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FICA

Tax

Federal Insurance Contributions Act Tax

The US payroll tax funding Social Security and Medicare, split evenly between employee and employer at 7.65% each, for a combined 15.3%.

Written by · Reviewed by the thecalcu.com team · Last updated August 8, 2026

What is FICA?

FICA is the payroll tax that funds Social Security and Medicare in the US. It's split evenly between you and your employer, each paying 7.65% of your wages, for a combined 15.3% going toward these two federal programs.

The Social Security portion (6.2% each side) only applies up to an annual wage base limit, after which it stops for the rest of the year. The Medicare portion (1.45% each side) has no cap and applies to every dollar you earn. FICA withholding shows up on your W-2 in Boxes 4 and 6.

Formula

FICA Withheld (Employee) = (Wages up to SS Wage Base × 6.2%) + (All Wages × 1.45%)

Self-employed individuals pay both halves through self-employment tax, calculated at 15.3% on net self-employment income.

Worked Example

An employee earning $90,000 in a year, well under the Social Security wage base:

  • Social Security: $90,000 × 6.2% = $5,580
  • Medicare: $90,000 × 1.45% = $1,305
  • Total FICA withheld from the employee: $6,885

Their employer separately pays another $6,885 in matching FICA, a cost that doesn't reduce the employee's paycheck but does add to what it costs the employer to hire them.

Key Things to Know

  • The Social Security wage base rises almost every year with inflation. Once your year-to-date wages cross that threshold, the 6.2% Social Security withholding stops for the rest of the year, though Medicare withholding continues.
  • High earners pay an extra 0.9% Medicare surtax. This applies above income thresholds set by filing status, and it's not matched by the employer.
  • Self-employed workers pay double through self-employment tax. With no employer to split the cost, freelancers and business owners cover the full 15.3% themselves, though half is deductible against income tax.
  • FICA funds specific programs, not general revenue. Unlike income tax, FICA contributions are earmarked for Social Security and Medicare trust funds.
  • Multiple employers in one year can lead to over-withholding. If your combined Social Security wages across jobs exceed the annual cap, you can claim the excess back when filing.

Related Calculators

Payroll Tax Calculator →Calculate how much federal income tax, Social Security, and Medicare is withheld from each paycheck. See your net take-home pay by filing status in seconds.
Self-Employment Tax Calculator →Calculate Social Security and Medicare self-employment tax for freelancers, 1099 contractors, and sole proprietors, for tax year 2024 instantly.

Related Terms

W-2Wage and Tax Statement

Frequently Asked Questions

Is FICA the same as federal income tax?

No, they're separate. FICA specifically funds Social Security and Medicare, while federal income tax funds general government spending. Both get withheld from your paycheck, but they show up as separate line items on your [W-2](/glossary/w-2/).

Is there a cap on FICA tax?

The Social Security portion (6.2%) applies only up to an annual wage base limit that adjusts each year, after which it stops. The Medicare portion (1.45%) has no cap and applies to all wages, with an extra 0.9% kicking in above certain high-income thresholds.

Do self-employed people pay FICA?

They pay the equivalent through self-employment tax, covering both the employee and employer portions since there's no separate employer to split it with. That's why self-employment tax runs at 15.3% instead of the 7.65% an employee sees withheld.

Why does my employer also pay FICA on my wages?

FICA is split evenly, you pay 7.65% and your employer matches it with another 7.65%, for a combined 15.3% funding Social Security and Medicare. The employer portion doesn't come out of your paycheck, but it is a real cost of employing you.

Can I get FICA tax back if too much was withheld?

If you worked multiple jobs and combined Social Security withholding exceeded the annual cap across employers, you can claim the excess back as a credit on your tax return. Medicare tax has no such cap or refund mechanism.