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Federal Insurance Contributions Act (FICA) Changes for 2026

Written by GreenSlate | Nov 22, 2024 9:51:00 PM

The Social Security wage base has increased from $176,100 to $184,600 for 2026, which increases the maximum individual contribution by 4.77%.

  • The Medicare tax rate for 2026 remains at 1.45% of all covered earnings for employers and employees.
  • The Additional Medicare Tax of .9% applies to earned income of more than $200,000 ($250,000 for married couples filing jointly).
  • Employers are required to withhold the additional .9% on covered wages in excess of $200,000, but there is no employer matching contribution.

2025 vs. 2026
Social Security and Medicare Contributions

DESCRIPTION 2025 2026 INCREASE
Social security tax rate for employers 6.20% 6.20% 0
Social security tax rate for employees 6.20% 6.20% 0
Social security wage base $176,100
$184,500 4.77%
Maximum social security tax for employees $10,918.20 $11,439.00 4.77%
Medicare tax rate for employers 1.45% 1.45% 0
Medicare tax rate for employees 1.45% 1.45% 0
Medicare tax rate on employee’s wages over $200,000* 2.35% 2.35% 0
Medicare wage base No Limit No Limit N/A

*Employers are required to withhold an additional 0.9% from employee wages in excess of $200,000, but there is not a matching increase on the employer contribution.

View the 2026 Social Security Administration Fact Sheet and get the latest federal tax and budgeting details on our blog. 

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This information in this communication is general in nature, and is not intended, nor should it be construed, as legal, accounting, tax or other professional advice rendered by GreenSlate, LLC. The reader should contact his or her attorney, CPA, or tax professional prior to taking any action based upon this information.