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What Is FICA Tax and How Do I Calculate It?

A practical 2026 FICA tax guide explaining Social Security tax, Medicare tax, Additional Medicare Tax, employee and employer shares, wage base limits, W-2 boxes, self-employment tax, and worked examples.

Published: May 9, 2026Updated: May 9, 2026

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Short Answer: FICA Is Social Security Plus Medicare

FICA tax is the payroll tax for Social Security and Medicare. For most employees, the basic employee rate is 7.65%: 6.2% for Social Security plus 1.45% for Medicare. Employers generally match that same 7.65%, so the combined employer-plus-employee rate is 15.3% before Additional Medicare Tax.

The calculation is not the same as federal income tax. FICA uses payroll-tax wages, a Social Security wage base, a Medicare rate with no wage cap, and a separate Additional Medicare Tax rule for higher earners. Use the FICA Tax Calculator when you want this payroll-tax layer separated from income tax withholding.

2026 FICA Tax Rates

The IRS and SSA list the 2026 Social Security wage base as $184,500. Social Security tax stops after covered wages reach that amount for the year. Medicare tax does not stop at a wage limit, and high earners may also have Additional Medicare Tax.

Component	Employee rate	Employer rate	Combined rate	Wage limit
Social Security tax	6.2%	6.2%	12.4%	$184,500 for 2026
Medicare tax	1.45%	1.45%	2.9%	No wage base limit
Additional Medicare Tax	0.9% above threshold	No employer match	Employee only	Applies above filing-status threshold; employer withholding starts after $200,000 of wages

How to Calculate FICA Tax

For a W-2 employee, calculate each part separately. The Social Security calculation uses Social Security wages and the annual wage base. The Medicare calculation uses Medicare wages and has no annual wage base limit.

Step	Detail	Math
1. Find Social Security wages	Use W-2 box 3 or taxable wages subject to Social Security.	Multiply wages up to $184,500 by 6.2% for the employee share.
2. Find Medicare wages	Use W-2 box 5 or wages subject to Medicare.	Multiply all Medicare wages by 1.45%. There is no Medicare wage cap.
3. Check Additional Medicare Tax	Compare Medicare wages, RRTA compensation, and self-employment income with the filing-status threshold.	Apply 0.9% to the excess amount when the threshold is exceeded.
4. Add the pieces	Employee FICA is Social Security tax plus Medicare tax plus any Additional Medicare Tax.	Do not add federal income tax withholding to FICA; it is a separate line item.

Worked Examples for Employees

These examples show the employee side only. Employers generally pay their own matching Social Security and Medicare share, but the employer share is not deducted from the employee paycheck.

Annual wages	Social Security	Medicare	Additional Medicare	Employee FICA
$60,000	$3,720.00	$870.00	$0.00	$4,590.00
$184,500	$11,439.00	$2,675.25	$0.00	$14,114.25
$250,000 single filer	$11,439.00	$3,625.00	$450.00	$15,514.00
$250,000 married filing jointly, one earner	$11,439.00	$3,625.00	$0 final liability if total Medicare wages are exactly $250,000	$15,064.00 before any employer-withheld Additional Medicare Tax credit

Additional Medicare Tax Is the High-Earner Layer

Additional Medicare Tax is 0.9% on Medicare wages, RRTA compensation, and self-employment income above the filing-status threshold. Employers must start withholding it when wages paid to an employee exceed $200,000 in a calendar year, even though the final tax return threshold can be different for married filing jointly or married filing separately.

Filing status	Threshold	Note
Single	$200,000	Employer withholding also starts once one employer pays more than $200,000 in Medicare wages.
Head of household	$200,000	Same taxpayer-level threshold as single filers.
Married filing jointly	$250,000	Two jobs can create tax due even if neither employer withholds Additional Medicare Tax.
Married filing separately	$125,000	This lower threshold can create tax due even when employer withholding has not started.

Where FICA Shows Up on Form W-2

On Form W-2, Social Security wages are usually in box 3 and Social Security tax withheld is in box 4. Medicare wages and tips are usually in box 5 and Medicare tax withheld is in box 6. Box 6 can include regular Medicare tax and Additional Medicare Tax withholding.

Box 1 federal taxable wages can differ from Social Security and Medicare wages because pre-tax deductions, retirement contributions, cafeteria plan benefits, and other payroll items do not always affect each tax the same way.

Self-Employment Tax Uses a Different Workflow

Freelancers, independent contractors, sole proprietors, and many partners do not have an employer withholding employee FICA from a paycheck. Instead, Schedule SE calculates self-employment tax. That system generally covers both the employee and employer shares of Social Security and Medicare tax.

