Guide

Federal tax basics · 9 min read

FICA, Social Security, and Medicare

Payroll tax is a separate calculation from federal income tax, with its own wage base, rates, withholding rules, and employer share.

By AfteraxLast reviewed July 24, 2026US tax years 2025 and 2026

The employee FICA components

Employee FICA commonly means Social Security and Medicare withheld from wages. For 2025, Social Security is 6.2% up to $176,100 of wages for each worker. Regular Medicare is 1.45% of covered wages.

The 2026 Social Security wage base rises to $184,500. A wage base is not an income-tax deduction and does not cap regular Medicare.

Additional Medicare Tax

Additional Medicare Tax is 0.9% of Medicare wages above $200,000 for single, head of household, and qualifying surviving spouse, $250,000 for married filing jointly, and $125,000 for married filing separately.

Employer withholding begins under a payroll rule that does not perfectly match every joint return. Spouses may need to adjust withholding or estimated payments.

The employer share

Employers generally pay their own 6.2% Social Security and 1.45% Medicare amounts. The employee's Additional Medicare Tax has no matching employer amount.

Employer payroll cost is useful compensation context, but it is not subtracted from employee take home.

Worked example: $210,000 of 2025 W-2 wages

Payroll limitations

Apply this guide with a focused calculator that shows its inputs, assumptions, worked example, and federal limitations.

Frequently asked questions

Does Social Security stop after the wage base?

The 6.2% Social Security component stops on covered wages above the annual base for that worker. Medicare continues.

Do spouses share one Social Security cap?

No. Each spouse's covered wages use that spouse's wage base, even on a joint return.

Primary sources

Afterax uses official IRS material where available and names other authorities when a cross-state comparison is required.

Rules can change, and eligibility depends on facts not captured by a general guide. Confirm the current form instructions before filing or making a material transaction.

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General US federal tax information · State rules are separate · Not tax, legal, or financial advice