What is it for?
FICA stands for the Federal Insurance Contributions Act. The money funds Social Security (retirement and disability benefits) and Medicare (health insurance for people 65 and over). It’s a federal tax, so it’s the same in every state.
How much do I pay?
| Tax | You pay | On |
|---|---|---|
| Social Security | 6.2% | Pay up to $184,500 |
| Medicare | 1.45% | All your pay |
| Extra Medicare | 0.9% | Pay over $200,000 |
Example: $60,000 a year
- Social Security: 6.2% × $60,000 = $3,720
- Medicare: 1.45% × $60,000 = $870
Total FICA: $4,590 a year, or about $177 a paycheck if you’re paid every two weeks.
Your employer pays the same 7.65% again on top. That part doesn’t come out of your paycheck.
FICA at different salaries
What’s withheld in a year:
| Pay in 2026 | Social Security | Medicare | Total |
|---|---|---|---|
| $30,000 | $1,860 | $435 | $2,295 (7.65%) |
| $60,000 | $3,720 | $870 | $4,590 (7.65%) |
| $100,000 | $6,200 | $1,450 | $7,650 (7.65%) |
| $184,500 | $11,439 | $2,675 | $14,114 (7.65%) |
| $250,000 | $11,439 | $4,075 | $15,514 (6.21%) |
| $500,000 | $11,439 | $9,950 | $21,389 (4.28%) |
The share falls above the Social Security limit, because Social Security stops but Medicare doesn’t. Above $200,000, the extra 0.9% Medicare tax slows the fall a little.
If you earn a lot
Social Security has a limit. Once your pay for the year reaches $184,500, Social Security tax stops. The most anyone pays is $11,439. If you earn more than that, your paychecks get bigger late in the year. In 2027 the limit rises to $192,300.
Extra Medicare tax. Employers take an extra 0.9% on pay above $200,000 a year. What you really owe depends on your filing status: $200,000 if you’re single, $250,000 if married filing jointly, $125,000 if married filing separately. Any difference is sorted out on your tax return.
Your employer pays the same Social Security and 1.45% Medicare on top, but not the extra 0.9%.
Two jobs? Each employer takes Social Security separately, so you can pay more than the maximum. You get the extra back when you file your tax return.
What you get for it
FICA isn’t just a cost. The Social Security part earns you credits: you can earn up to four a year, and 40 credits, about 10 years of work, qualify you for a retirement benefit. Your benefit is based on your 35 highest-earning years, so years of higher pay raise it. The Social Security calculator shows what you’d get at each claiming age.
What lowers FICA?
- Lowers it: health insurance paid through your employer’s cafeteria (Section 125) plan, and HSA contributions through payroll.
- Doesn’t lower it: 401(k) contributions. They cut your income tax, but you still pay FICA on that money.
Self-employed?
You pay both halves yourself: 15.3% self-employment tax on 92.35% of your profit, with the same Social Security limit. You can deduct half of it from your income for income tax.
See your own numbers
The paycheck calculator shows your Social Security and Medicare for each paycheck and for the year. For income tax, see the 2026 federal tax brackets.