FICA stands for the Federal Insurance Contributions Act. It is the payroll tax that funds Social Security and Medicare, and it comes out of almost every US paycheck, whatever state you live in.
FICA rates for 2026
| Tax | Employee rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Additional Medicare | 0.9% | Wages over $200,000* |
*$250,000 for married couples filing jointly and $125,000 for married filing separately. Employers start withholding it once your wages pass $200,000 in the year.
Your employer pays a matching 6.2% and 1.45% on top. Self-employed people pay both halves, 15.3% in total, through self-employment tax.
The Social Security wage base
Social Security tax stops once your wages for the year reach $184,500. If you earn more than that, your paychecks get noticeably bigger late in the year. Medicare has no cap.
Does a 401(k) reduce FICA?
No. Traditional 401(k) contributions lower your income tax but not FICA. Pre-tax health insurance premiums under a Section 125 cafeteria plan do lower FICA, because they are excluded from wages.
Example
On a $75,000 salary you pay $4,650 Social Security and $1,087.50 Medicare a year, $5,737.50 in total, or about $221 a biweekly paycheck.
See every deduction on your own salary with the paycheck calculator.