What Is FICA on My Paycheck?

Every paycheck has a line labeled FICA — or it might show up as two separate lines for Social Security and Medicare. Either way, it's money leaving your pocket. Here's exactly what FICA is, how much you pay, and what (if anything) you can do about it.

FICA Stands for Federal Insurance Contributions Act

FICA is a federal payroll tax that funds two programs: Social Security and Medicare (see our paycheck glossary for definitions of these and other pay stub terms). Congress created it in 1935 and it applies to virtually every W-2 worker in the country. Unlike federal income tax, which varies based on your filing status and deductions, FICA is a flat percentage of your gross wages. There are no brackets, no standard deduction, and (for most workers) no way to avoid it.

The Two Parts of FICA

Social Security Tax: 6.2%

Social Security tax is 6.2% of your gross wages, up to an annual wage base cap. In 2026, the cap is $184,500. That means you pay 6.2% on every dollar you earn until your year-to-date earnings reach $184,500. After that, Social Security tax stops for the rest of the year. If you earn less than $184,500 annually, you'll pay Social Security tax on every paycheck all year long.

Medicare Tax: 1.45%

Medicare tax is 1.45% of all your gross wages. There is no cap. Whether you earn $30,000 or $300,000, Medicare takes 1.45% of every dollar. On top of that, there's an Additional Medicare tax of 0.9% on wages above $200,000. This additional tax is employee-only — your employer doesn't match it. For withholding purposes, the $200,000 threshold applies regardless of your filing status.

Combined FICA for Most Workers: 7.65%

If you earn under $184,500 per year, your combined FICA rate is 7.65% on every paycheck (6.2% + 1.45%). That's the number to remember. For every $1,000 in gross pay, $76.50 goes to FICA before you see a dime.

Your Employer Pays a Matching Amount

Here's something that doesn't appear on your pay stub: your employer also pays 6.2% Social Security and 1.45% Medicare on your wages. That's an additional 7.65% that comes out of your employer's pocket, not yours. The total FICA contribution on your wages is actually 15.3% — you just only see half of it on your paycheck.

When the Wage Base Cap Matters

If you earn more than $184,500 per year, something interesting happens partway through the year. Once your year-to-date wages hit the cap, Social Security tax stops being deducted. Your paychecks get bigger because that 6.2% is no longer coming out. Then on January 1, the cap resets and the deductions start again. This is one of the most common reasons people notice their paycheck changing unexpectedly.

If you work multiple jobs, each employer withholds Social Security independently. You could end up overpaying if your combined wages exceed the cap. When that happens, you claim the excess as a credit on your tax return.

Additional Medicare Tax for High Earners

Most hourly workers won't hit the $200,000 threshold for Additional Medicare tax. But it's possible if you work significant overtime, hold multiple jobs, or have a high hourly rate. The 0.9% kicks in on every dollar above $200,000 in wages for the calendar year. Your employer starts withholding it once your year-to-date pay crosses that line — and unlike Social Security, this extra tax never stops.

Pre-Tax Deductions and FICA: What Actually Reduces It

Not all pre-tax deductions reduce your FICA taxable wages. This trips up a lot of people. Here's how it works:

• HSA, FSA, and Section 125 cafeteria plans — these reduce your FICA taxable wages. Every dollar you put into an HSA or FSA avoids the 7.65% FICA tax in addition to reducing your federal and state income tax. This is why employer-sponsored benefits through a cafeteria plan are so tax-efficient.
• Traditional 401(k) — this does not reduce FICA. Your 401(k) contributions lower your federal and state taxable income, but you still pay the full 7.65% FICA on every dollar you contribute. If you put $200 per paycheck into a traditional 401(k), you still pay $15.30 in FICA on that $200.
• Roth 401(k) — same as traditional for FICA purposes. You pay FICA on Roth contributions. And since Roth is after-tax, you also pay income tax on them. The benefit comes later — Roth withdrawals in retirement are tax-free.

Worked Example: FICA on a $2,000 Biweekly Paycheck

Let's say you earn $2,000 gross per biweekly pay period. Here's what FICA takes:

• Social Security: $2,000 × 6.2% = $124.00
• Medicare: $2,000 × 1.45% = $29.00
• Total FICA: $153.00

That's $153 out of every paycheck going to Social Security and Medicare. Over 26 biweekly pay periods, that adds up to $3,978 per year in FICA alone — before federal income tax, state tax, or any other deductions.

Now suppose you also contribute $100 per paycheck to an HSA. Your FICA taxable wages drop to $1,900, and your FICA becomes $145.35. That HSA contribution saved you $7.65 in FICA per paycheck — on top of the income tax savings. Over a year, that's nearly $200 in FICA savings alone.

How TakeHome IQ Tracks FICA

The app breaks FICA into separate line items: Social Security, Medicare, and Additional Medicare (if applicable). You can see exactly how much comes out each pay period, with year-to-date tracking against the $184,500 wage base cap. When you're approaching the cap, the app shows when Social Security tax will stop and how your take-home pay will change. Use the take-home pay calculator to see your full paycheck breakdown, or check our guide to reading your pay stub to match the app's numbers to your actual stub.

See exactly how much FICA comes out of your next paycheck — download TakeHome IQ and get your full breakdown in seconds.