What Is OASDI Tax on a Paycheck? 2026 Rates, Limits, and Examples

OASDI tax is a deduction that many American workers see on their paychecks, but its name can be confusing. If your pay stub lists OASDI, Social Security, or Fed OASDI/EE, you are generally looking at the Social Security portion of your payroll taxes.

For 2026, employees pay 6.2% of their Social Security-taxable wages, while employers contribute another 6.2%. This tax applies only up to the annual Social Security wage base of $184,500. Self-employed workers generally pay both portions on their covered net earnings, subject to applicable rules.

Understanding OASDI can help you check your paycheck, understand why Social Security withholding sometimes stops during the year, and estimate how much of your salary goes toward Social Security.

In this guide, you will learn what OASDI means, how the 2026 tax rate works, how to calculate your deduction, and what NYC employees and freelancers should know.

OASDI Tax at a Glance: 2026 Rates and Limits

Here are the key OASDI tax figures for 2026:

• Employee tax rate: 6.2%
• Employer tax rate: 6.2%
• Combined Social Security tax rate: 12.4%
• Annual Social Security wage base: $184,500
• Maximum employee OASDI contribution: $11,439
• Maximum employer OASDI contribution: $11,439

These figures reflect the Social Security Administration’s published 2026 contribution and benefit base.

What Does OASDI Stand For?

OASDI stands for Old-Age, Survivors, and Disability Insurance. It is the federal Social Security program that provides benefits to eligible retired workers, people with qualifying disabilities, and certain family members of insured workers.

The program covers three main areas:

• Old-Age Insurance: Social Security retirement benefits for eligible workers.
• Survivors Insurance: Benefits that may be available to qualifying family members after an insured worker dies.
• Disability Insurance: Social Security Disability Insurance (SSDI) benefits for eligible workers who meet the program’s disability and work-history requirements.

The Social Security Administration (SSA) administers the program. Payroll taxes collected from covered workers and their employers help finance these benefits.

Your covered earnings and Social Security contributions form part of your work record, which the SSA uses when determining eligibility and benefits.

For official program information, visit the Social Security Administration.

What Is OASDI Tax on a Paycheck?

OASDI tax is the Social Security payroll tax withheld from covered employee wages. Employers generally deduct the employee’s share from each paycheck and pay an additional employer share separately.

Your pay stub may list this deduction under different names, including:

• OASDI
• Social Security
• Social Security Tax
• Fed OASDI/EE
• FICA-SS

The exact label depends on your employer’s payroll system.

For example, suppose your Social Security-taxable wages for a biweekly paycheck are $2,000.

Calculation:

$2,000 × 6.2% = $124

Your employee OASDI deduction would generally be $124. Your employer typically contributes another $124, but that employer contribution is not an additional deduction from your take-home pay.

Social Security-taxable wages may differ from federal income-taxable wages because some benefits and deductions receive different tax treatment. Check your pay stub to verify the amount subject to Social Security tax.

What Is the OASDI Tax Rate for 2026?

The standard OASDI tax rate for 2026 is 6.2% for employees and 6.2% for employers.

Contribution	2026 tax rate
Employee	6.2%
Employer	6.2%
Combined employee and employer contribution	12.4%
Self-employed Social Security portion	Generally 12.4%

For a regular W-2 employee, the employer’s contribution is paid separately and does not appear as an extra deduction from the employee’s paycheck.

Self-employed individuals generally cover both portions of Social Security tax on their net earnings from self-employment, subject to applicable calculation rules.

OASDI is only one part of the payroll tax system. Medicare tax is calculated separately.

What Is the 2026 OASDI Wage Base Limit?

The Social Security wage base is the maximum amount of annual earnings subject to regular OASDI tax.

For 2026, the wage base limit is $184,500.

Once your covered earnings from a single employer reach that limit during the calendar year, the employer generally stops withholding regular Social Security tax for the rest of that year. Withholding normally starts again in January of the following year.

The wage base does not limit how much you can earn. It only limits the amount of earnings subject to regular Social Security tax.

Social Security Wage Base: 2024–2026

Tax year	Social Security wage base
2024	$168,600
2025	$176,100
2026	$184,500

The SSA adjusts the wage base under federal law based on changes in the national average wage index.

For the official figures, see the SSA contribution and benefit base table.

How to Calculate OASDI Tax

For a regular employee whose covered wages remain below the annual wage base, the calculation is straightforward.