Situation	Net earnings	Social Security	Medicare	Simplified result
$100,000 Schedule C net profit	$92,350 after the 92.35% Schedule SE adjustment	$11,451.40	$2,678.15	About $14,129.55 before income tax and the deductible half of SE tax
$250,000 Schedule C net profit, single filer	$230,875 after the 92.35% Schedule SE adjustment	$22,878.00	$6,695.38	About $29,851.26 after adding about $277.88 of Additional Medicare Tax
W-2 wages plus freelance profit	Combine wage Social Security coverage with Schedule SE limits	W-2 Social Security wages reduce remaining Social Security wage base	Medicare still applies broadly, with no wage cap	Use Schedule SE and Form 8959 when thresholds may apply

Self-employment tax is separate from federal income tax. If you are estimating a full tax return, use both the Self-Employment Tax Calculator and the Federal Income Tax Calculator.

FICA Is Not Federal Income Tax Withholding

FICA is a payroll-tax system. Federal income tax withholding is a prepayment toward your income tax return. Both can appear on the same paycheck, but they answer different questions and use different formulas.

This distinction matters for refunds. Social Security and Medicare withholding usually do not create your ordinary income tax refund. A refund is mostly about federal income tax withholding, estimated payments, refundable credits, and final income tax. FICA errors are usually handled through payroll correction, W-2 correction, or specific IRS procedures.

Official Video Search Note

I looked for a credible official or institutional video specifically explaining FICA tax calculation. I found IRS employment-tax resources and the IRS video library, but I did not find a suitable official FICA-specific video to embed. Because the available non-official videos were creator content rather than government or institutional guidance, this article uses IRS and SSA written sources instead of embedding an unrelated or lower-trust video.

Common FICA Calculation Mistakes

Most FICA mistakes happen because people use the wrong wage number, apply the wrong cap, or mix payroll tax with income tax. Check the tax layer before choosing a calculator.

Mistake	Fix
Treating FICA as federal income tax	FICA is Social Security and Medicare payroll tax. Federal income tax uses a separate withholding and return calculation.
Applying Social Security tax above the wage base	For 2026, the Social Security wage base is $184,500. Medicare has no wage cap.
Ignoring the employer share	Employees see only their withheld share on the paycheck, but employers generally owe a matching Social Security and Medicare share.
Missing Additional Medicare Tax	The 0.9% tax can apply above $200,000 for single and head of household filers, $250,000 for joint filers, and $125,000 for married filing separately.
Using gross business revenue for self-employment tax	Self-employment tax generally starts from net earnings, not gross receipts. Schedule SE applies its own adjustment.

FAQ: The Clean FICA Calculation

The clean FICA calculation is: Social Security wages up to the annual wage base times 6.2%, plus all Medicare wages times 1.45%, plus 0.9% Additional Medicare Tax when the threshold applies. For employers, add the matching Social Security and Medicare shares. For self-employed workers, use Schedule SE logic instead of employee paycheck logic.

Trust and Update Notes

This guide was prepared on May 9, 2026 using IRS Topic 751, IRS Publication 15 for 2026, IRS employment-tax guidance, SSA contribution and benefit base data, IRS Form 8959 guidance, IRS Schedule SE instructions, and IRS Understanding Taxes educational material. FICA rates, wage bases, filing thresholds, payroll forms, and self-employment instructions can change. Verify final payroll, tax return, and employer filing decisions against the current IRS and SSA sources.

Frequently Asked Questions

FICA tax is the payroll tax that funds Social Security and Medicare. For employees, it is generally 6.2% Social Security tax up to the annual wage base plus 1.45% Medicare tax on covered wages, with possible 0.9% Additional Medicare Tax for higher earners.

Multiply Social Security wages by 6.2% up to the annual wage base, multiply Medicare wages by 1.45%, then add any 0.9% Additional Medicare Tax when the threshold is exceeded. W-2 box 4 and box 6 show the amounts withheld for the year.

For 2026, the employee Social Security rate is 6.2% up to the $184,500 wage base and the employee Medicare rate is 1.45% with no wage cap. Employers generally match those two taxes. Additional Medicare Tax is 0.9% above the applicable threshold and has no employer match.

No. FICA is Social Security and Medicare payroll tax. Federal income tax is separate and depends on taxable income, filing status, deductions, credits, and withholding.

Self-employed people generally pay self-employment tax instead of employee FICA withholding. It covers both the employer and employee Social Security and Medicare shares through Schedule SE.