Quick facts
- Social Security tax, 2026: 6.2% for the employee and 6.2% for the employer, on wages up to $184,500 (IRS Publication 15 (2026)) [VERIFY ANNUALLY].
- Medicare tax, 2026: 1.45% for the employee and 1.45% for the employer, with no wage base limit (IRS Publication 15 (2026)) [VERIFY ANNUALLY].
- Additional Medicare Tax, 2026: 0.9% on an employee's wages above $200,000 in a calendar year; employers withhold it and there is no employer match (IRS Topic 751) [VERIFY ANNUALLY].
What it means in practice
FICA covers two taxes: Social Security and Medicare. The employer withholds the employee's share from each paycheck and also pays a matching employer share. For 2026, the IRS lists the Social Security rate as 6.2% each for employer and employee, and the Medicare rate as 1.45% each. That makes 7.65% from the employee and 7.65% from the employer on wages up to the Social Security limit.
The two taxes work differently at higher pay. Social Security tax applies only up to an annual wage base limit, which the IRS lists as $184,500 for 2026. Medicare tax has no wage base limit, so it applies to all covered wages. Separately, the IRS states that employers are responsible for withholding a 0.9% Additional Medicare Tax on wages paid to an employee above $200,000 in a calendar year, regardless of filing status. Only the employee pays this additional tax; the employer does not match it.
FICA is calculated on an employee's gross income from wages, so it is one of the amounts taken out between gross pay and net pay. Because it is part of every pay run, it is a core piece of payroll. Overtime wages are generally part of covered wages as well; see overtime.
Example. In 2026, an employee is paid $1,000 in wages for a pay period and is under the wage base limit. The employer withholds $62.00 for Social Security and $14.50 for Medicare, a total of $76.50, and the employer owes its own matching $76.50.
FICA is a federal tax, and the rates above are the federal baseline. States and cities may have their own payroll taxes and withholding rules that apply in addition to FICA. This entry does not cover them, nor does it cover special cases such as certain types of workers or wages. Confirm the details for your situation with the IRS or a qualified professional.
Why it matters and common mistakes
Using a prior year's rates or wage base. The Social Security wage base limit changes, so the figure used in payroll needs updating each year.
Forgetting the employer share. The employer matches the employee's Social Security and Medicare amounts in addition to withholding the employee's share.
Forgetting the Additional Medicare Tax. The IRS states employers are responsible for withholding it on wages above $200,000, and there is no employer match.
How Remindax helps
Remindax helps you track the dates and deadlines tied to payroll tax rate and wage base reviews and sends reminders before they're due. Remindax does not provide legal, tax, or HR advisory services, and this page is for general informational purposes only - consult a qualified attorney, accountant, or HR professional for guidance specific to your situation.
Related terms
See all terms in Payroll Tax & Withholding.
Sources & References
- IRS - Topic No. 751, Social Security and Medicare withholding rates - 2026 Social Security and Medicare rates, $184,500 wage base, 0.9% Additional Medicare Tax above $200,000, employer withholding responsibility
- IRS - Publication 15 (2026), Employer's Tax Guide - 6.2% and 1.45% rates each for employer and employee, $184,500 wage base limit, no Medicare wage base limit
Last reviewed: October 2026. Figures are reviewed annually - see Sources & References for current figures.