FICA withholding rates have not changed from 2013; the only difference is that the maximum wage subject to Social Security tax has increased to $184,500 for 2026.
The rates for 2026:
- Employee/Employer rate for Social Security ($184,500 max subject wages): 6.2%
- Employee/Employer rate for Medicare (no max subject wages): 1.45%
- Employee rate for Medicare Surcharge (on wages over $200,000): 0.09%
Advanced Micro Solutions’ Payroll Software auto-calculates these taxes and liabilities for you. Use our software to report it on your quarterly compliance returns and reduce the likelihood of making calculation mistakes.
Understanding the Wage Base Limit
Each year, the wage base limit for Social Security tax is subject to increase. It has increased almost every year since the federal Social Security program was put in place. From 1937 until 1974, and from 1979 until 1981, changes were set by statute.
Every other year, increases were (and continue to be) determined under automatic adjustment provisions of the Social Security Act.
Limiting the amount of earnings subject to taxation ensures a cap on the amount of Social Security taxes paid by both employees and employers. In 2026, the cap is $11,439 for the employee. The number represents the maximum payment and applies to those who earn $184,500 or more annually.
By contrast, there is no wage base for Medicare taxes.
Frequently Asked Questions
- How is FICA calculated? – The current employer tax rate is 6.2% for Social Security. The present day Medicare tax rate is 1.45% for employers. The employer FICA tax burden is 7.65%. The total FICA contribution should equal 15.3%.
- How do you calculate Medicare tax with payroll software? – Calculating the Medicare tax is easier if you have access to specific payroll tools, including: magnetic/electronic filing, automated computing, and user defined fields.
We offer a free 1099-etc Demo software so that you can be sure that our software works for you. Access free technical support Monday through Friday from 8am to 6pm central time with extended hours in January and April.