Quick Answer
FICA is the payroll tax that funds Social Security and Medicare. As an employee you pay 7.65% of your gross pay — 6.2% for Social Security (on wages up to $184,500 in 2026) and 1.45% for Medicare (no cap). Your employer matches it, so 15.3% goes in total. Self-employed people pay the full 15.3% themselves. High earners add 0.9% Medicare on wages over $200,000.
Look at any pay stub and you'll see it: FICA, quietly taking 7.65% of your gross pay. It's often the second-biggest deduction after income tax, yet most people never learn what it actually is. Here's the whole picture.
What FICA actually is
FICA stands for the Federal Insurance Contributions Act — the law that created the payroll tax funding two programs: Social Security (retirement, disability, and survivor benefits) and Medicare (health coverage for people 65+). It's two taxes bundled into one line.
Social Security
6.2% of wages, up to the $184,500 wage base (2026). Also shown as "OASDI."
Medicare
1.45% of all wages, no cap. +0.9% on wages over $200,000 (single).
You pay half; your employer pays the other half
You pay 7.65% and your employer pays a matching 7.65% — 15.3% total goes to Social Security and Medicare. On a $60,000 salary, that's $4,590 from you and $4,590 from your employer.
Self-employed? You pay both halves
Freelancers and 1099 contractors have no employer to match, so they pay the full 15.3% self-employment tax (on 92.35% of net self-employment income). Half of it is deductible on your federal return.
This is why the same rate as a W-2 employee vs. a 1099 contractor isn't equal pay — the contractor owes an extra ~7.65%. See our gross vs. net pay guide for the full deduction picture.
The 401(k) quirk worth knowing
- Traditional 401(k) contributions reduce income tax but NOT FICA — you still pay 7.65% on money you contribute.
- HSA contributions and many health premiums made through a cafeteria plan do escape FICA.
To see FICA in the context of your full paycheck, use the paycheck calculator. Self-employed? The self-employed tax calculator handles the full 15.3% and the deduction for you.