What Is FICA Tax? 2026 Rates, Wage Base & What It Pays For
FICA Taxes
Key Takeaways [Updated on 09/07/2026]
FICA tax is the 7.65% payroll tax — required by the Federal Insurance Contributions Act — that funds Social Security and Medicare. In 2026 it applies to the first $184,500 of wages for the Social Security portion, with no cap on the Medicare portion.
Here’s what matters most about how they work:
- • Tax rate and split: Employees pay 7.65% of their wages (6.2% for Social Security + 1.45% for Medicare), and employers match it dollar for dollar; self-employed people pay both halves, 15.3% total.
- • 2026 wage base and work credits: The 6.2% Social Security portion applies only to the first $184,500 of wages, while the Medicare portion has no cap. These are also the taxes that earn you the work credits that qualify you for Social Security retirement and disability (SSDI) benefits.
| 7.65% The FICA rate withheld from an employee’s paycheck (your employer pays another 7.65%). |
$184,500 2026 Social Security wage base — the cap on wages taxed for Social Security. |
$1,890 2026 earnings needed to earn one Social Security work credit (max 4 per year). |
FICA Tax Rate 2026
| 2026 FICA | Employee | Employer | Self-employed |
|---|---|---|---|
| Social Security (OASDI) rate | 6.2% | 6.2% | 12.4% |
| Medicare (HI) rate | 1.45% | 1.45% | 2.9% |
| Total FICA rate | 7.65% | 7.65% | 15.3% |
| Social Security wage base | $184,500 | $184,500 | $184,500 |
| Maximum Social Security tax | $11,439 | $11,439 | $22,878 |
| Medicare wage cap | None | None | None |
| Additional Medicare Tax (0.9%) | Wages over $200,000 (single) / $250,000 (joint) | No match | Same thresholds |
What changed from 2025: the rates did not move — 7.65% and 15.3% are unchanged — but the Social Security wage base rose from $176,100 to $184,500, so the maximum Social Security tax an employee can pay went from $10,918 to $11,439. The earnings needed for one work credit also rose, from $1,810 to $1,890.
Source: IRS Topic No. 751; SSA 2026 COLA Fact Sheet (ssa.gov). The SSA announces the next year’s wage base each October.
“FICA” stands for the Federal Insurance Contributions Act — the 1935 law that created the payroll tax. If you look at a pay stub, FICA is usually split into two lines: one for Social Security (sometimes labeled “OASDI” or “FICA-SS”) and one for Medicare.
What FICA Taxes Actually Pay For
| Program | Employee rate | What it funds |
|---|---|---|
| Social Security (OASDI) | 6.2% | Old-Age, Survivors, and Disability Insurance — retirement, survivor, and SSDI benefits. |
| Medicare (HI) | 1.45% | Hospital Insurance — Medicare Part A. |
| Total employee FICA | 7.65% | Matched by your employer, for 15.3% combined. |
FICA Abbreviations On Your Paystub: FICA EE, FICA ER, OASDI, FICA MED
| Paystub code | What it means | 2026 rate |
|---|---|---|
| FICA EE | Your (employee) share of FICA — Social Security plus Medicare — withheld from your pay. | 7.65% |
| FICA ER | Your employer’s matching share. It is shown for information only and is not deducted from your wages. | 7.65% |
| OASDI / FICA OASDI / FICA SS / SS Tax | Old-Age, Survivors, and Disability Insurance — the Social Security portion of FICA, capped at $184,500 of wages in 2026. | 6.2% |
| FICA MED / MED EE / FICA HI / Medicare Tax | The Medicare Hospital Insurance portion of FICA. No wage cap. | 1.45% |
| FICA MED ER / OASDI ER | Employer’s matching Medicare or Social Security share (informational). | 1.45% / 6.2% |
| ADDL MED / Medicare Surtax | Additional Medicare Tax on wages above $200,000 in a year (no employer match). | 0.9% |
| SECA / SE Tax | Self-Employment Contributions Act tax — FICA for self-employed workers, paid with your income tax return. | 15.3% |
| YTD | Year-to-date total withheld. When YTD OASDI wages reach $184,500, the Social Security line stops for the rest of 2026. | — |
If your stub shows FICA EE and FICA MED EE as separate lines, add them together to get your 7.65% total. If it shows a single FICA line, that combined figure is already 7.65% of your taxable wages.
The Social Security Wage Base (the part that changes every year)
| Year | Wage base | Growth |
|---|---|---|
| 2016 | $118,500 |
|
| 2018 | $128,400 |
|
| 2020 | $137,700 |
|
| 2022 | $147,000 |
|
| 2024 | $168,600 |
|
| 2025 | $176,100 |
|
| 2026 | $184,500 |
|
Source: SSA Contribution and Benefit Base table (ssa.gov/oact/cola/cbb.html). The Medicare portion has no wage base — it applies to all earnings.
Medicare Has No Cap — And High Earners Pay A Little More
| Filing status | 0.9% extra Medicare tax applies above |
|---|---|
| Single / Head of household | $200,000 |
| Married filing jointly | $250,000 |
| Married filing separately | $125,000 |
Source: IRS Topic No. 560, Additional Medicare Tax.
