Tax

What Is FICA?

Federal Insurance Contributions Act tax: 7.65% deducted from paychecks for Social Security and Medicare.

Definition

FICA is the US payroll tax funding Social Security (6.2%) and Medicare (1.45%), totaling 7.65% deducted from employee paychecks. Employers match this amount. Self-employed pay both halves (15.3%) via SECA. Social Security tax applies up to a wage base ($168,600 in 2026); Medicare applies to all earnings, with an additional 0.9% surtax on income above $200,000 single / $250,000 married. FICA is separate from federal and state income tax.

Example

On a $5,000 paycheck: $310 Social Security + $72.50 Medicare = $382.50 FICA deducted.

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