FICA Tax
FICA is the payroll tax that funds Social Security and Medicare. Employees pay 7.65% of wages — 6.2% for Social Security (up to an annual wage cap) plus 1.45% for Medicare — and employers match it. It's separate from federal income tax and comes out of nearly every paycheck.
For 2026, Social Security tax stops on wages above $184,500, while Medicare has no cap and adds an extra 0.9% on high earners. Because FICA applies before deductions like a traditional 401(k), it's one tax that pre-tax contributions don't reduce.