What Is OASDI Tax? The 6.2% on Your Paycheck, Explained
OASDI is the Social Security tax on your pay stub: 6.2% of wages up to $184,500 in 2026. What it funds, when it stops, and how to get excess OASDI back.
OASDI is the Social Security tax on your paycheck. The letters stand for Old-Age, Survivors, and Disability Insurance, the formal name of the Social Security program, and the line on your pay stub is your share of funding it: 6.2% of your Social Security wages, up to $184,500 in 2026. Your employer pays a matching 6.2% that never appears in your deductions. Once your year-to-date wages reach the cap, the line drops to zero until January.
Most explanations stop there. The parts that actually trip people up are the ones in between: why the OASDI line is calculated on a different wage figure than your income tax, why it sometimes vanishes in the fall, and why two jobs can make you overpay. This guide covers all three, with worked math you can check against your own stub.
OASDI at a Glance (2026)
| Item | 2026 figure | Source |
|---|---|---|
| Employee rate | 6.2% | SSA |
| Employer rate | 6.2% (matching) | SSA |
| Self-employed rate | 12.4% | SSA |
| Taxable maximum (wage base) | $184,500 | SSA 2026 COLA fact sheet |
| Maximum employee OASDI tax | $11,439.00 | 6.2% x $184,500 |
| Earnings for one work credit | $1,890 | SSA |
The wage base rises most years with national average wages. For comparison, it was $176,100 in 2025, so anyone earning more than that pays a bit more OASDI in 2026.
Why Your Pay Stub Calls It OASDI (or Something Else)
There is no required label. Payroll systems name this line however their developers chose, so the same 6.2% shows up as any of these:
| What your stub says | What it means |
|---|---|
| OASDI, OASDI EE | Social Security tax, employee share |
| SS, Soc Sec, SS Tax | Same thing |
| FICA-SS, FICA OASDI | Same thing, flagged as part of FICA |
| OASDI ER, SS ER | Employer's matching share (informational only) |
| FICA (one combined line) | Social Security plus Medicare together, 7.65% |
If your stub has a single "FICA" line, divide it by your Social Security wages: 7.65% means Social Security and Medicare are combined. If you see 6.2%, it's OASDI alone. Our pay stub abbreviations glossary covers the rest of the codes that sit next to it.
You can see where OASDI sits on a full stub in the labeled diagram below. It's in the taxes block (number 6), between federal income tax and Medicare.
| 4Earnings | Hrs | Rate | Current | 9YTD |
|---|---|---|---|---|
| Regular | 80.00 | 28.50 | 2,280.00 | 43,320.00 |
| Overtime | 4.00 | 42.75 | 171.00 | 3,249.00 |
| Gross pay | 2,451.00 | 46,569.00 |
| 5Pre-tax deductions | Current | YTD |
|---|---|---|
| 401(k) 5% | 122.55 | 2,328.45 |
| Medical (Sec. 125) | 85.00 | 1,615.00 |
| 10Leave | Accrued | Used | Balance |
|---|---|---|---|
| PTO (hrs) | 87.40 | 40.00 | 47.40 |
| Sick (hrs) | 29.30 | 8.00 | 21.30 |
| 6Taxes | Current | YTD |
|---|---|---|
| Federal income tax | 185.37 | 3,522.03 |
| Social Security (OASDI) | 146.69 | 2,787.11 |
| Medicare | 34.31 | 651.89 |
| CA state income tax | 60.85 | 1,156.15 |
| CA SDI | 30.76 | 584.44 |
| 7Post-tax deductions | Current | YTD |
|---|---|---|
| Union dues | 25.00 | 475.00 |
- 1Employer information. Company name and address. Some states also require the employer FEIN or legal entity name.
- 2Employee information. Your name, employee ID, and usually only the last four digits of your SSN.
- 3Pay period and pay date. The dates you worked versus the date you were paid. They are rarely the same.
- 4Earnings. Each pay type on its own line: hours, rate, this period, and year to date.
- 5Pre-tax deductions. Taken out before income tax is figured, which lowers your taxable wages.
- 6Taxes. Federal income tax, Social Security (OASDI), Medicare, and any state or local taxes.
- 7Post-tax deductions. Taken out after taxes: Roth 401(k), union dues, garnishments.
- 8Net pay. What actually lands in your bank account.
- 9Year-to-date (YTD) column. Running totals since January 1. Lenders and landlords read this column first.
- 10Leave balances. PTO and sick hours accrued, used, and remaining.
Sample pay stub with illustrative figures: biweekly pay period 19 of 26 in 2026, single filer, California employee. Built with the MakeMyPaystub builder.
OASDI vs Medicare vs FICA
FICA is the umbrella. It's the Federal Insurance Contributions Act, the law that funds both Social Security and Medicare through payroll, according to the IRS's Topic 751. OASDI and Medicare are the two taxes inside it.
| OASDI (Social Security) | Medicare (HI) | |
|---|---|---|
| Employee rate | 6.2% | 1.45% |
| Employer rate | 6.2% | 1.45% |
| Wage cap | $184,500 (2026) | None |
| Extra tax for high earners | None | Additional 0.9% withheld on wages over $200,000 |
| What it funds | Retirement, survivors, disability benefits | Hospital insurance (Medicare Part A) |
The practical difference: OASDI stops at the wage base, Medicare never does. That's why a high earner's stub in November can show a Medicare deduction but a blank OASDI line.
