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FICA Taxes Explained
FICA stands for the Federal Insurance Contributions Act — the payroll taxes that fund Social Security and Medicare. Here is how it works in 2026.
Social Security: 6.2%
Employees pay 6.2% of wages toward Social Security, up to the 2026 wage base of $184,500. Earnings above that are not subject to Social Security tax, so the maximum employee contribution is capped.
Medicare: 1.45% (plus 0.9%)
Medicare is 1.45% of all wages with no cap. High earners pay an additional 0.9% Medicare surtax on income above $200,000 (single) or $250,000 (married filing jointly).
Who pays it?
Your employer withholds FICA automatically and matches your Social Security and base Medicare contributions. Self-employed people pay both halves via self-employment tax.
Does 401(k) reduce FICA?
No. Pre-tax 401(k) contributions lower your income tax but not your FICA — Social Security and Medicare apply to your full gross wages.
See your exact FICA withholding with our take-home pay calculator.