Financial glossary
FICA Tax
In plain English
US payroll taxes funding Social Security and Medicare, generally withheld from employee wages and also paid by employers.
FICA tax
FICA refers to US payroll taxes funding Social Security and Medicare. For employees in 2026, Social Security withholding is generally 6.2% of covered wages up to the annual wage base, while Medicare withholding is generally 1.45% without that wage cap.
An additional 0.9% Medicare tax applies above statutory income thresholds. Employers also pay their own Social Security and Medicare shares; those employer amounts are not normally subtracted from the employee’s gross paycheck.
The 2026 take-home pay calculator models employee FICA using the official $184,500 Social Security wage base. Special employment, self-employment, railroad, and noncovered government situations require different treatment.
Related calculators
- 2026 Take-Home Pay CalculatorEstimate 2026 take-home pay using federal tax brackets, standard deductions, Social Security, Medicare, pre-tax deductions, and a state-rate input.
- Hourly to Salary & Salary to Hourly CalculatorConvert hourly pay to annual salary or salary back to an hourly rate, with adjustable hours per week and weeks per year. Instant, accurate, free.