What is FICA on my paycheck?

FICA is the Federal Insurance Contributions Act — the payroll tax that funds Social Security and Medicare. It appears as two lines on your payslip: 6.2% for Social Security and 1.45% for Medicare, 7.65% combined. Your employer pays the same amount again on your behalf.

Why did my take-home pay suddenly increase mid-year?

You almost certainly crossed the Social Security wage base of $184,500. Above that, Social Security tax stops for the rest of the calendar year, so your paychecks rise by 6.2% of gross — then drop back in January when the base resets. The maximum anyone pays in 2026 is $11,439.

Does a 401(k) contribution reduce my FICA?

No. A traditional 401(k) deferral reduces your income tax but not Social Security or Medicare — it comes out of W-2 Box 1 but not Boxes 3 and 5. Health insurance premiums, HSA and FSA contributions do reduce all three, which makes them more tax-efficient per dollar. More on this .

What is the Additional Medicare Tax?

An extra 0.9% on wages above $200,000 for single filers and $250,000 for joint filers. Unlike Social Security, Medicare has no upper ceiling — and above these thresholds the rate rises rather than stopping.

Do self-employed people pay more?

They pay both halves — 15.3% as self-employment tax — because there is no employer to cover the other side. Half of it is deductible against income tax, and the same wage base and thresholds apply.

FICA Explained: Social Security and Medicare on Your Paycheck

Federal income tax gets all the attention, but FICA is often the larger deduction for middle-income earners. It funds Social Security and Medicare, it applies to your gross wages with no standard deduction to soften it, and it starts at the first dollar you earn.

The two components

Social Security

6.2%

On wages up to $184,500 for 2026, then nothing. Maximum contribution: $11,439.

Medicare

1.45%

On every dollar, with no ceiling. Plus 0.9% above $200,000 single / $250,000 joint.

Your employer matches the 7.65% you pay, so 15.30% of your wages goes into these programmes in total. Economists generally argue the employer half is ultimately borne by the employee through lower wages — worth knowing when you think about the true cost of employing you.

The wage base, and the mid-year pay rise

The Social Security ceiling produces one of the most confusing things on a payslip. Once your year-to-date wages pass $184,500, Social Security withholding stops entirely — and your net pay rises by 6.2% of gross for the rest of the year. In January it resets and your pay drops again.

Nothing has changed about your salary. Many people assume a payroll error. It is simply the ceiling, and our calculator spreads the effect evenly across the year rather than modelling the month-to-month step, which is why it reports an annual average.

FICA at different salaries

FICA contributions by salary, tax year 2026
Gross salary	Social Security	Medicare	Additional Medicare	Total FICA	% of gross
$50,000	$3,100	$725	—	$3,825	7.7%
$100,000	$6,200	$1,450	—	$7,650	7.7%
$184,500· wage base	$11,439	$2,675	—	$14,114	7.7%
$250,000	$11,439	$3,625	$450	$15,514	6.2%
$400,000	$11,439	$5,800	$1,800	$19,039	4.8%

Notice the shape: FICA is a flat 7.65% up to the wage base, then its share of income falls as salary rises, before ticking back up slightly from the Additional Medicare Tax. This is why FICA is regressive relative to income tax, and why it dominates the tax burden for lower and middle earners.

What FICA is not

Not reduced by the standard deduction. It applies to gross wages from dollar one.
Not reduced by a 401(k). Only Section 125 benefits — health premiums, HSA, FSA — cut your FICA wages.
Not charged on investment income. Dividends, capital gains and rent are outside FICA, though high earners may owe the separate 3.8% Net Investment Income Tax.
Not refundable through your return. Unlike over-withheld income tax, you do not get FICA back — except in the rare case of over-withholding past the wage base from multiple employers.

See exactly what FICA costs you at your own salary with the take-home pay calculator — it is broken out as its own lines rather than folded into a single "tax" figure.