FICA on your paycheck is the federal payroll tax that funds Social Security and Medicare. It takes 7.65% of your gross wages — 6.2% for Social Security and 1.45% for Medicare — and your employer pays a matching 7.65% on top of what you contribute.1Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates The tax is authorized under the Federal Insurance Contributions Act, codified at 26 U.S.C. Chapter 21, and it applies to almost every employee in the country.
Where the Money Actually Goes
Your pay stub may show a single “FICA” line or break it into two. Either way, the money goes to two separate federal programs.
The 6.2% Social Security piece funds Old-Age, Survivors, and Disability Insurance. That program pays monthly benefits to retirees, to the surviving spouses and children of deceased workers, and to people who can no longer work because of a long-term disability.
The 1.45% Medicare piece funds Hospital Insurance, which pays for Medicare Part A. This covers inpatient hospital care, skilled nursing facilities, and hospice for people 65 and older, along with certain younger people with disabilities. You’re not buying coverage for yourself today; you’re funding coverage you’ll draw when you reach Medicare age.
How FICA Is Calculated on Each Paycheck
The rates are fixed by statute and have held steady for decades. On a $1,000 paycheck, $62 goes to Social Security and $14.50 goes to Medicare, for a total FICA withholding of $76.50.
One detail trips people up. FICA is calculated on your gross wages before federal and state income tax withholding, but after certain pre-tax deductions made through a Section 125 cafeteria plan. If you pay for employer-sponsored health insurance, a flexible spending account, or a health savings account through pre-tax payroll deductions, those amounts reduce your FICA-taxable wages.2Internal Revenue Service. FAQs for Government Entities Regarding Cafeteria Plans That’s a genuine tax savings most workers don’t realize they’re getting.
When Social Security Withholding Stops
Medicare tax applies to every dollar you earn, no matter how high your income climbs. Social Security tax does not. Each year the Social Security Administration sets a wage base limit, and once your cumulative earnings for the year hit that cap, the 6.2% withholding stops. For 2026, the wage base is $184,500. The most you can pay in Social Security tax as an employee in 2026 is $11,439.3Social Security Administration. Contribution and Benefit Base
If you have a single employer, your payroll system handles this automatically. Once your year-to-date wages cross $184,500, you’ll notice a bump in your take-home pay because the 6.2% deduction disappears for the rest of the year. The 1.45% Medicare deduction keeps going.
The Extra 0.9% for Higher Earners
On top of the standard 1.45% Medicare withholding, an extra 0.9% kicks in once your earned income passes a threshold that depends on how you file your taxes.4Office of the Law Revision Counsel. 26 U.S. Code 3101 – Rate of Tax This Additional Medicare Tax was created by the Affordable Care Act and has no employer match. It comes entirely out of your wages.
The thresholds are:5Internal Revenue Service. Questions and Answers for the Additional Medicare Tax
- Single or head of household: $200,000
- Married filing jointly: $250,000
- Married filing separately: $125,000
Your employer is required to start withholding the extra 0.9% once your wages pass $200,000 in a calendar year, regardless of your filing status or whether your spouse also works. That means if you’re married filing jointly and both you and your spouse earn $180,000, neither employer will withhold the Additional Medicare Tax, even though your combined income of $360,000 exceeds the $250,000 joint threshold. You’d owe the difference when you file your return, which is where underpayment penalties catch people off guard. If you’re in that situation, consider making estimated tax payments during the year.
Who Doesn’t Pay FICA
Most workers pay FICA on every paycheck, but a few specific groups are exempt.
Students working at their school. If you’re enrolled at least half-time and work for the same college or university where you’re a student, your wages are generally exempt from FICA. The job has to be incidental to your education. The exception does not apply if you qualify as a “professional employee,” meaning you’re eligible for benefits like vacation time, sick leave, or the school’s retirement plan.6Internal Revenue Service. Student FICA Exception
Certain nonresident aliens. Foreign students and scholars on F-1, J-1, or M-1 visas who have been in the U.S. for fewer than five calendar years are generally exempt from FICA on wages earned in connection with their visa status. Once they’ve been present long enough to become resident aliens for tax purposes, the exemption ends.7Internal Revenue Service. Foreign Student Liability for Social Security and Medicare Taxes
Members of certain religious groups. Members of recognized religious groups that have continuously existed since 1950 and are opposed to accepting insurance benefits, including Social Security and Medicare, can apply for an exemption using IRS Form 4029. Approval means you’ll never pay FICA, but you also permanently waive any right to Social Security or Medicare benefits. The Amish and some Mennonite communities are the groups most commonly associated with this exemption.
Getting Back FICA That Was Over-Withheld
If you work for two or more employers during the year and your combined wages exceed the Social Security wage base of $184,500 in 2026, each employer withholds 6.2% independently with no knowledge of what the other is taking. You’ll end up overpaying Social Security tax. You don’t need to do anything special. The excess shows up as a credit on Schedule 3, Line 11 of your Form 1040 and either increases your refund or reduces what you owe.3Social Security Administration. Contribution and Benefit Base
If a single employer withholds too much because of a payroll error, the fix is different. First ask your employer to correct it. If the employer won’t adjust, you can file Form 843 with the IRS to claim a refund directly. You’ll need to attach your W-2 and, if possible, a statement from the employer about any amounts already reimbursed.8Internal Revenue Service. Instructions for Form 843 The standard deadline is three years from the date the return was filed or two years from the date the tax was paid, whichever is later.
Other Deductions That Aren’t FICA
Depending on where you live, you may see additional payroll deductions on your pay stub beyond FICA. About a dozen states and the District of Columbia impose their own mandatory payroll taxes for disability insurance, paid family leave, or both. Rates generally range from about 0.2% to 1.3% of wages. Some programs split the cost between employer and employee; others fall entirely on the worker. These are not part of FICA and do not fund Social Security or Medicare, but they show up right next to FICA on your stub, which causes real confusion. If you see a deduction you don’t recognize, check whether your state runs one of these programs before assuming your employer made a mistake.