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 — 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 — 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 — your wage data never leaves your device. Not tax advice.