The Detail Most Guides Miss: OASDI Uses Its Own Wage Figure
Your OASDI isn't 6.2% of gross pay. It's 6.2% of Social Security wages, which can differ from both your gross pay and your federal taxable wages. Two kinds of pre-tax deductions are treated differently:
- Traditional 401(k), 403(b), and 457 deferrals reduce your federal income tax wages but not your Social Security wages. Since 1984, these deferrals have been subject to FICA, as the IRS retirement plan FAQ explains.
- Section 125 cafeteria plan deductions (pre-tax health, dental, and vision premiums, health FSA, HSA through payroll) reduce both.
Take the sample stub above. Gross pay is $2,451.00. The employee puts $122.55 into a 401(k) and pays $85.00 in pre-tax medical premiums.
- Federal taxable wages: $2,451.00 minus $122.55 minus $85.00 = $2,243.45
- Social Security wages: $2,451.00 minus $85.00 = $2,366.00 (the 401(k) stays in)
- OASDI: $2,366.00 x 6.2% = $146.69
- Medicare: $2,366.00 x 1.45% = $34.31
If you multiply your gross pay by 6.2% and get a number that doesn't match your stub, this is almost always why. We break down which deductions avoid which taxes in our guide to pre-tax vs post-tax deductions.
Check Your OASDI in Two Minutes
- Find your gross pay for the period.
- Subtract Section 125 deductions (pre-tax medical, dental, vision, FSA, HSA through payroll). Don't subtract 401(k). The result is your Social Security wages. Some stubs print this figure directly, often labeled "SS wages" or "FICA wages."
- Multiply by 0.062. Compare with the OASDI line. A difference of a cent is rounding.
- Check the YTD column. Divide your OASDI year-to-date by 0.062. That's your Social Security wages so far this year. If it's at or near $184,500, expect the deduction to stop. Our explainer on what YTD means on a pay stub walks through the running totals.
Our free paycheck calculator runs the same math, along with federal and state withholding, if you'd rather plug in your numbers.
When OASDI Stops Mid-Year
The cap applies per employer, per calendar year. Once one employer has paid you $184,500 in Social Security wages in 2026, it stops withholding OASDI and stops paying its own matching 6.2%.
Worked example. Someone earning a $250,000 salary, paid biweekly, gets $9,615.38 per paycheck (assume no Section 125 deductions).
- After 19 paychecks: $182,692.31 in Social Security wages, $11,326.92 in OASDI withheld.
- Paycheck 20: only $1,807.69 of the remaining room is taxable, so OASDI is $112.08.
- Paychecks 21 through 26: $0.00 OASDI.
- Total for the year: $11,439.00, exactly the maximum.
With a first payday in early January, paycheck 20 lands in late September, and take-home pay rises by about $596 per check (6.2% of $9,615.38) for the rest of the year. It's a nice surprise in the fall, followed by a smaller check in January when OASDI restarts. Nothing is wrong in either case.
Two Jobs? You May Overpay, and Get It Back
Each employer applies the wage base on its own. Neither knows what the other paid you, so if your combined wages top $184,500, you can end up with more OASDI withheld than the annual maximum.
| Job A | Job B | Total | |
|---|---|---|---|
| Social Security wages | $150,000 | $60,000 | $210,000 |
| OASDI withheld (6.2%) | $9,300 | $3,720 | $13,020 |
| 2026 maximum | $11,439 | ||
| Excess | $1,581 |
You don't lose that $1,581. According to IRS Topic 608, if you had more than one employer and too much Social Security tax was withheld, you claim the excess as a credit against your income tax. It goes on Schedule 3 of Form 1040 (line 11 on recent versions, "Excess social security and tier 1 RRTA tax withheld"), and tax software usually calculates it automatically from your W-2s.
Two catches:
- The credit only works across different employers. If a single employer withheld more than $11,439, you can't claim it on your return. The IRS says that employer should adjust it for you, and if it won't, you file Form 843 with copies of your W-2s.
- Married couples are figured separately. Each spouse has their own wage base, so a couple can't combine wages to reach the cap.
Your employer's matching share isn't refunded to anyone. Each employer owes its 6.2% on the wages it paid, regardless of your other jobs.
OASDI on Your W-2
At year end, your OASDI shows up on Form W-2 in two boxes: Box 3 (Social Security wages) and Box 4 (Social Security tax withheld). Box 4 should equal Box 3 times 6.2%, and Box 3 should never exceed the wage base. Your final pay stub's YTD figures should match these boxes, give or take any year-end adjustments, which makes your last stub of the year a quick way to sanity-check a W-2 before you file.
