FICA Explained: Social Security & Medicare in 2026
What FICA actually pays for, why Social Security withholding stops mid-year for high earners, and how the Additional Medicare Tax works.
The two halves of FICA
FICA — the Federal Insurance Contributions Act — covers two federal programs. Social Security is 6.2% on your first $184,500 of wages in 2026, funding retirement, disability, and survivor benefits. Medicare is 1.45% on every dollar of wages, funding Medicare Part A hospital coverage.
Employers match both taxes dollar-for-dollar. Self-employed workers pay the full 15.3% themselves but deduct half as a business expense.
The 2026 Social Security wage base
The Social Security Administration adjusts the wage base each year for national wage growth. In 2026 it's $184,500. Above that, no more Social Security is withheld — but Medicare continues.
This is why senior professionals see a paycheck jump in Q4: their 6.2% Social Security withholding ends for the year once they cross the wage base.
The 0.9% Additional Medicare Tax
On wages above $200,000 in a calendar year (regardless of filing status for withholding), an additional 0.9% Medicare surtax applies. Employers begin withholding it automatically once you cross $200,000 with them, even if your household threshold is different.
The tax reconciles at year-end: married-filing-jointly households don't owe the surtax until combined wages exceed $250,000; single filers at $200,000.
How our calculator handles FICA
The paycheck calculator applies Social Security only up to the $184,500 wage base per employee, Medicare on all wages, and the 0.9% surtax proportionally to any wages projected above $200,000. That gives you a realistic annualized take-home number.