Payroll Tax Calculator 2026

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.