Summary: In 2026 employers pay Social Security at 6.2 percent on wages up to $184,500 per worker, Medicare at 1.45 percent on all wages, FUTA at a net 0.6 percent on the first $7,000 per worker, and state unemployment at an experience-rated rate on the state wage base. The combined federal load on a $65,000 salary is about $5,015 per year before SUTA.
Four taxes, four rates, four wage bases, and they change on different schedules. This page collects every 2026 employer payroll tax rate and wage base in one table, with the worked math for common salary levels so you can see exactly where each tax starts and stops.
| Tax | Employer rate | 2026 wage base | Max per worker |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | $184,500 | $11,439.00 |
| Medicare (HI) | 1.45% | No limit | No maximum |
| FUTA (federal unemployment) | 0.6% | First $7,000 | $42.00 |
| SUTA (state unemployment) | Varies by state | Varies by state | Varies |
Social Security figures from the Social Security Administration. FUTA 0.6% is the net rate after the 5.4% timely-payment credit against the 6.0% statutory rate. SUTA is set by each state.
The Social Security wage base for 2026 is $184,500, up $8,400 from 2025. Both you and the employee pay 6.2 percent on wages up to that amount, so the maximum employer cost per worker is $11,439 for the year. Once a worker's year-to-date wages cross $184,500, you stop withholding and stop paying the employer share on the excess. The base applies per worker per employer: if someone works two jobs, each employer applies the base separately.
For most workers the base never binds. Someone earning $65,000 costs you $4,030 in Social Security tax for the year, every year, with no cutoff. The base matters for high earners and for budgeting: a worker at $200,000 costs you $11,439 in Social Security, exactly the same as a worker at $184,500, while Medicare keeps accruing on every dollar.
Medicare has no wage base, which makes it the simplest and the most relentless of the four taxes: 1.45 percent of every wage dollar, matched by the employee's 1.45 percent. On a $65,000 salary that is $942.50 per year from you. On a $500,000 salary it is $7,250.
The wrinkle is the Additional Medicare Tax: 0.9 percent on wages over $200,000 ($250,000 for joint filers). That 0.9 percent is paid entirely by the employee, but you are required to start withholding it once an individual's wages cross $200,000, with no matching employer payment. Payroll systems handle this automatically, but it surprises first-time employers of high earners.
Federal unemployment tax is the smallest of the four by design. The statutory rate is 6.0 percent on the first $7,000 of each worker's wages, but employers who pay their state unemployment taxes on time get a 5.4 percent credit, leaving a net federal rate of 0.6 percent. That is $42 per employee per year, usually paid in one quarterly deposit.
The credit has a trap: states that borrow from the federal unemployment fund and do not repay can lose part of the credit, raising the net FUTA rate for employers in those states. These credit-reduction states change year to year, so check the current list when you file Form 940. A credit reduction of 0.3 percent adds $21 per worker, small per head but real across a large workforce.
State unemployment insurance is where uniformity ends. Every state sets its own taxable wage base and its own rate schedule, and your specific rate is experience-rated: employers with a history of layoffs pay more, stable employers pay less. New employers get a standard new-employer rate that differs by state and industry. Wage bases range from $7,000 in states that match the federal floor to well over $50,000 in states like Washington and Hawaii.
Because SUTA is the only one of the four you can influence, it deserves attention. Contest improper unemployment claims, since each paid claim feeds your experience rating. File and pay on time, since late payments can cost you both state penalties and the federal FUTA credit. And when you get your annual rate notice, verify the math: state agencies make errors, and the notice is your only window to appeal.
Employers pay 6.2 percent of each worker's wages up to the 2026 wage base of $184,500, matching the employee's 6.2 percent. The maximum employer Social Security tax per worker is $11,439.
No. The 1.45 percent employer Medicare tax applies to all wages with no cap. The additional 0.9 percent Medicare tax on wages over $200,000 is employee-only.
The statutory FUTA rate is 6.0 percent, but employers receive a 5.4 percent credit for paying state unemployment taxes on time, leaving a net federal rate of 0.6 percent on the first $7,000 of each worker's wages.
Your state assigns a rate based on your industry, your claims history (experience rating), and the health of the state's unemployment fund. New employers receive a standard new-employer rate. Check your annual rate notice from your state workforce agency.
← Back to the employer payroll tax calculator 2026
Figures: 2026. Sources: the Social Security Administration (2026 contribution and benefit base), the Internal Revenue Service (FUTA, deposit rules), and the US Department of Labor. This page is for planning only and is not financial, tax, or legal advice. Verify with the cited source or a qualified professional.