2026 Employer Tax Calculator Tax Year 2026
Estimate your 2026 employer payroll tax burden per employee. This calculator models the employer's share of FICA (Social Security & Medicare), Federal Unemployment Tax (FUTA), and total employer tax liability. Based on IRS 2026 rates and wage bases.
2026 Employer Tax Overview
As an employer, you are responsible for paying several payroll taxes on behalf of your employees. These taxes are paid from your own funds and are separate from the amounts withheld from employee paychecks. The primary employer payroll taxes for 2026 are:
2026 Employer Payroll Tax Rates
The following rates apply to the employer's share of payroll taxes for 2026:
| Tax | Employer Rate | Wage Base | Notes |
|---|---|---|---|
| Social Security (OASDI) | 6.2% | $184,500 | Matches employee rate |
| Medicare (HI) | 1.45% | No limit | Matches employee rate |
| FUTA | 6.0% (net 0.6%) | $7,000 | 5.4% credit for state tax paid |
| Total FICA | 7.65% | , | Social Security + Medicare |
Source: IRS Publication (2026), Revenue Procedure 2025-32
Social Security (OASDI)
The Social Security tax rate for employers is 6.2% of wages up to the 2026 wage base of $184,500. This matches the employee's share, for a total combined rate of 12.4%. The wage base increased from $176,100 in 2025.
Medicare (HI)
The Medicare tax rate for employers is 1.45% of all wages with no wage base limit. This matches the employee's share, for a total combined rate of 2.9%. There is also an Additional Medicare Tax of 0.9% on wages above $200,000, but this is employee-only and not matched by the employer.
Federal Unemployment Tax (FUTA)
The standard FUTA tax rate is 6.0% on the first $7,000 of wages paid to each employee per year. Most employers receive a credit of up to 5.4% for paying state unemployment taxes on time, resulting in a net effective rate of 0.6%. The FUTA wage base of $7,000 has not changed since 1983.
State Unemployment Tax (SUTA)
State Unemployment Insurance (SUI) rates vary by state, industry, and employer experience rating. Rates typically range from 1.5% to 6.5% of taxable wages, with wage bases that vary by state. SUTA is not included in this calculator but is an important additional cost for employers.
How the Calculator Works
- Social Security Tax: 6.2% × annual wages (capped at $184,500 per employee).
- Medicare Tax: 1.45% × annual wages (no cap).
- FUTA Tax: 6.0% (or 0.6% effective) × first $7,000 of wages per employee.
- Total Employer Tax: Sum of all employer-paid taxes.
- Employee FICA: Optional display of employee's share (same rates as employer).
- Total Burden: Employer tax + employee FICA withholding (if shown).
Important Disclaimer
This calculator provides estimates for educational and planning purposes. It does not constitute official tax advice. Actual tax liability may vary based on your specific circumstances, including state unemployment insurance rates, workers' compensation premiums, local payroll taxes, and credit reductions. Always consult a qualified tax professional for accurate tax guidance.
❓ 2026 Employer Tax Calculator FAQ
What payroll taxes does an employer pay in 2026?
Employers pay the employer's share of Social Security (6.2% up to $184,500), Medicare (1.45% on all wages), and FUTA (6% on first $7,000, typically 0.6% net). Employers also withhold employee FICA and income taxes from paychecks.
What is the 2026 Social Security wage base?
The 2026 Social Security wage base is $184,500, up from $176,100 in 2025. Wages above this amount are not subject to Social Security tax.
Is there a wage base limit for Medicare tax?
No, Medicare tax applies to all wages with no upper limit. The employer rate is 1.45%.
What is the FUTA tax rate for 2026?
The standard FUTA rate is 6.0% on the first $7,000 of wages per employee. Most employers receive a 5.4% credit for paying state unemployment taxes, making the net rate 0.6%.
How much is the total employer FICA tax?
The total employer FICA tax is 7.65% of wages , 6.2% for Social Security (up to $184,500) plus 1.45% for Medicare (no cap).
Does the employer pay the Additional Medicare Tax?
No. The Additional Medicare Tax of 0.9% on wages over $200,000 is employee-only and is not matched by the employer.
What is the difference between FICA and FUTA?
FICA (Federal Insurance Contributions Act) funds Social Security and Medicare and is paid by both employers and employees. FUTA (Federal Unemployment Tax Act) funds federal unemployment benefits and is paid only by employers.
What is SUTA and why isn't it included?
SUTA (State Unemployment Tax Act) is state-level unemployment insurance tax that varies by state, industry, and claims history. Rates typically range from 1.5% to 6.5%. It is not included because rates differ widely by state.
How often do employers deposit payroll taxes?
Federal payroll tax deposits are due semi-weekly, monthly, or annually depending on the size of the employer, while returns are generally due quarterly (Form 941). FUTA is reported annually on Form 940.
Is this calculator free?
Yes, this calculator is completely free to use. No registration or personal data storage is required. All calculations are performed in your browser.