AfterTaxLab AfterTaxLab
Calculator
Glossary · Payroll tax · tax year 2026

FICA

FICA stands for the Federal Insurance Contributions Act. It is a mandatory federal payroll tax in the United States that funds the Social Security and Medicare programs. This tax is withheld directly from an employee's earnings by the employer. FICA is calculated based on an individual's gross pay, meaning it is assessed before other common deductions are applied.

Definition

FICA, in plain terms

FICA is distinct from federal income tax and state income tax, which serve different purposes and follow different calculation rules. Because FICA is charged on gross pay, pre-tax retirement contributions do not reduce the amount owed in this model. It is not an investment account or a voluntary savings plan, but rather a compulsory social insurance contribution required by law for most workers.

Formula: FICA = (pay up to the Social Security wage base × Social Security rate) + (all pay × Medicare rate)
Worked example · 2026 rules, single filer

FICA on a real salary

Every figure below is produced by the same engine that runs the AfterTaxLab calculators — nothing here is estimated by hand.

Item2026 figure
Gross salary$100,000
Social Security part$6,200
Medicare part$1,450
FICA total$7,650
FICA as a share of gross7.65%

For a professional earning a $100,000 salary, the total FICA obligation is $7,650. This figure is comprised of two distinct components: a contribution toward Social Security and a separate portion for Medicare. Because this tax is applied to the total gross salary, the calculation remains straightforward. The resulting total represents a flat share of the employee's total gross compensation before other taxes or deductions are considered.

Where you meet this term

Using fica on AfterTaxLab

The FICA total appears prominently on the AfterTaxLab take-home pay calculator results page. Users should look at the federal tax breakdown section to identify how much of their paycheck is allocated to these social insurance programs. This ensures transparency regarding how gross earnings are partitioned between mandatory federal contributions and final take-home pay.

Take-home pay calculator Salary ladder — every level All 51 states ranked Federal brackets 2026 explained

FICA: common questions

Does contributing to a 401(k) reduce my FICA tax?

No. FICA is charged on gross pay, so pre-tax retirement contributions like a 401(k) do not reduce the amount of FICA tax withheld. The calculation is based on your total gross salary before these specific retirement deductions are taken out of your paycheck.

What are the two parts of the FICA tax?

The FICA tax is composed of a Social Security component and a Medicare component. For a $100,000 salary, these portions are $6,200 and $1,450 respectively. Both are mandatory contributions collected by the federal government to support these specific public programs.

Why is my FICA tax different from my income tax?

FICA taxes are specifically earmarked for Social Security and Medicare, whereas federal income tax funds general government operations. While income tax brackets can change based on your total earnings and filing status, FICA is calculated as a fixed percentage of your gross pay.

Figures calculated with the AfterTaxLab 2026 engine: federal brackets and standard deduction ($16,100 single), Social Security wage base $184,500, published 2026 state rates. Estimates for planning only — not tax advice. Last verified 21 Sep 2026 · methodology.

Related terms

Marginal tax rate Effective tax rate Standard deduction

Go deeper

Tax guides & explainers Salary ladder — every level All 51 states ranked Full glossary A–Z

Where FICA shows up in real pay

On a payslip FICA appears as two lines: Social Security at 6.2% up to the annual wage base, and Medicare at 1.45% with no cap. Once your year-to-date earnings pass the Social Security wage base, the 6.2% line stops for the rest of the year, so your take-home pay rises noticeably in the final months. That bump surprises people who budget on an average monthly figure.

Self-employed workers pay both halves — the employee and employer share — through self-employment tax, which is why the effective rate looks double. Half of that tax is deductible against income, but the cash has still left the account. When comparing a salaried offer with freelance income, compare the net figures after self-employment tax, not the headline rates.

Sources & method

Figures on this page are planning estimates built from published IRS tables and state agency rates; they are not tax advice. How we build and check these estimates · Edited by: · Last updated: 2026-11-09

Where FICA shows up in real pay

On a payslip FICA appears as two lines: Social Security at 6.2% up to the annual wage base, and Medicare at 1.45% with no cap. Once your year-to-date earnings pass the Social Security wage base, the 6.2% line stops for the rest of the year, so your take-home pay rises noticeably in the final months. That bump surprises people who budget on an average monthly figure.

Self-employed workers pay both halves — the employee and employer share — through self-employment tax, which is why the effective rate looks double. Half of that tax is deductible against income, but the cash has still left the account. When comparing a salaried offer with freelance income, compare the net figures after self-employment tax, not the headline rates.