How FICA splits into Social Security and Medicare
FICA is really two taxes bundled into one line on your pay stub. The first, Social Security, takes 6.2% of your wages up to an annual wage base — earnings above that cap escape the tax entirely. The second, Medicare, takes 1.45% with no cap at all, so it applies to every dollar no matter how high your income runs. Together they make up the 7.65% an employee pays. Your employer is then required to match both pieces dollar for dollar, which is why the combined rate that actually reaches the government is 15.3%.
The FICA rates
Employee share = 6.2% Social Security + 1.45% Medicare = 7.65%
Employer match = 7.65%
Total to government = 15.3%
The 6.2% Social Security portion stops once wages pass the annual wage base, while the 1.45% Medicare portion is uncapped. High earners owe a further 0.9% Additional Medicare tax above the threshold, which the employer withholds but does not match.
Worked example
Take an employee earning $80,000 in gross annual wages. Their pay sits below both the Social Security wage base and the Additional Medicare threshold, so the two standard rates tell the whole story:
| Step | Amount |
|---|---|
| Gross annual wages | $80,000 |
| − Social Security (6.2%)applies to every dollar here, since wages sit below the $184,500 wage base | $4,960 |
| − Medicare (1.45%)no cap — this rate applies to all wages | $1,160 |
| = Employee FICA withheldthe 0.9% Additional Medicare tax doesn't apply below $200,000; your employer pays a matching $6,120 on top | $6,120 |
Computed with this calculator's default settings — open the tool above and you'll see the same numbers, then change any input to match your own wages.
The hidden employer half — and the self-employed
It is tempting to treat the employer's 7.65% as money that never touched you, but economists generally argue otherwise. The employer's share is a cost of employing you, and that cost is largely paid out of wages that would otherwise have landed in your paycheck. On this view a worker arguably bears close to the full 15.3%, even though only half of it shows up as a withholding line. The clearest proof is the self-employed: with no employer to split the bill, they pay the entire 15.3% directly as self-employment tax. If you work for yourself, ourself-employment tax calculatormodels that full burden, including the deductible employer-equivalent half.
FICA is not your income tax
FICA is separate from federal income tax withholding. Income tax is progressive, depends on your filing status and deductions, and funds general government spending; FICA is a flat payroll levy earmarked for Social Security and Medicare. Both come out of the same paycheck, which is why take-home pay can feel so much smaller than gross salary. To see how FICA and income tax combine to shape your net pay, use ourtake-home pay calculator, and to estimate the income-tax piece on its own, see theincome tax calculator.
Frequently asked questions
What is FICA tax?
FICA stands for the Federal Insurance Contributions Act, the law that funds Social Security and Medicare through payroll taxes. It is the line on your paycheck that pays into those two federal programs, and it is collected separately from federal income tax. Both you and your employer contribute, with the money split between a Social Security portion and a Medicare portion.
How much is FICA tax?
As an employee you pay 7.65% of your wages: 6.2% for Social Security and 1.45% for Medicare. Your employer pays a matching 7.65%, so a total of 15.3% reaches the government on your earnings. High earners also owe an extra 0.9% Additional Medicare tax on wages above a threshold, and the employer does not match that part.
What is the Social Security wage base?
The Social Security wage base is an annual cap on the earnings subject to the 6.2% Social Security portion of FICA. Once your wages for the year exceed that limit, no further Social Security tax is withheld on the excess. The Medicare portion has no such cap, so the 1.45% continues to apply to every dollar you earn no matter how high your income climbs.
Does my employer pay FICA too?
Yes. Your employer matches your Social Security and Medicare contributions dollar for dollar, paying another 6.2% and 1.45% on your wages. That is why the combined rate is 15.3% even though only 7.65% comes out of your paycheck. The one exception is the Additional Medicare tax of 0.9% on high earnings, which the employer withholds but does not match.
What is the Additional Medicare tax?
The Additional Medicare tax is an extra 0.9% levied on wages above a set threshold, which is 200,000 dollars for single filers and 250,000 dollars for married couples filing jointly. It applies only to the employee side, so your employer does not pay a matching amount. It is layered on top of the standard 1.45% Medicare rate for the earnings that exceed the threshold.
Sources
- IRS Topic 751 — Social Security and Medicare withholding rates
- SSA — Contribution and benefit base (Social Security wage base)
The official figures this page quotes are drawn from the primary sources above — check them (or a qualified professional) before relying on a result.
Disclaimer: This calculator is foreducation and illustration only. FICA rates, wage bases, and thresholds are set by law and can change from year to year, and your actual withholding depends on your specific wages and filing status. Nothing here is tax, legal, or financial advice.