OASDI tax = Social Security-taxable wages × 0.062

Follow these steps:

1. Identify the wages subject to Social Security tax for the pay period.
2. Multiply those wages by 6.2%.
3. Check your year-to-date Social Security wages to determine whether you have reached the annual limit.
4. Compare the result with the OASDI deduction on your pay stub.

Example: OASDI Tax on a $3,000 Paycheck

If your Social Security-taxable wages for one paycheck are $3,000:

$3,000 × 0.062 = $186

Your employee OASDI deduction would generally be $186, assuming you have not already reached the annual wage base limit.

Maximum OASDI Tax for Employees in 2026

The maximum regular employee contribution is calculated using the annual wage base:

$184,500 × 0.062 = $11,439

This is the employee’s OASDI contribution only. Medicare tax, federal income tax, and other applicable taxes are separate.

OASDI Tax Examples for Different Salaries

The following examples show the estimated annual employee OASDI contribution for different salary levels in 2026. They assume the full salary is subject to Social Security tax and that the employee works for one employer throughout the year.

Annual salary	OASDI-taxable wages	Annual employee OASDI
$40,000	$40,000	$2,480
$50,000	$50,000	$3,100
$75,000	$75,000	$4,650
$100,000	$100,000	$6,200
$150,000	$150,000	$9,300
$184,500	$184,500	$11,439
$200,000	$184,500	$11,439
$250,000	$184,500	$11,439

These estimates exclude Medicare tax, federal income tax, state income tax, local income tax, and other deductions.

Example: OASDI Tax on a $50,000 Salary

A worker earning $50,000 in Social Security-taxable wages pays:

$50,000 × 6.2% = $3,100 annually.

If the worker receives 26 equal biweekly paychecks, the estimated OASDI deduction is:

$3,100 ÷ 26 = $119.23 per paycheck.

Example: OASDI Tax on a $100,000 Salary

A worker earning $100,000 in covered wages pays:

$100,000 × 6.2% = $6,200 annually.

With 26 equal biweekly paychecks, the estimated deduction is approximately $238.46 per paycheck.

Example: OASDI Tax on a $200,000 Salary

A worker earning $200,000 does not pay regular OASDI tax on the entire salary in 2026.

Instead, the calculation is capped at $184,500:

$184,500 × 6.2% = $11,439.

The remaining $15,500 is above the Social Security wage base and is not subject to regular OASDI tax. However, that income may still be subject to Medicare tax and applicable income taxes.

OASDI vs. Medicare vs. FICA: What’s the Difference?

OASDI, Medicare, and FICA often appear together on pay stubs, but they do not mean exactly the same thing.

• OASDI: The Social Security portion of payroll taxes.
• Medicare tax: Helps fund the federal Medicare hospital insurance program.
• FICA: The Federal Insurance Contributions Act, which covers Social Security and Medicare payroll taxes.

2026 Social Security and Medicare Tax Rates

Tax	Employee rate	Employer rate	Wage limit
OASDI / Social Security	6.2%	6.2%	$184,500
Medicare	1.45%	1.45%	No annual wage cap
Standard combined FICA	7.65%	7.65%	Social Security cap applies to OASDI

An additional 0.9% Medicare tax can apply to an individual’s Medicare wages above the applicable threshold. Employers must generally begin withholding this additional tax when wages paid to an employee exceed $200,000 during the calendar year, regardless of filing status.

The employee’s final additional Medicare tax liability depends on the applicable rules and filing circumstances.

For official information, consult IRS Topic No. 751: Social Security and Medicare Withholding Rates.

Why Did OASDI Stop Coming Out of My Paycheck?

If your OASDI deduction suddenly disappears later in the year, you may have reached the Social Security wage base limit.

For example, an employee who earns more than $184,500 in covered wages from one employer during 2026 generally stops paying regular OASDI tax after reaching that amount.

This can cause take-home pay to increase even when the employee’s salary has not changed.

However, other deductions may continue, including:

• Medicare tax
• Federal income tax withholding
• New York State income tax withholding, where applicable
• NYC personal income tax withholding, where applicable
• Health insurance premiums
• Retirement contributions

If OASDI stops earlier than expected, check your year-to-date Social Security wages and pay statements. If the amounts do not match, ask your payroll department to review the withholding.

Do NYC Workers Pay OASDI Tax?

Yes. Most New York City employees pay the same federal OASDI tax as other covered employees in the United States. Living or working in NYC does not create a separate city OASDI tax rate.

