Payroll taxes fund Social Security and Medicare. They are often called FICA (for employees) or SE tax (for the self-employed). The key 2026 number is the Social Security wage base, which rises every year with average wages.
The 2026 Social Security wage base
- $184,500 is the maximum earnings subject to the 6.2% Social Security tax in 2026 (up from $176,100 in 2025)
- An employee with wages at or above that pays $11,439 in Social Security tax; the employer pays a matching $11,439
- Self-employed pay 12.4% on net earnings up to the base
Once wages pass $184,500, Social Security tax stops; only Medicare continues.
Medicare has no ceiling
The Medicare tax is 1.45% each for employee and employer (2.9% total), with no wage base limit. An Additional Medicare Tax of 0.9% applies to wages above:
- $200,000 for single filers
- $250,000 for married filing jointly
- $125,000 for married filing separately
Employers start withholding the 0.9% once wages top $200,000, regardless of filing status. There is no employer match on the extra 0.9%.
Self-employed: the 15.3% rate
A self-employed person pays the full 15.3% (12.4% Social Security + 2.9% Medicare) on net earnings up to the base, then 2.9% (or 3.8% above the surtax threshold) above it. You deduct half of the SE tax on Form 1040.
A note on Medicaid
Medicaid is not funded by a payroll tax on wages, so there is no "Medicaid tax base" in the way there is for Social Security and Medicare. This article covers the FICA/SE taxes that actually appear on your paycheck; Medicaid is financed separately from general federal and state revenues.
Numbers: a high earner
An employee earning $300,000 in 2026:
- Social Security: 6.2% of $184,500 = $11,439 (stops there)
- Medicare: 1.45% of $300,000 = $4,350, plus 0.9% of ($300,000 - $200,000) = $900
- Total employee FICA: $16,689; the employer pays a matching $15,789 (no surtax match)
Disclaimer: This article is general educational information, not tax, legal, or investment advice. Dollar amounts come from the 2026 sources listed at the end of this article and may change. Before you act, talk to a licensed CPA, EA, or tax attorney about your own situation.