Medicare surtax on wages above:

$200,000 for single filers
$250,000 for married filing jointly
$125,000 for married filing separately

Employers withhold this additional 0.9% once your wages exceed $200,000 — regardless of your filing status. You may owe more (or receive a refund) when you file your annual return.

FICA for Self-Employed Workers

If you're self-employed, you pay self-employment tax instead of FICA — but it covers the same programs at the same rates. The key difference: you pay both the employee and employer portions yourself.

Self-employment tax = 15.3% (12.4% Social Security + 2.9% Medicare)
Deduction: You can deduct 50% of SE tax from your taxable income

The deduction partially offsets the higher rate. On $75,000 of self-employment income, you'd pay ~$10,597 in SE tax but deduct ~$5,299 from taxable income.

Who Is Exempt From FICA?

Most US workers must pay FICA, but limited exemptions exist for:

Certain religious groups — members of recognized sects that oppose insurance (must file IRS Form 4029)
Some nonresident aliens — on specific visa types (F-1, J-1, M-1, Q-1 student visas)
Certain student employees — working for their own college or university
Some government workers — covered by alternative pension systems

FICA vs Federal Income Tax: Key Differences

Feature	FICA Tax	Federal Income Tax
Rate	Flat 7.65%	Progressive 10%–37%
Based on deductions?	No	Yes
Wage cap?	Yes (SS only, $176,100)	No
Employer match?	Yes	No
Purpose	Social Security + Medicare	General federal spending

Frequently Asked Questions

What is FICA tax?

FICA (Federal Insurance Contributions Act) is a mandatory payroll tax funding Social Security and Medicare. Employees pay 7.65% of wages: 6.2% for Social Security and 1.45% for Medicare. Employers match this amount.

How much FICA tax do I pay in 2026?

You pay 7.65% of gross wages up to $176,100, then 1.45% on wages above that. On a $75,000 salary: $4,650 (SS) + $1,088 (Medicare) = $5,738 total FICA for the year.

Do self-employed workers pay FICA?

Self-employed workers pay a 15.3% self-employment tax (both employee and employer portions). You can deduct half of this from your taxable income. Use Schedule SE when filing your annual return.

Can I opt out of FICA taxes?

Generally no. FICA is mandatory for most US employees. Limited exemptions exist for certain religious groups, some nonresident aliens on student visas, and some government workers with alternative pension coverage.