However, NYC workers may have other taxes deducted from their paychecks, including federal income tax, New York State income tax, and NYC personal income tax when applicable.

That is why the OASDI amount on your pay stub should not be confused with your total tax burden.

To understand how these deductions affect your take-home pay, use our NYC Paycheck Calculator. It can help you estimate your paycheck after applicable federal, state, and local taxes.

Your actual result depends on your salary, filing status, pay frequency, covered wages, and other applicable deductions.

How Does OASDI Work for Self-Employed Workers?

Self-employed workers generally pay both the employee and employer portions of Social Security tax on their covered net earnings.

The OASDI portion is generally 12.4%, subject to the applicable wage base and self-employment tax rules. Medicare tax is calculated separately.

Example: OASDI Tax on $60,000 in Self-Employment Earnings

If $60,000 represents the relevant earnings subject to the Social Security portion of self-employment tax, the basic calculation is:

$60,000 × 12.4% = $7,440

This is only an illustrative calculation of the OASDI portion, not the person’s complete self-employment tax or final tax bill. The full calculation can involve adjustments to net earnings, Medicare tax, and other tax rules.

Eligible self-employed individuals may deduct the employer-equivalent portion of self-employment tax when calculating adjusted gross income. This deduction does not eliminate the underlying Social Security tax liability.

Freelancers in New York can use our NYC Freelancer and 1099 Tax Calculator to estimate how self-employment taxes affect their income.

For detailed federal guidance, see the IRS explanation of self-employment tax.

Who Is Exempt From OASDI Tax?

Most employees covered by Social Security must pay OASDI tax. However, certain workers and employment arrangements may qualify for specific exemptions.

Examples may include:

• Certain nonresident students, scholars, and other temporary workers whose visa status and employment meet the applicable exemption rules.
• Certain employees of foreign governments working in official capacities.
• Members of qualifying religious groups who meet strict legal requirements.
• Certain government employees covered by qualifying alternative retirement arrangements.

These exemptions are not automatic for everyone in a particular group. Eligibility depends on the worker’s circumstances, employment, visa classification, and applicable federal rules.

Self-employed individuals with net earnings below the applicable threshold may also have no self-employment tax liability. Generally, the filing threshold for self-employment tax is $400 in net earnings, subject to applicable rules.

If you believe an exemption applies to you, confirm your eligibility with the IRS or a qualified tax professional before assuming a payroll deduction is incorrect.

Can You Get a Refund for Excess OASDI Tax?

Yes. Certain Social Security tax overpayments can be corrected.

One common situation occurs when a person works for two or more employers during the same year. Each employer generally calculates Social Security withholding based on the wages it pays, without combining the employee’s earnings from other employers.

Example: Excess OASDI Withholding From Two Employers

Suppose you earn $100,000 from each of two employers in 2026.

Each employer may withhold 6.2% on the $100,000 it pays, resulting in total employee OASDI withholding of:

$100,000 × 6.2% × 2 = $12,400

The maximum regular employee OASDI contribution for 2026 is $11,439.

The potential excess is:

$12,400 − $11,439 = $961

If you qualify under the applicable rules, you can generally claim the excess Social Security tax withheld by multiple employers as a credit on your federal income tax return.

Different rules apply when the overpayment results from a single employer’s payroll error. In that case, contact the employer to request a correction.

Check the current IRS instructions for your tax return to determine how to report excess Social Security withholding.

Frequently Asked Questions About OASDI Tax

Final Thoughts

OASDI is an important part of your paycheck because it helps fund Social Security retirement, survivor, and disability benefits. For 2026, the employee rate is 6.2% on covered wages up to $184,500, while self-employed workers generally pay both Social Security portions on their covered net earnings.

Understanding this tax can help you identify potential payroll errors, understand why withholding stops at higher earnings, and estimate your take-home pay more accurately.

If you live or work in New York City, use our NYC Paycheck Calculator to estimate how Social Security, Medicare, federal income taxes, New York State taxes, and applicable NYC taxes affect your paycheck.

Sources and Further Reading

• Social Security Administration — Contribution and Benefit Base
• IRS — Social Security and Medicare Withholding Rates
• IRS — Self-Employment Tax

Disclaimer: This article is for educational purposes only and is not individualized tax advice. Tax rules and eligibility requirements can vary by situation. Verify current requirements with the IRS or a qualified tax professional.