FICA Tax Calculator

FICA stands for the Federal Insurance Contributions Act. It funds Social Security (6.2% up to the annual wage base) and Medicare (1.45% on all wages, plus an additional 0.9% over $200,000 for single filers). Employers match employee contributions dollar for dollar. Self-employed individuals pay both the employee and employer share, totaling 15.3% on net earnings up to the wage base.

The Social Security wage base is the maximum amount of earnings subject to the 6.2% Social Security tax each year. In 2026 the limit is $184,500 (up from $176,100 in 2025). Wages above this threshold are not subject to Social Security tax but remain fully subject to the 1.45% Medicare tax. The IRS adjusts the wage base annually for inflation. Medicare tax has no income ceiling.

FICA taxes are separate from federal income taxes. They appear as distinct line items on your paystub. Unlike income tax, FICA has no deductions or exemptions at the employee level. However, self-employed individuals may deduct the employer-equivalent half of SE tax from adjusted gross income when calculating their federal income tax liability.

The Additional Medicare Tax is 0.9% on wages, self-employment income, and railroad retirement income above $200,000 for single filers or $250,000 for married filing jointly. Employers withhold this tax once wages exceed $200,000 in a calendar year regardless of filing status. You reconcile the correct amount on Form 8959. A tax professional can help with withholding adjustments.