Social Security tax
Social Security tax is a Federal Insurance Contributions Act (FICA) tax on wages. This tax provides most of the funding for Social Security. The tax is 12.4% of an employee’s wages, but the tax cost is split between the employee and employer with each paying 6.2%. This tax only applies up to a certain amount of wages called the maximum wage base which changes every year with the 2026 maximum being $184,500. This means that in 2026 no wages above $184,500 would incur Social Security taxes. This is to be contrasted with Medicare taxes which apply to all income.
[Last reviewed in June of 2026 by the Wex Definitions Team]
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