Self-Employed? You Pay Both Halves
How FICA Connects To Your Social Security Disability Benefits (SSDI)
How Many Work Credits You Need For SSDI, By Age
Most people need 40 credits (about 10 years of work) for retirement benefits. For SSDI, the requirement scales with your age when your disability begins — younger workers qualify with fewer credits:
| Age when disability begins | Credits generally needed |
|---|---|
| Before 24 | 6 credits (in the prior 3 years) |
| 24 to 31 | Credits for about half the time between age 21 and disability onset |
| 31 to 42 | 20 credits |
| 44 | 22 credits |
| 46 | 24 credits |
| 50 | 28 credits |
| 56 | 34 credits |
| 60 | 38 credits |
Generally you also need to have worked 5 of the last 10 years (fewer for younger workers) — the “recent work” test explained next. Source: SSA, How You Earn Credits; SSA, Disability Benefits.
Date Last Insured: What Happens If You Stop Paying FICA
SSDI has a recent-work test as well as a total-credits test. Workers 31 and older generally need 20 credits earned in the 10 years before the disability began (5 of the last 10 years). Because coverage is tied to recent FICA payments, it expires: your date last insured (DLI) is roughly five years after you stop working and paying FICA. If your disability is found to have begun after your DLI, SSA denies the claim as a technical denial — no matter how severe your condition — unless you can prove you were already disabled before that date. This is why people who left work years ago for health reasons should file as soon as possible, and why medical evidence dated before the DLI matters so much.
The Self-Employed Trap: Underreporting Income Costs You SSDI
Self-employed workers earn credits only on the net earnings they report and pay SECA tax on. Net earnings under $400 in a year generate no FICA at all — and no credits. Reporting less income than you actually earned lowers your tax bill today, but it can leave you uninsured for SSDI when you need it, and it permanently lowers the earnings record that determines your monthly SSDI benefit amount. Paying cash workers off the books has the same effect on them. If you work for yourself, every honest Schedule SE you file is an SSDI premium.
How Your FICA Record Sets Your Disability Check
SSDI is not needs-based — your benefit is calculated from the wages you paid FICA on, averaged and indexed over your working years into your primary insurance amount (PIA). In 2026 the average disabled worker receives about $1,630 a month and the maximum is $4,152. See exactly how the formula works, with examples by salary, in How Much Does Social Security Disability Pay in 2026? If you have not paid enough FICA to qualify, you may still be eligible for SSI, which is based on financial need rather than work credits.
FICA Tax FAQs: Your Questions Answered
What is FICA on my paycheck?
FICA on your paycheck is your 7.65% share of Social Security (6.2%) and Medicare (1.45%) taxes, withheld from every check. It may appear as one “FICA” line or be split into “FICA EE,” “OASDI,” and “FICA MED” lines.
Is FICA the same as Social Security tax?
Not exactly. Social Security tax (OASDI, 6.2%) is the largest part of FICA, but FICA also includes the 1.45% Medicare tax. So all Social Security tax is FICA, but FICA is more than Social Security tax.
What is the FICA rate for 2026?
The 2026 FICA rate is 7.65% for employees and 7.65% for employers, 15.3% combined; self-employed workers pay the full 15.3%. The Social Security portion applies to the first $184,500 of wages; Medicare has no cap.
Do I get my FICA tax back?
No. Unlike income tax, FICA is not refunded at tax time. Instead it buys work credits that entitle you to Social Security retirement, survivor, and disability (SSDI) benefits and Medicare later. Overwithholding from multiple employers can be refunded.
Is it mandatory to pay FICA?
Yes. FICA is required by federal law for nearly all wage earners; employers must withhold it and self-employed workers pay it as SECA tax. Narrow exemptions exist for certain students, some religious groups, and nonresident aliens on specific visas.
Why is FICA taking my money?
FICA is taken from every paycheck because you are paying premiums into Social Security and Medicare. That money funds current retirees and disabled workers today, and it earns you the work credits and earnings record that determine your own benefits later.
What is the difference between FICA and federal income tax?
FICA is a flat 7.65% payroll tax earmarked for Social Security and Medicare. Federal income tax is separate, uses graduated brackets, funds general government operations, and can be refunded if you overpay. FICA cannot.
What is the maximum Social Security tax in 2026?
$11,439 for an employee (6.2% of the $184,500 wage base) and $22,878 for a self-employed person (12.4%). The Medicare portion of FICA has no maximum because it applies to all earnings.
Do self-employed people pay FICA?
Yes, as self-employment (SECA) tax — the full 15.3% (12.4% Social Security up to $184,500 plus 2.9% Medicare), since there is no employer to pay the matching half. Half of it is deductible for income tax purposes.
Does FICA go to disability?
Yes. The Social Security portion of FICA funds the Disability Insurance trust fund, and the credits you earn by paying it are what make you eligible for SSDI. If you are disabled and have paid FICA recently enough, you are insured.
Figures reflect 2026 data: the 2026 Social Security wage base ($184,500, up from $176,100 in 2025); FICA rates of 6.2% (Social Security) and 1.45% (Medicare); the maximum 2026 employee Social Security tax ($11,439); and the 2026 work-credit amount ($1,890). Sources: IRS Topic No. 751 and No. 560; SSA 2026 COLA Fact Sheet; SSA Contribution and Benefit Base (ssa.gov/oact/cola/cbb.html); SSA Quarter of Coverage (ssa.gov/oact/cola/QC.html); SSA, How You Earn Credits; SSA, Disability Benefits (insured status).
This article has been reviewed and approved by Quikaid staff, many of whom previously worked at the Social Security Administration in leadership positions within the disability adjudication process.
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