Updated June 16, 2026 · 5 min read
FICA stands for the Federal Insurance Contributions Act — the payroll tax that funds Social Security and Medicare. For employees it's a flat 7.65% of wages: 6.2% for Social Security (on the first $184,500 of 2026 wages) and 1.45% for Medicare (on all wages, with an extra 0.9% above $200,000). Your employer matches your contribution dollar-for-dollar, so a total of 15.3% goes to these programs on your behalf.
| Component | Employee rate | Applies to |
|---|---|---|
| Social Security (OASDI) | 6.2% | First $184,500 of wages |
| Medicare (HI) | 1.45% | All wages |
| Additional Medicare | +0.9% | Wages above $200,000 |
| Total FICA | 7.65% | Plus 0.9% surtax for high earners |
On your pay stub these may appear as OASDI (Old-Age, Survivors, and Disability Insurance — Social Security) and Medicare or Med/EE. Together they are your FICA withholding.
Social Security tax only applies to the first $184,500 of wages in 2026. Once you earn above that in a calendar year, the 6.2% stops and your paychecks get larger for the rest of the year. The cap resets every January 1. Medicare has no cap — the 1.45% applies to every dollar.
FICA is split 50/50. You pay 7.65% and your employer pays a matching 7.65%, for a combined 15.3% sent to Social Security and Medicare. You only see your half on your pay stub.
If you're self-employed, there's no employer to match you, so you pay the full 15.3% as self-employment tax (12.4% Social Security up to the wage base + 2.9% Medicare). You can deduct half of it on your income tax return.
FICA is the 7.65% payroll tax for Social Security (6.2%) and Medicare (1.45%). It may show on your stub as OASDI and Medicare. It funds retirement, disability, and hospital insurance benefits.
7.65% for employees — 6.2% Social Security on the first $184,500 of wages plus 1.45% Medicare on all wages. Wages over $200,000 carry an extra 0.9% Medicare surtax.
No. FICA is a separate, flat payroll tax for Social Security and Medicare. Federal income tax is a progressive tax with brackets, deductions, and credits, withheld based on your W-4.
Nearly all employees do. Social Security stops at the $184,500 wage base each year, but Medicare's 1.45% applies to all wages with no cap. Some specific groups (certain students, some government pensions) have exceptions.
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