Tax Guide

FICA Tax Rate 2026: Social Security and Medicare

Updated June 2026  |  Wage base projected — official SSA figure expected October 2026  |  Tax year 2026

For 2026, the FICA tax rates are unchanged: employees pay 6.2% for Social Security and 1.45% for Medicare. The Social Security wage base is projected at approximately $180,400, up from $176,100 in 2025. Self-employed workers pay the full 15.3% combined rate.

The Social Security wage base projection on this page is an estimate. The SSA announces the official wage base each October. The tax rates (6.2% and 1.45%) are statutory and confirmed for 2026. For your 2025 return, use the confirmed 2025 FICA rates.

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15.3% for freelancers

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FICA Rates 2025

Official confirmed rates

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2026 FICA Rates at a Glance

2026 FICA Tax Rates: Employee, Employer, and Self-Employed

FICA taxes fund Social Security and Medicare. The rates are set by law and do not change year to year. Only the Social Security wage base adjusts annually for inflation.

Social Security Rate
6.2%
On wages up to ~$180,400 (projected)
Medicare Rate
1.45%
On all wages — no cap
Total Employee FICA
7.65%
Employer matches 7.65%
SS Wage Base (Projected)
~$180,400
Official figure due October 2026
Worker TypeSocial SecurityMedicareTotalWage Base Applies?
Employee6.2%1.45%7.65%Yes (SS only)
Employer6.2%1.45%7.65%Yes (SS only)
Self-Employed12.4%2.9%15.3%Yes (SS only)
High earners (>$200K single)6.2%2.35%*8.55%*Yes (SS only)

*Additional 0.9% Medicare surtax applies to wages above $200,000 (single) or $250,000 (married filing jointly). Employers do not match the surtax.

Why does the wage base change but rates stay the same? Congress sets the FICA rates in statute (the Social Security Act and the Internal Revenue Code). Changing them requires legislation. The wage base, however, is adjusted automatically each year based on the national average wage index published by the SSA — no legislation required.

Projected 2026 Wage Base

2026 Social Security Wage Base Projection

The Social Security wage base has increased nearly every year since 1975. For 2026, it is projected at approximately $180,400 based on recent national average wage trends. The SSA will confirm the official figure in October 2026.

YearSS Wage BaseChangeStatus
2022$147,000+$4,200Official
2023$160,200+$13,200Official
2024$168,600+$8,400Official
2025$176,100+$7,500Official
2026~$180,400~+$4,300ProjectedEst.

Worked Example: W-2 Employee Earning $200,000 in 2026

Gross wages$200,000
Social Security tax (6.2% x ~$180,400)~$11,185
Medicare tax (1.45% x $200,000)$2,900
Additional Medicare surtax (0.9% x $0)$0
Total FICA withheld (employee share)~$14,085

The employer matches $14,085. The additional 0.9% Medicare surtax does not apply until wages exceed $200,000. At $200,001 the surtax kicks in on every dollar above that threshold.

Self-Employed Workers

Self-Employment Tax vs FICA in 2026

Freelancers, independent contractors, and sole proprietors do not have an employer to match their FICA contributions. Instead, they pay self-employment (SE) tax at the combined 15.3% rate on 92.35% of net earnings. The 92.35% adjustment approximates the employer-side deduction that W-2 employees receive automatically.

The IRS allows self-employed individuals to deduct half of their SE tax as an above-the-line deduction, reducing adjusted gross income. This deduction applies on Schedule 1 of Form 1040 and does not require itemizing.

SE Tax Example: Freelancer with $85,000 Net Profit in 2026

Net self-employment income$85,000
SE taxable income (x 92.35%)$78,498
Social Security (12.4% x $78,498)$9,734
Medicare (2.9% x $78,498)$2,277
Total SE tax$12,011
Deductible half (Schedule 1)- $6,006

Use our self-employment tax calculator to estimate your exact SE tax based on your net profit.

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FAQ

Frequently Asked Questions

The FICA tax rate for 2026 is 7.65% for employees: 6.2% for Social Security on wages up to the projected wage base of approximately $180,400, and 1.45% for Medicare on all wages. Employers match the same 7.65%. Self-employed individuals pay the full 15.3% combined rate.
The official 2026 Social Security wage base has not been announced. Based on recent wage growth trends, it is projected at approximately $180,400, up from $176,100 in 2025. The SSA typically announces the official figure in October each year.
No. The 1.45% Medicare tax applies to all wages with no ceiling. High earners also pay an additional 0.9% Medicare surtax on wages above $200,000 (single filers) or $250,000 (married filing jointly). Employers do not match the additional 0.9%.
Once your year-to-date wages exceed the wage base (approximately $180,400 for 2026), Social Security withholding stops for the remainder of the year. Your employer is responsible for tracking this. Medicare withholding continues on all wages with no cap. You will notice a larger net paycheck in months after you hit the cap.
W-2 employees cannot deduct their share of FICA taxes. Self-employed individuals can deduct half of their self-employment tax (the equivalent of the employer share) as an above-the-line adjustment to income on Form 1040 Schedule 1. This reduces AGI but does not reduce SE tax itself.

Disclaimer: The 2026 Social Security wage base on this page is a projection based on historical wage growth trends and is not an official SSA figure. FICA rates (6.2% and 1.45%) are confirmed by statute. This page is for educational planning purposes only and is not tax, legal, or financial advice. Consult a qualified tax professional for advice specific to your situation.