FICA Tax Explained: Social Security and Medicare
Learn what FICA tax is, how Social Security and Medicare withholding work and why payroll tax appears on your paycheck.
FICA tax is a payroll tax that funds Social Security and Medicare. On a typical U.S. pay stub, it appears separately from federal income-tax withholding.
What does FICA stand for?
FICA means the Federal Insurance Contributions Act. Employees generally have Social Security and Medicare taxes withheld from wages, and employers generally pay corresponding employer payroll taxes.
Social Security withholding
The employee Social Security rate is generally 6.2% of covered wages up to the annual Social Security wage base. The wage base can change from year to year, so year-to-date payroll matters for high earners.
Medicare withholding
The regular employee Medicare rate is generally 1.45% of covered wages. Additional Medicare Tax can apply above statutory income thresholds. Employers handle withholding based on payroll rules, while your final tax situation is reconciled on your tax return.
FICA vs federal income tax
FICA and federal income tax are not the same thing. Federal income-tax withholding depends heavily on W-4 settings and taxable income. Payroll taxes use separate rules and can apply even when federal income-tax withholding is low.
Why FICA matters for take-home pay
Even in states without individual state income tax, such as Texas or Florida, Social Security and Medicare can still reduce a paycheck. That is why “no state income tax” does not mean “no taxes from your paycheck.”
Use the 2026 paycheck calculator to see estimated federal withholding, Social Security, Medicare and supported state withholding together. Our methodology explains the payroll assumptions used in the calculator.