Payroll Tax Calculator 2026

Calculate employer payroll taxes including Social Security, Medicare, and FUTA. Our payroll tax calculator helps employers and self-employed workers estimate total tax obligations.

Payroll Tax Calculator

Results update automatically

$

Your Results

Instant calculation

Total Employer Tax

$337.50

Per pay period

Employer SS (6.2%)

186.0%

Employer Medicare (1.45%)

43.5%

FUTA (0.6%)

18.0%

SUI (Est. 3%)

90.0%

Total Cost to Employ

$3,337.50

Related Calculators

Paycheck Calculator
Quarterly Taxes
1099 Tax Calculator
Federal Income Tax

Understanding Payroll Taxes in 2026

Payroll taxes are taxes imposed on employers and employees based on wages paid. These taxes fund Social Security, Medicare, and unemployment insurance. Our payroll tax calculator helps both employers and self-employed individuals understand their total tax obligations beyond just income tax.

Types of Payroll Taxes

Payroll taxes fall into several categories, each with different rates and wage bases:

Payroll Tax Categories for 2026

Social Security (FICA)12.4%

Split 6.2% employee + 6.2% employer. Wage base: $176,100

Medicare (FICA)2.9%

Split 1.45% employee + 1.45% employer. No wage limit

Additional Medicare Tax0.9%

Employee only. Over $200K single / $250K married

FUTA (Federal Unemployment)6.0%

Employer only. First $7,000 wages. Credits reduce to ~0.6%

SUTA (State Unemployment)Varies

Employer only. Rates vary by state and employer history

Employer vs. Employee Payroll Taxes

Both employers and employees share responsibility for payroll taxes:

Tax Responsibility Breakdown

Employee Pays
  • • 6.2% Social Security (up to $176,100)
  • • 1.45% Medicare (all wages)
  • • 0.9% Additional Medicare (high earners)
  • • Federal income tax withholding
  • • State income tax (if applicable)
Employer Pays
  • • 6.2% Social Security (matches employee)
  • • 1.45% Medicare (matches employee)
  • • FUTA (up to 6% on first $7,000)
  • • SUTA (varies by state)
  • • State disability insurance (some states)

Self-Employment Tax: Paying Both Sides

Self-employed individuals pay both the employer and employee portions of FICA taxes:

  • Total Self-Employment Tax Rate: 15.3% (12.4% Social Security + 2.9% Medicare)
  • Social Security Limit: Only applies to first $176,100 of net self-employment income
  • Additional Medicare: 0.9% on self-employment income over $200,000 (single) or $250,000 (married)
  • Business Deduction: Deduct 50% of self-employment tax on your tax return

For example, a freelancer earning $100,000 pays $15,300 in self-employment tax, but can deduct $7,650 on their tax return, effectively reducing the net cost.

2026 Social Security Wage Base

The Social Security tax only applies to wages up to the annual wage base limit:

Social Security Wage Base History

2026$176,100
2024$168,600
2023$160,200

Maximum Social Security tax in 2026: $176,100 × 6.2% = $10,918 per employee

Once an employee's wages exceed $176,100, Social Security tax stops. Medicare continues on all wages with no limit. High earners also pay the Additional Medicare Tax.

💡 Pro Tip: Tax Planning for Employers

Employers can reduce FUTA liability by paying state unemployment taxes on time. Most employers receive a 5.4% credit, reducing FUTA to 0.6% on the first $7,000. Late SUTA payments or high employee turnover can reduce this credit. Monitor your state's unemployment tax rates and payment deadlines carefully.

FUTA and SUTA: Unemployment Taxes

Federal and state unemployment taxes fund unemployment benefits:

  • FUTA: 6.0% on first $7,000 of each employee's wages. With 5.4% credit for timely SUTA payments, effective rate is 0.6%.
  • SUTA: Rates vary by state (typically 2-5%) and employer's experience rating. New employers start with a standard rate.
  • Wage Base: Most states have higher wage bases than FUTA—often $10,000 to $50,000.
  • Experience Rating: Employers with few layoffs get lower rates over time; frequent layoffs increase rates.

Payroll Tax Deadlines and Reporting

Employers must deposit and report payroll taxes on specific schedules:

  • Deposit Schedule: Monthly or semi-weekly depending on total tax liability (determined by IRS lookback period).
  • Form 941: Quarterly report of income tax and FICA withholding. Due last day of following month.
  • Form 940: Annual FUTA tax return. Due January 31 (or February 10 if deposited all FUTA timely).
  • W-2 and W-3: Annual wage and tax statements. Due to employees by January 31, to SSA by January 31.

Frequently Asked Questions About Payroll Taxes

Income tax is based on your total income and filing status, with rates from 10% to 37%. Payroll taxes (FICA) are flat rates—6.2% for Social Security and 1.45% for Medicare—that fund specific programs. Employers also pay matching payroll taxes, while income tax is only the employee's responsibility.
Yes. Employers pay matching Social Security (6.2%) and Medicare (1.45%) on all employee wages. They also pay FUTA (up to 6% on first $7,000) and SUTA (state unemployment, varies). These employer-side taxes are a business expense, not withheld from employee pay.
FICA (Federal Insurance Contributions Act) is the combined Social Security and Medicare tax. Employees pay 6.2% for Social Security (on wages up to $176,100 in 2026) plus 1.45% for Medicare (all wages). High earners pay an additional 0.9% Medicare tax on wages over $200,000.
For each employee: multiply gross wages by 6.2% for Social Security (stop at $176,100) and 1.45% for Medicare. Add 0.9% Medicare on wages over $200,000. Calculate federal income tax withholding from W-4 using IRS tables. Add state taxes if applicable. Our calculator above handles these calculations automatically.
Self-employed individuals pay both the employer and employee portions of FICA (15.3% total vs. 7.65% for employees). However, they can deduct half of this tax on their tax return, which reduces their income tax. This deduction doesn't apply to Social Security and Medicare taxes paid by regular employees.