Social Security, Medicare and self-employment tax in 2026
The payroll (FICA) tax rates, the 2026 Social Security wage base of $184,500, and how self-employment tax works.
Sourced from official pages · Updated September 30, 2026💡 Key takeaways
- Employees pay 6.2% Social Security (up to $184,500 of wages in 2026) and 1.45% Medicare on all wages.
- Employers pay a matching share; self-employed people pay both halves (15.3%).
- An extra 0.9% Medicare tax applies to wages above $200,000 (single) or $250,000 (married filing jointly).
- Half of self-employment tax is deductible.
Payroll (FICA) taxes for employees
| Tax | Rate | Limit |
|---|---|---|
| Social Security | 6.2% | Earnings up to $184,500 in 2026 |
| Medicare | 1.45% | No wage limit |
| Additional Medicare Tax | 0.9% | Wages above $200,000 (single / head of household), $250,000 (married filing jointly), $125,000 (married filing separately) |
Employers pay a matching 6.2% and 1.45% (the Additional Medicare Tax is paid only by the employee).
Self-employment tax
If you are self-employed, you pay both halves: 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of your net self-employment earnings; the Social Security part stops at the $184,500 wage base. You can deduct half of the self-employment tax when figuring your income tax.
Social Security numbers for 2026
The Social Security Administration announced a 2.8% cost-of-living adjustment for benefits in 2026. The earnings test limit is $24,480 for workers younger than full retirement age, and $65,160 in the year they reach full retirement age.
Where these taxes show up
On a pay stub they appear as FICA, Social Security or OASDI and Medicare. They are separate from federal income tax and are not affected by your filing status or deductions, except for the additional Medicare tax thresholds.
Self-employment tax step by step
- Take net self-employment earnings (business income minus expenses).
- Multiply by 92.35% to get the amount subject to the tax.
- Multiply by 15.3%: 12.4% Social Security (up to the wage base) plus 2.9% Medicare.
- Deduct half of the result on your income tax return.
Why the wage base matters
Social Security tax stops once your wages reach the wage base ($184,500 in 2026). Medicare tax has no cap. If you have two jobs, each employer withholds Social Security separately; excess above the base can be claimed back on your return.
🔤 Key terms
| Term | Meaning |
|---|---|
| FICA | Federal Insurance Contributions Act payroll taxes |
| Wage base | Maximum earnings subject to Social Security tax ($184,500) |
| Self-employment tax | Both halves of Social Security and Medicare for the self-employed |
| Additional Medicare Tax | A 0.9% tax on high wages paid by the employee |
🧮 Example: $60,000 of self-employment income
With $60,000 of net earnings, 92.35% is $55,410, and 15.3% of that is about $8,478 of self-employment tax. Half of it (about $4,239) is deductible when figuring income tax. Illustration only.
⚠️ Common mistakes to avoid
- Forgetting that self-employed people pay both halves of FICA.
- Ignoring the deduction for half of self-employment tax.
- Not paying estimated taxes and facing an underpayment penalty.
- Assuming Medicare tax stops at the wage base — it does not.
🛠️ Try it yourself
❓ Frequently asked questions
What is the Social Security wage base for 2026?
$184,500 according to the Social Security Administration.
Do I pay FICA on investment income?
Not FICA, but higher earners may owe the 3.8% net investment income tax.
Is the additional Medicare tax paid by employers?
No, only by the employee.
Can I opt out of Social Security tax?
Generally no; only limited exemptions exist.
Does my employer pay part?
Yes, a matching 6.2% and 1.45%.
📚 Sources
This guide is general information, not financial, tax or legal advice. Rules and limits change; confirm with the sources above or a licensed professional.