FICA stops coming out of your paycheck in two situations, and only two. The Social Security portion stops once your year-to-date wages cross the annual wage base — $184,500 in 2026 — and everything stops when you stop earning wages. Medicare, on the other hand, never stops: it applies to every dollar of earned income no matter your age, income level, or how many jobs you hold.1Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates
When Social Security Withholding Stops for the Year
The Social Security portion of FICA is 6.2% of your wages, matched by another 6.2% from your employer.1Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates That 6.2% only applies up to a capped amount of earnings each year, called the contribution and benefit base. For 2026, the cap is $184,500.2SSA. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet
Once your cumulative gross pay for the year passes $184,500, your employer stops withholding the 6.2% and stops paying its matching share too. If you earn $250,000 in salary, only the first $184,500 is subject to Social Security tax. The remaining $65,500 is free of that particular withholding, which shows up as a noticeable bump in take-home pay toward year-end.
The cap resets every January 1. On your first paycheck of the new year, the 6.2% applies again from the first dollar. The Social Security Administration adjusts the limit annually based on national average wages, so it generally rises year to year.2SSA. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet
Bonuses and commissions count toward the wage base right alongside your regular salary.3Internal Revenue Service. Publication 15 (2026), (Circular E), Employer’s Tax Guide If your salary alone puts you past the cap by November, a December bonus will not have any Social Security tax withheld from it.
Medicare Withholding Never Stops
The Medicare portion of FICA has no ceiling. You and your employer each pay 1.45% on all wages, with no upper limit.4Office of the Law Revision Counsel. 26 USC 3101 – Rate of Tax Whether you make $40,000 or $4,000,000, every dollar is taxed at that rate. There is no point in the year when Medicare withholding pauses or phases out.
Higher earners actually pay more. An extra 0.9% Additional Medicare Tax kicks in once your wages cross a threshold tied to your filing status:5Internal Revenue Service. Topic No. 560, Additional Medicare Tax
- Single or head of household: $200,000
- Married filing jointly: $250,000
- Married filing separately: $125,000
Your employer starts withholding the extra 0.9% once your wages with that employer exceed $200,000 in a calendar year, regardless of your filing status.6Internal Revenue Service. Questions and Answers for the Additional Medicare Tax There is no employer match on this piece; you pay it alone.1Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates Married couples where each spouse earns under $200,000 but together they clear $250,000 often owe some Additional Medicare Tax at filing time; you square it up on Form 8959 with your annual return.
Does FICA Stop When You Reach Retirement Age?
No. The tax code does not tie FICA to age. Withholding is triggered by earned wages, not by how old you are.7Office of the Law Revision Counsel. 26 USC 3121 – Definitions If you work part-time at 72, your employer withholds the same 6.2% for Social Security and 1.45% for Medicare that it would for a 25-year-old.
What ends FICA is the end of wages. These common retirement income sources are not wages and are not subject to FICA:7Office of the Law Revision Counsel. 26 USC 3121 – Definitions
- Pension payments from employer plans
- 401(k) and IRA withdrawals
- Social Security benefit checks
- Investment income — dividends, interest, and capital gains
These may still be subject to regular income tax, but they fall outside the definition of wages that triggers FICA. Once you fully stop working, FICA stops. Not a day sooner.
What Happens If Two Employers Both Withhold Past the Cap
If you hold two or more jobs in the same year and your combined wages exceed $184,500, each employer withholds Social Security tax on its own payroll without knowing what the other is doing. You can end up paying more than the annual maximum.8Internal Revenue Service. Topic No. 608, Excess Social Security and RRTA Tax Withheld
The excess is recoverable. You claim it as a credit against your income tax on your annual return, and the Form 1040 instructions walk through the calculation.8Internal Revenue Service. Topic No. 608, Excess Social Security and RRTA Tax Withheld If a single employer withheld too much, that employer, not you, has to correct the error and issue the refund.
Narrow Exemptions from FICA
A few categories of workers are partially or fully exempt, but the categories are narrow and require specific circumstances rather than an opt-out.
- Students working for the school where they are enrolled and regularly attending classes. The exemption covers wages from the school itself and certain affiliated organizations, not outside jobs.9Office of the Law Revision Counsel. 26 USC 3121 – Definitions
- Members of a recognized religious group that has existed continuously since December 31, 1950, and conscientiously opposes accepting insurance benefits. Approval requires filing Form 4029 and permanently waiving all rights to Social Security and Medicare benefits.10Internal Revenue Service. Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits
- Certain state and local government employees covered by a qualifying public retirement system and not brought under a Section 218 agreement between their state and the Social Security Administration.11Social Security Administration. Section 218 Agreements
Outside these situations, FICA applies to virtually all earned income. Your Social Security withholding stops when you hit the $184,500 wage base for the year, and your Medicare withholding stops when the wages themselves stop, whichever comes first.