FICA Tax Explained: 2026 Social Security and Medicare Limits

The Federal Insurance Contributions Act (FICA) is a mandatory federal payroll tax deducted from every employee's paycheck to fund Social Security and Medicare programs across the United States.

1. Social Security Tax (6.2%)

Employees pay 6.2% of their gross earnings toward Social Security, and employers match this 6.2%. For the 2026 tax year, the Social Security wage cap is $176,100. Any income earned above this ceiling is exempt from further Social Security deductions for the remainder of the calendar year.

2. Medicare Tax (1.45%)

Medicare taxes fund hospital insurance benefits. Unlike Social Security, there is no wage cap on the standard 1.45% Medicare tax. It applies to 100% of your gross compensation.

3. Additional Medicare Tax (0.9%)

High earners are subject to an Additional Medicare Tax of 0.9% on income exceeding statutory thresholds ($200,000 for Single filers, $250,000 for Joint filers).