FICA Taxes Explained: Social Security and Medicare in 2026
Updated for tax year 2026 · 6 min read
What FICA actually is
FICA stands for the Federal Insurance Contributions Act. It is not general government revenue: it funds two specific programs, Social Security (retirement, disability, and survivor benefits) and Medicare (hospital insurance for people 65 and older). Your contributions today pay current beneficiaries, and your earnings record determines your own future benefit.
Your employer pays a matching 7.65% on top of your wages that never appears on your paystub, so the true cost of employing you includes 15.3% of payroll tax. Self-employed people pay both halves themselves, which is why freelancer tax bills sting.
The two caps that change everything at higher incomes
Social Security stops at the wage base: $184,500 in 2026 (up from $176,100 in 2025). Earn above that and the 6.2% simply switches off for the rest of the year, which is why high earners sometimes see their paychecks jump in the fall.
Medicare runs the other direction: it never stops, and above $200,000 (single) / $250,000 (married) an extra 0.9% Additional Medicare Tax kicks in, employee-only, no employer match.
FICA at common salaries (2026, single filer)
| Salary | Social Security | Medicare | Total FICA | % of gross |
|---|---|---|---|---|
| $30,000 | $1,860 | $435 | $2,295 | 7.6% |
| $50,000 | $3,100 | $725 | $3,825 | 7.6% |
| $75,000 | $4,650 | $1,088 | $5,738 | 7.6% |
| $100,000 | $6,200 | $1,450 | $7,650 | 7.6% |
| $150,000 | $9,300 | $2,175 | $11,475 | 7.6% |
| $200,000 | $11,439 | $2,900 | $14,339 | 7.2% |
| $300,000 | $11,439 | $5,250 | $16,689 | 5.6% |
Notice the pattern: FICA is a flat 7.65% until the Social Security cap, then the percentage falls as income rises. At $300,000 the blended rate is 5.6%. FICA is regressive by design, the opposite shape of the income tax.
Why your 401(k) doesn't reduce FICA
Traditional 401(k) contributions reduce your income tax but not FICA: Social Security and Medicare are computed on gross wages before deferrals. Only a few things escape FICA entirely, most notably employer health insurance premiums and HSA contributions made through payroll. This distinction is exactly why our calculator tracks FICA wages separately from taxable wages.
FICA FAQ
Can I opt out of FICA?+
For regular employees, no. Narrow exceptions exist (some state and local government workers with alternative pension systems, certain students working at their university, and some religious groups), but a standard W-2 job always pays FICA.
What is the Social Security cap for 2026?+
$184,500. Wages above that pay no Social Security tax for the rest of the year. The cap resets every January and rises with national average wage growth.
Do I get FICA back in my tax refund?+
No. FICA is separate from income tax withholding and is never refunded through your return (rare exception: if two employers together withheld Social Security beyond the cap, the excess comes back as a credit).
Does my employer really pay half?+
Yes. You pay 7.65% and your employer pays a matching 7.65%. Most economists find the employer half effectively comes out of wages in the long run, but on your paystub you only ever see your half.