OASDI Tax Explained: What It Is and How Much You Pay in 2026
A CPA-reviewed guide by Rachel Mitchell, CPA — updated for 2026 tax year
OASDI tax is 6.2% of your wages up to $184,500 in 2026. Learn what OASDI means, how it differs from FICA, and how to calculate your Social Security tax.
If you've ever stared at your pay stub and wondered what "OASDI" means, you're not alone. That 6.2% deduction showing up next to "Medicare" is one of the most misunderstood line items on American paychecks. In this guide, we'll break down exactly what OASDI tax is, how much it costs you, and why it matters for your retirement.
What Is OASDI Tax?
OASDI stands for Old-Age, Survivors, and Disability Insurance. It's the official government name for what most people simply call Social Security tax. Every time you get paid, 6.2% of your wages goes toward this program, which funds:
- Old-Age — Retirement benefits for workers aged 62 and older
- Survivors — Benefits for widows, widowers, and dependents of deceased workers
- Disability Insurance — Benefits for workers who become disabled and can't work
OASDI is part of FICA (Federal Insurance Contributions Act), which also includes Medicare tax at 1.45%. Together, FICA totals 7.65% of your paycheck.
How Much Is OASDI Tax in 2026?
The OASDI tax rate is 6.2% of your gross wages. However, there's an annual wage cap — you only pay OASDI on income up to a certain amount.
For 2026, the OASDI wage base is $184,500. This means:
- If you earn $75,000/year: You pay 6.2% × $75,000 = $4,650 in OASDI tax
- If you earn $184,500/year: You pay 6.2% × $184,500 = $11,439 in OASDI tax
- If you earn $300,000/year: You still only pay $11,439 — OASDI stops after $184,500
Your employer matches your 6.2% contribution, for a total of 12.4% sent to the Social Security Administration on your behalf.
OASDI vs FICA: What's the Difference?
This is a common source of confusion. Here's the simple breakdown:
| Tax | Rate | 2026 Wage Cap | What It Funds |
|---|---|---|---|
| OASDI (Social Security) | 6.2% | $184,500 | Retirement, survivors, disability |
| Medicare (HI) | 1.45% | No cap | Hospital insurance |
| FICA Total | 7.65% | $184,500 (SS portion only) | Both programs combined |
So OASDI is a subset of FICA. When someone says "FICA tax," they're referring to the combined 7.65% (OASDI + Medicare).
OASDI Tax for Self-Employed Workers
If you're self-employed, you pay both the employee AND employer portions of OASDI through self-employment tax (SE tax). Instead of 6.2%, you pay 12.4% — but you can deduct half of this on your tax return.
- Self-employed OASDI rate: 12.4% (up to $184,500 wage cap)
- Self-employed Medicare rate: 2.9% (no cap)
- Total SE tax: 15.3%
Use our self-employment tax calculator to see exactly how much SE tax you owe.
Additional Medicare Tax (Above $200,000)
While OASDI has a wage cap, Medicare does not. And if you earn over $200,000 (single) or $250,000 (married filing jointly), you'll pay an additional 0.9% Medicare surtax on earnings above that threshold. This surtax does not apply to OASDI.
How to Calculate OASDI Tax
The calculation is straightforward:
- Take your gross wages (before any deductions)
- Multiply by 6.2% (0.062)
- If your wages exceed $184,500, cap the calculation at $184,500
Example 1: $60,000 salary
- OASDI = $60,000 × 0.062 = $3,720/year ($310/month)
Example 2: $250,000 salary
- OASDI = $184,500 × 0.062 = $11,439/year (capped — the remaining $65,500 is not taxed for OASDI)
Our paycheck calculator handles this calculation automatically for all 50 states.
Does OASDI Affect My Tax Refund?
No — OASDI tax is withheld from each paycheck throughout the year and sent directly to the Social Security Administration. It does not affect your income tax refund directly. However, the half of SE tax that self-employed workers can deduct does reduce taxable income, which can increase your refund.
Will OASDI Run Out of Money?
The Social Security Trustees project that the OASDI trust funds will be depleted by 2035. After that, payroll taxes alone would cover about 80% of scheduled benefits. Congress is expected to address this before then, but the uncertainty is why many financial advisors recommend supplementing Social Security with 401(k) contributions and other retirement savings.
OASDI Tax History
The OASDI tax rate has been 6.2% since 1990. The wage cap, however, increases annually based on inflation:
| Year | OASDI Rate | Wage Cap |
|---|---|---|
| 2024 | 6.2% | $168,600 |
| 2025 | 6.2% | $176,100 |
| 2026 | 6.2% | $184,500 |
| 2027 (est.) | 6.2% | ~$193,000 |
Frequently Asked Questions
Is OASDI the same as Social Security tax? Yes. OASDI is the official name for Social Security tax. They are the same thing.
Can I opt out of paying OASDI? No. If you earn wages in the United States, OASDI tax is mandatory. There are very limited religious exemptions, but they require giving up all Social Security benefits.
Does OASDI count toward my tax return? OASDI is not income tax — it's a payroll tax. It doesn't appear on your Form 1040 as a deduction (except for self-employed workers who can deduct half of SE tax).
What happens if I overpay OASDI? If you work multiple jobs and your combined wages exceed $184,500, you may overpay OASDI. You can claim the excess as a credit on your tax return using Form 1040, Line 11.
Related Resources
- Paycheck Calculator — See your exact OASDI deduction
- How FICA Taxes Work — Complete FICA breakdown
- Self-Employment Tax Calculator — SE tax including OASDI
- 2026 Federal Tax Brackets — Income tax guide
Sources
- Social Security Administration — OASDI Tax Rates
- IRS — Publication 15 (Employer's Tax Guide)
- IRS — Form 1040-ES (Estimated Tax for Individuals)
- Social Security Trustees Report (2025)
