FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare. Unlike income tax, they start with your first dollar of wages: there is no standard deduction.
2026 rates at a glance
| Tax | Employee rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Additional Medicare | 0.9% | Wages above $200,000 |
Your employer pays a matching 6.2% and 1.45% on top. Self-employed people pay both halves (15.3%) but can deduct half.
Examples
| Salary | Social Security | Medicare | Total FICA |
|---|---|---|---|
| $50,000 | $3,100 | $725 | $3,825 |
| $100,000 | $6,200 | $1,450 | $7,650 |
| $200,000 | $11,439 | $2,900 | $14,339 |
| $300,000 | $11,439 | $5,250 | $16,689 |
Once you pass the $184,500 wage base, Social Security withholding stops for the rest of the year, so high earners see larger paychecks late in the year.
What reduces FICA?
Health insurance premiums, HSA and FSA contributions through a Section 125 cafeteria plan are exempt from FICA. Traditional 401(k) deferrals are not: they reduce income tax only. Sources: SSA, IRS Topic 751.