Self-Employed? You Pay Both Halves
If you work for yourself, nobody withholds OASDI, but you still owe it, plus the employer's share. Self-employment tax, filed on Schedule SE, is:
- 12.4% for Social Security, on 92.35% of net self-employment earnings, up to the $184,500 wage base
- 2.9% for Medicare, with no cap
The 92.35% factor mirrors the fact that employees don't pay FICA on their employer's share. If you also have a W-2 job, your W-2 Social Security wages count toward the cap first. And you get to deduct half of your self-employment tax on Form 1040.
Example: $60,000 in net self-employment earnings. $60,000 x 92.35% = $55,410. Social Security portion: $55,410 x 12.4% = $6,870.84.
Contractors who document their own income often show this on a 1099 contractor pay stub as a set-aside line rather than a withholding, since no employer is remitting it. Our gig economy statistics report has more on how many Americans now carry this tax themselves.
Who Doesn't Pay OASDI
Most W-2 employees can't opt out. The exceptions are narrow and defined by law:
| Who | Why | Source |
|---|---|---|
| Members of qualifying religious groups | Approved exemption on Form 4029; group must have existed since 1950 and provide for its members | SSA |
| Students working for their own school | Student FICA exception: enrolled and regularly attending classes at the employing school | IRS |
| Certain nonresident aliens | F-1, J-1, M-1, Q-1 status, while still nonresident for tax purposes (typically the first 5 calendar years for students) | IRS |
| Some state and local government employees | Covered by a public retirement system and not under a Section 218 Social Security agreement | IRS |
Note that some of these groups still owe Medicare. For example, most state and local government employees hired after March 31, 1986 pay the 1.45% Medicare tax even when they're outside Social Security.
If you're in one of these groups and OASDI is being withheld anyway, that's an employer setup issue worth raising with payroll. Nonresident students whose employers wrongly withheld can request a refund through the employer first, then Form 843.
What Your OASDI Actually Buys
OASDI isn't a savings account, but it isn't a black hole either. It funds three types of benefits, as the name says:
- Old-age: retirement benefits, typically available from age 62 with reduced amounts, more at full retirement age
- Survivors: monthly benefits for eligible spouses, children, and dependent parents after a worker dies
- Disability: Social Security Disability Insurance for workers who can't work because of a severe, long-term condition
Paying OASDI also earns work credits. In 2026, you earn one credit for every $1,890 of covered earnings, up to four per year, according to the SSA. Most people need 40 credits, roughly 10 years of work, to qualify for retirement benefits. Your record lives at my Social Security, and it's worth checking it against your W-2s every few years, since a missing year of earnings is much easier to fix while you still have the pay stubs.
FAQ
What is OASDI on my paycheck?
OASDI stands for Old-Age, Survivors, and Disability Insurance, the official name of Social Security. The line is your Social Security tax: 6.2% of your Social Security wages, withheld by your employer, who pays a matching 6.2% on top. Some payroll systems label it SS, Soc Sec, or FICA-SS.
What is the OASDI tax rate for 2026?
6.2% for the employee and 6.2% for the employer, on wages up to $184,500. That caps the employee's 2026 OASDI tax at $11,439. Self-employed people pay both halves, 12.4%.
Is OASDI the same as FICA?
OASDI is one of the two parts of FICA. FICA covers Social Security (6.2%) and Medicare (1.45%), for a combined 7.65% employee rate.
Why did OASDI stop coming out of my paycheck?
You most likely reached the $184,500 wage base with that employer. Withholding stops for the rest of the calendar year and restarts in January. Medicare keeps coming out because it has no cap.
Can I get OASDI tax refunded?
Only if too much was withheld. Excess from two or more employers is a credit on Schedule 3 of Form 1040. Excess from a single employer should be corrected by that employer, or claimed on Form 843.
Who is exempt from OASDI tax?
Approved members of qualifying religious groups (Form 4029), students working for their own school, certain nonresident aliens in F-1, J-1, M-1, or Q-1 status, and some state and local government employees covered by a public retirement system.
Do pre-tax 401(k) contributions reduce OASDI tax?
No. They reduce federal income tax wages only. Section 125 deductions like pre-tax health premiums do reduce OASDI wages.
What does OASDI EE and OASDI ER mean?
EE is the employee share withheld from your pay. ER is the employer's matching share, sometimes printed for information.
What does OASDI tax pay for?
Social Security retirement, survivors, and disability benefits. It also earns work credits: one per $1,890 of 2026 earnings, up to four per year.
How do self-employed people pay OASDI?
Through self-employment tax: 12.4% on 92.35% of net earnings up to the wage base, plus 2.9% for Medicare, with half of the total deductible.
The Takeaway
OASDI is Social Security: 6.2% of your Social Security wages, matched by your employer, capped at $184,500 of wages in 2026. Remember that it's figured on a different wage number than your income tax (401(k) deferrals don't reduce it, Section 125 deductions do), that it legitimately stops when you hit the cap, and that a second job can push you over the annual maximum, which you claim back on your tax return.
For the rest of your stub, our hub guide on how to read a pay stub walks every section in order, and gross vs net pay shows how OASDI fits into the gap between what you earn and what you take home.
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