Payroll Tax Calculator 2026
Calculate Social Security tax, Medicare tax, and other payroll deductions. Essential tool for employers and employees to understand payroll taxes.
Payroll Tax Calculator
2026 Tax Limits
Tax Rates
Key Information
- • Social Security tax is capped at $168,600
- • Medicare tax has no income limit
- • Additional Medicare tax applies to high earners
- • Employer matches Social Security and Medicare
How Payroll Taxes Work
Social Security
Funds retirement, disability, and survivor benefits. Both employee and employer pay 6.2%.
Medicare
Funds health insurance for seniors. Both employee and employer pay 1.45%.
Additional Medicare
Additional 0.9% tax on high earners. Only employees pay this tax.
Monthly Breakdown
Understanding Payroll Taxes
Social Security Tax
Social Security tax is 6.2% of your wages, but only up to a certain limit. For 2026, this limit is $168,600. Once you reach this limit, you won't pay additional Social Security tax.
This tax funds Social Security benefits for retirees, disabled individuals, and survivors. Both employees and employers pay this tax, totaling 12.4%.
Medicare Tax
Medicare tax is 1.45% of all your wages with no income limit. This tax funds Medicare health insurance for seniors and some disabled individuals.
High earners may also be subject to an additional 0.9% Medicare tax on income above certain thresholds. Both employees and employers pay this tax, totaling 2.9%.
2026 Payroll Tax Rates & Limits
Social Security
Medicare
Additional Medicare
Employer vs Employee Responsibilities
Employee Responsibilities
- •Pay 6.2% Social Security tax on wages up to $168,600
- •Pay 1.45% Medicare tax on all wages
- •Pay additional 0.9% Medicare tax if income exceeds $200,000
- •Taxes are automatically withheld from paycheck
Employer Responsibilities
- •Match employee Social Security tax (6.2%)
- •Match employee Medicare tax (1.45%)
- •Pay federal and state unemployment taxes
- •File quarterly payroll tax returns