Payroll Tax Calculator 2026
Calculate total 2026 US payroll taxes for employer and employee: FICA (6.2% Social Security on first $176,100 + 1.45% Medicare unlimited), Additional Medicare 0.9% above $200k, FUTA 0.6% on first $7,000, and SUTA state unemployment. Per IRS Publication 15 (2026) and SSA wage base announcement.
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2026 Payroll Tax Rates & Wage Bases
US payroll taxes for tax year 2026 are: Social Security 6.2% on the first $176,100 of wages (employer + employee each, totaling 12.4%); Medicare 1.45% on all wages (employer + employee each, totaling 2.9%); Additional Medicare 0.9% withheld from employees only on wages above $200,000 (single) or $250,000 (married joint), per the IRS Affordable Care Act provisions; FUTA 0.6% on the first $7,000 of wages (employer only — assuming 5.4% state unemployment credit); and SUTA (State Unemployment Tax) which varies by state, wage base, and the employer's experience rating, typically 0.5% to 6.2% on wage bases ranging from $7,000 (FL) to $72,800 (HI). The Social Security wage base of $176,100 for 2026 is set annually by the Social Security Administration. Last updated May 2026.
What FICA, FUTA, and SUTA Pay For
FICA (Federal Insurance Contributions Act) funds two programs: Social Security (the OASDI program — Old-Age, Survivors, and Disability Insurance) and Medicare (HI — Hospital Insurance, also known as Medicare Part A). Per SSA data, FICA taxes fund approximately 90% of Social Security benefits and roughly 35% of Medicare expenditures. FUTA (Federal Unemployment Tax Act) and SUTA together fund the unemployment insurance system that pays benefits to laid-off workers. SUTA is by far the larger component — FUTA mostly funds federal administration and emergency programs, while SUTA pays the actual weekly benefit checks. SUTA rates are recalculated annually based on the employer's claim history (the "experience rating"). New employers pay the state new-employer rate; established employers with low layoff history pay below the average.
True Cost of Hiring — Beyond the Salary
For an employer, the true labor cost is salary plus roughly 7.65-9% in payroll taxes (FICA + FUTA + SUTA combined). A $75,000 employee actually costs the employer approximately $80,800 in cash compensation. Add benefits (health insurance, 401(k) match, paid leave) and the fully-loaded cost is typically 25-35% above base salary. For self-employed individuals, the self-employment tax (SECA) equivalent is 15.3% on net earnings up to $176,100 plus 2.9% above — effectively paying both the employer and employee halves of FICA. Half of SECA is deductible as an adjustment to AGI, per IRS Schedule SE instructions.
Reducing Payroll Tax Through 401(k) and HSA
Pre-tax 401(k) and traditional IRA contributions reduce federal and state income tax but do NOT reduce FICA (Social Security + Medicare) wages. HSA contributions made through a Section 125 cafeteria plan (employer payroll deduction) DO reduce FICA wages — a significant advantage. Maxing the 2026 HSA contribution of $4,400 (self-only) or $8,750 (family) via payroll cuts both income tax and FICA, saving an additional 7.65% versus contributing post-tax. Source: IRS Publication 15 (Circular E) Employer's Tax Guide 2026, Social Security Administration 2026 wage base announcement.
Payroll Tax Calculator 2026 — Worked Example for a $85,000 Salary
Concrete 2026 numbers to sanity-check the calculator. Take a $85,000/year salary paid in Florida (SUTA base $7,000, 2.7% new-employer rate). Employer side: Social Security $5,270 (6.2% × $85,000), Medicare $1,233 (1.45%), FUTA $42 (0.6% × $7,000), SUTA $189 (2.7% × $7,000) — total employer payroll tax burden $6,734, or 7.92% of gross wages. Employee side: Social Security $5,270, Medicare $1,233, no Additional Medicare (below $200,000 single threshold) — total employee FICA withholding $6,503, or 7.65% of gross. Total government take: $13,237 on an $85,000 salary — before any federal or state income tax. Cross-check against the IRS Publication 15 (Circular E) Employer's Tax Guide 2026 and the SSA Contribution and Benefit Base table to confirm the current-year wage cap before running payroll.
Source: IRS Publication 15 (2026 Employer's Tax Guide) + SSA 2026 wage base announcement. Updated 2026-07-16.
Frequently Asked Questions
What is the 2026 Social Security wage base?
The Social Security wage base for 2026 is $176,100. Wages above this amount are not subject to the 6.2% Social Security portion of FICA (employer and employee). Medicare (1.45% each) has no wage cap.
What is Additional Medicare Tax?
A 0.9% tax on wages above $200,000 (single) or $250,000 (married filing jointly) — paid by employees only, not the employer. Employers must begin withholding once an employee crosses $200,000 in a calendar year regardless of filing status.
How is FUTA different from SUTA?
FUTA is federal unemployment tax at 0.6% on the first $7,000 of wages — flat for all employers nationwide (assuming full state credit). SUTA is state unemployment tax, which varies by state, by employer experience rating (claim history), and by state wage base ($7,000-$72,800).
Do 401(k) contributions reduce FICA tax?
No. Traditional 401(k), 403(b), and 457 contributions reduce federal and state income tax wages but FICA wages remain the full gross. Roth 401(k) is post-tax for all purposes. HSA contributions made through payroll deduction (Section 125 plan) DO reduce both income tax and FICA wages.
What is the self-employment tax rate for 2026?
Self-employment tax (SECA) is 15.3% on net earnings up to $176,100 plus 2.9% (Medicare) above that, plus 0.9% Additional Medicare above $200k/$250k thresholds. Half of SECA is deductible as an adjustment to AGI on Form 1040 Schedule 1.
Why is my employer's actual cost higher than my salary?
Because the employer pays its own 6.2% Social Security, 1.45% Medicare, 0.6% FUTA, and 0.5-6.2% SUTA on top of your gross wage. Combined, this adds 7.65-9% to base salary. Plus benefits (health, 401(k) match, paid leave) typically pushes total cost 25-35% above gross wage.
How much payroll tax does a $100,000 employee pay in 2026?
Employee side: Social Security 6.2% × $100,000 = $6,200; Medicare 1.45% × $100,000 = $1,450 — total FICA withholding $7,650 (7.65%). Employer matches the same $7,650 plus FUTA ($42) and state SUTA (roughly $200-$500). Together the government collects roughly $15,500 in payroll tax on a $100,000 salary before any federal or state income tax. This scales down for 401(k) elections that reduce income-tax wages but NOT FICA wages.
Did the 2026 Social Security wage base go up?
Yes. The 2026 Social Security wage base rose to $176,100 (from $168,600 in 2025), per the SSA Contribution and Benefit Base table announced October 2025. This means high earners pay an extra $465 in employee Social Security tax at the top compared to 2025 (6.2% × $7,500 increase). Medicare (1.45%) has no cap and applies to every dollar of wages, so Medicare withholding scales linearly regardless of the Social Security wage base.