FICA Tax Calculator: What You Pay for Social Security and Medicare in 2026

FICA stands for the Federal Insurance Contributions Act. It funds Social Security and Medicare. It's one of the most universal taxes Americans pay. Nearly every worker with earned income pays it, and it's calculated before any deductions or credits.

For employees, it's 7.65% of wages. For the self-employed, it's 15.3%. Because they pay both the employee and employer shares.

The 2026 FICA Breakdown

Social Security tax:

• Employee rate: 6.2%
• Employer rate: 6.2% (on top of salary, not visible to employee)
• Self-employed rate: 12.4%
• Wage base: $176,100 (only the first $176,100 of wages are subject to SS tax)

Medicare tax:

• Employee rate: 1.45%
• Employer rate: 1.45%
• Self-employed rate: 2.9%
• No wage base cap. All wages subject to Medicare

Combined FICA for employees: 7.65% Combined for self-employed: 15.3%

Sample FICA Calculations

W-2 employee earning $75,000:

• Social Security: $75,000 x 6.2% = $4,650
• Medicare: $75,000 x 1.45% = $1,088
• Total employee FICA: $5,738
• Employer also pays: $5,738 (not visible on your paycheck)

W-2 employee earning $200,000:

• Social Security: $176,100 x 6.2% = $10,918 (capped at wage base)
• Medicare: $200,000 x 1.45% = $2,900
• Additional Medicare Tax: ($200,000 - $200,000) x 0.9% = $0 (single filer; kicks in above $200K)
• Total employee FICA: $13,818

W-2 employee earning $250,000 (single filer):

• Social Security: $176,100 x 6.2% = $10,918
• Medicare: $250,000 x 1.45% = $3,625
• Additional Medicare Tax: ($250,000 - $200,000) x 0.9% = $450
• Total employee FICA: $14,993

The Additional Medicare Tax

High earners pay an extra 0.9% Medicare surcharge on wages above:

• $200,000 for single filers
• $250,000 for married filing jointly
• $125,000 for married filing separately

The 0.9% applies only to the amount above the threshold. Employers are required to withhold the additional Medicare tax when an employee's wages exceed $200,000 in a calendar year, regardless of the employee's filing status.

If your household income crosses these thresholds through two-earner combined income, you may owe the additional tax when you file, even if neither employer withheld it.

Self-Employed FICA: The Full 15.3%

When you work for yourself, you pay both the employee and employer portions of FICA. On $100,000 in net self-employment income:

• SE tax base: $100,000 x 92.35% = $92,350 (the 92.35% factor adjusts for the employer deduction)
• Social Security: $92,350 x 12.4% = $11,451
• Medicare: $92,350 x 2.9% = $2,678
• Total SE tax: $14,129

The self-employed deduction: You can deduct half of the SE tax from your gross income before calculating income tax. On $14,129 in SE tax, the deduction is $7,065. At a 24% income tax rate, that saves $1,696.

Net Investment Income Tax (NIIT)

The 3.8% Net Investment Income Tax is not technically a FICA tax, but it's often confused with Medicare surcharges. It applies to:

• Investment income (dividends, capital gains, rental income, interest)
• For individuals with modified AGI above $200,000 (single) or $250,000 (MFJ)
• The tax applies to the lesser of net investment income or the amount above the threshold

NIIT does not apply to earned income (wages or SE income). It's purely a tax on passive investment returns above the threshold.

| Income Type | Social Security | Medicare | Additional Medicare | NIIT | |-------------|-----------------|----------|---------------------|------| | Wages | 6.2% | 1.45% | 0.9% over threshold | No | | Self-employment | 12.4% | 2.9% | 0.9% over threshold | No | | Dividends | No | No | No | 3.8% over threshold | | Capital gains | No | No | No | 3.8% over threshold | | Rental income | No | No | No | 3.8% over threshold |

What FICA Pays For

Social Security: Your lifetime contributions determine your benefit. The formula is progressive. Lower earners replace a higher percentage of their pre-retirement income. The maximum monthly benefit in 2026 for someone retiring at full retirement age (67) is approximately $3,800/month.

Medicare: Covers hospital care (Part A) and outpatient care (Part B) starting at 65. Most people qualify for premium-free Part A if they've paid FICA for at least 40 quarters (10 years of work).

FICA Exemptions

Some workers are exempt from FICA:

• Certain student workers at their school
• Some government employees covered by separate pension systems
• Non-resident alien employees on specific visa types
• Religious organization employees who've opted out

Run the Numbers

Use the CalcMoney Self-Employment Tax Calculator to calculate your exact FICA obligations as a W-2 employee or self-employed individual, including the Additional Medicare Tax and your effective deduction for SE tax.

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