Updated June 17, 2026
FICA stands for the Federal Insurance Contributions Act and requires employees to contribute 6.2% of their wages to Social Security and 1.45% to Medicare, for a combined 7.65% withheld from each paycheck. Employers match that 7.65%, so the total contribution to those programs is 15.3% of wages. Self-employed people pay the full 15.3% themselves as self-employment tax.
Social Security: the 6.2% piece
Social Security tax funds retirement, disability, and survivor benefits. In 2025 the employee rate is 6.2% of wages, but only up to the Social Security wage base (which adjusts annually; it was $176,100 in 2025). Once your year-to-date earnings exceed that base, the 6.2% deduction stops for the rest of the calendar year. Your employer also pays 6.2%, but you do not see that on your stub since it comes from the employer's side.
The Social Security wage base rises most years to keep pace with average wage growth: it was $76,200 in 2000 and $106,800 in 2010. Higher earners subject to the cap pay Social Security tax on a larger portion of income each year as the base increases. Check SSA.gov each January for the updated figure.
Medicare: the 1.45% piece
Medicare tax funds the federal health insurance program for people 65 and older and certain younger people with disabilities. The employee rate is 1.45% on all wages, with no wage base cap. Workers who earn more than $200,000 in a year (single filers) face an additional 0.9% Medicare surtax on the excess, bringing their total Medicare rate to 2.35% on higher wages. Employers do not match the extra 0.9%.
Unlike Social Security, Medicare has no wage cap, so every dollar of wages is subject to at least 1.45%. For high earners, the uncapped rate and the 0.9% surtax make Medicare the larger deduction in the second half of the year, once the Social Security cap has been reached and that 6.2% stops.
FICA rates at a glance (2025)
| Tax | Employee rate | Employer rate | Wage cap |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $176,100 (2025 estimate; verify at SSA.gov) |
| Medicare | 1.45% | 1.45% | No cap |
| Additional Medicare | 0.9% (over $200k, single) | None | No cap |
Tax rates and limits vary by year and state. Check SSA.gov and IRS.gov for current figures. This is not tax advice.
Worked example: FICA on a biweekly paycheck
An employee earns $2,500 biweekly ($65,000 per year). Here is the FICA calculation for a single paycheck early in the year before any wage-base milestones are reached:
| Component | Rate | Amount on $2,500 |
|---|---|---|
| Social Security | 6.2% | $155.00 |
| Medicare | 1.45% | $36.25 |
| Total FICA withheld | 7.65% | $191.25 |
| Employer Social Security match | 6.2% | $155.00 (not deducted from your pay) |
| Employer Medicare match | 1.45% | $36.25 (not deducted from your pay) |
Total FICA contribution to the programs from this single paycheck: $382.50, split equally between employee and employer.
What benefits do FICA taxes fund?
Social Security and Medicare are not just payroll taxes; they are earned-benefit programs. The number of quarters you work and pay into Social Security determines eligibility for retirement benefits, disability insurance (SSDI), and survivor benefits for your dependents. You generally need 40 work credits (roughly 10 years of covered employment) to qualify for Social Security retirement benefits. Medicare Part A hospital coverage is generally premium-free if you or your spouse paid Medicare taxes for at least 10 years.
Do you get FICA money back?
Not directly at tax time. FICA is not refundable through your income tax return in the way that over-withheld federal income tax is. However, you earn credits toward Social Security retirement and disability benefits, and Medicare coverage at 65. If you have two jobs and both withhold Social Security, you may over-pay the 6.2% if combined wages exceed the wage base. In that case, you can claim a credit for the excess on your federal tax return (reported on Schedule 3).
Can anyone opt out of FICA?
Very few workers can opt out. Certain nonresident aliens on specific visa types, some student workers at their own educational institution, and members of qualifying religious groups that object to insurance programs may be exempt. Some state and local government employees covered by an alternative public pension system may be exempt from Social Security but not Medicare. For most employees, FICA is mandatory and cannot be waived. See all paycheck deductions for context on the other lines on your stub.
FICA and self-employment
Self-employed workers pay self-employment tax of 15.3% (the combined employee and employer shares) on net self-employment income. However, they can deduct half of that self-employment tax when calculating their adjusted gross income, which partially offsets the burden of paying both sides. Self-employed workers also pay a Medicare surtax of 0.9% on net earnings above $200,000 (single) or $250,000 (married filing jointly), the same thresholds that apply to employees.