OASDI Tax Calculator
Calculate OASDI (Old Age, Survivors, Disability Insurance) Social Security tax for 2026. Employee 6.2% + employer 6.2% up to wage base of $176,100. Self-employed pay both halves (12.4%) as SE tax.
OASDI 2026 Rates and Wage Base
OASDI tax = 6.2% employee + 6.2% employer = 12.4% combined. 2026 wage base limit: $176,100 (up from $168,600 in 2025). Above the wage base, no additional OASDI applies. Medicare tax (1.45% + 0.9% surtax over $200K) has NO wage base — applies to all wages. The wage base resets each calendar year — high earners hit the cap mid-year and see paycheck increase.
Self-Employment Tax (SE Tax) — Pay Both Sides
Self-employed pay 12.4% OASDI + 2.9% Medicare = 15.3% SE tax on net self-employment earnings. Compute on Schedule SE. Deduction: employer-equivalent half (50% of SE tax) is above-the-line income tax deduction. Net effective SE tax rate: about 14.13% accounting for the deduction. Significant for 1099 contractors, freelancers, sole proprietors not on S-corp salary.
S-Corp Salary Trick — Legitimate Tax Planning
Switch from sole proprietor to S-corp election: pay yourself reasonable salary (subject to OASDI + Medicare) and take remainder as distribution (no SE tax). Example: $200K profit. Sole prop: $200K × 14.13% = $28K SE tax. S-corp with $80K salary: $80K × 7.65% × 2 = $12K SS/Medicare. Savings: $16K/yr. Must pay 'reasonable salary' — IRS audits aggressive low salaries (rule of thumb: 50%+ of profit on services, less on capital-intensive businesses).
The Wage Base Bump and Take-Home Surge
Employee earning $300K: hits $176,100 wage base at month ~7 (assuming roughly even pay). Last 5 months of year, OASDI stops withholding — paycheck jumps about 6.2% net. Many high earners forget this and don't adjust extra savings or withholding. Pro tip: use the wage base bump months to max 401(k), increase emergency fund, or pay down debt — temporary higher net take-home should not become temporary higher spending.
Sources: SSA 2026 Wage Base announcement, IRS Pub 15, IRC §3121. Last updated: May 2026. Not tax advice.
Frequently Asked Questions
What is OASDI?
Old Age, Survivors, Disability Insurance \u2014 the Social Security portion of FICA. 6.2% employee + 6.2% employer = 12.4% combined. Applies up to wage base ($176,100 in 2026).
What is the 2026 wage base?
$176,100. Up from $168,600 in 2025. Wages above the cap are NOT subject to OASDI. Medicare (1.45% + 0.9% surtax over $200K) has no wage base.
What's the self-employment tax rate?
15.3% total: 12.4% OASDI + 2.9% Medicare. Self-employed pay both halves. Above $200K, additional 0.9% Medicare. Half of SE tax is above-the-line income tax deduction.
S-corp election saves SE tax?
Yes, legitimately. Pay reasonable salary subject to FICA, take rest as distribution (no SE tax). Must pay reasonable salary \u2014 IRS audits unreasonably low salaries. Saves $10K-$30K/yr for high earners.
Is this tool free?
Yes. 100% free, no sign-up. All math runs in your browser \u2014 your wage data never leaves your device. Not tax advice.