What is OASDI? OASDI (Old-Age, Survivors, and Disability Insurance) is the formal name for Social Security tax. Your employer withholds 6.2% OASDI from your gross wages until you hit the $184,500 wage base in 2026.
That 6.2% is your share only. Your employer pays a matching 6.2% separately. You never see that match on your stub. Labels like Fed OASDI/EE, SS Tax, and Social Security all mean the same 6.2% line. Medicare (1.45%) is separate FICA and has no wage cap.
See our FICA explained guide and pay stub decoder for the full paycheck picture. Or calculate your exact take-home pay.
You opened your pay stub and saw a line that says "OASDI," "Fed OASDI/EE," or something similar. You may have no idea what it is or why it takes money from your paycheck.
This guide explains what every OASDI label means. It covers the 2026 rate, what your contributions fund, and what happens at different salary levels. For the full paycheck math, use our free 2026 paycheck calculator.
What OASDI stands for - letter by letter
When you see OASDI on your stub, you are looking at Social Security tax. Here is what each letter means for your paycheck:
In everyday language, OASDI = Social Security. The IRS and SSA use the full acronym on legal documents and pay stubs. For you, the programs are the same thing.
Every dollar withheld as OASDI goes to the Social Security Trust Fund. That fund pays benefits to roughly 70 million Americans each month.
Every OASDI label on every payroll system decoded
Your employer's payroll software picks how this tax is labeled on your stub. All of these labels mean the same thing: 6.2% Social Security tax withheld from your wages.
/EE = Employee portion (comes out of your paycheck).
/ER = Employer portion (paid by your employer separately - never shown on your stub).
When you see "Fed OASDI/EE: -$202.69" on your stub, your employer is also paying a matching amount to the IRS. You never see the employer half on your pay stub. It is still real money spent on your behalf.
The 2026 OASDI rate and wage base
Your OASDI rate in 2026 is still 6.2%. Your employer matches another 6.2% separately. What changes each year is how much of your pay is subject to the tax.
| Detail | 2025 | 2026 | Change |
|---|---|---|---|
| Employee OASDI rate | 6.2% | 6.2% | No change |
| Employer OASDI rate | 6.2% | 6.2% | No change |
| Combined (both sides) | 12.4% | 12.4% | No change |
| Social Security wage base | $176,100 | $184,500 | +$8,400 |
| Maximum employee OASDI tax | $10,918.20 | $11,439.00 | +$520.80 |
The rate itself has not changed since 1990. It has been 6.2% for over three decades, set by federal statute. What changes every year is the wage base: the cap on wages subject to OASDI.
The SSA adjusts the wage base annually using the national average wage index. For 2026 it rose $8,400. Workers earning above $176,100 now pay OASDI on an extra $8,400 of wages. That adds $520.80 in Social Security tax for the year.
Wage base history - the trend that affects high earners
Where OASDI appears on your pay stub
Here's where OASDI sits on a typical pay stub. It appears alongside other deductions. Each line changes your gross pay in a specific way. For a full line-by-line walkthrough, see our how to read a pay stub guide.
Notice the 401(k) contribution ($250) and health insurance ($180) appear before OASDI. Those pre-tax deductions do not reduce your OASDI base. OASDI is calculated on the full $3,269.23 gross, not the reduced amount.
This is the most common FICA misconception. Our FICA taxes explained guide covers it in detail.
What your OASDI tax actually funds
Every OASDI dollar you pay goes to the Social Security Trust Fund. The money splits between the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund. Here's what each part of the acronym funds:
Social Security is not a personal savings account. Your contributions do not sit in a dedicated account with your name on it. Instead, today's workers fund today's retirees. Future workers will fund yours. This is called a pay-as-you-go system.
The CBO projects the OASI trust fund could be depleted by 2032. Without congressional action, benefits could be cut to roughly 72% of scheduled amounts. That is one reason not to rely on Social Security as your sole retirement income. See our Roth vs Traditional 401(k) 2026 guide for how to build tax-advantaged savings alongside Social Security.
How OASDI is calculated - paycheck examples at 5 salary levels
The math is simple: your gross wages x 6.2%, until you hit the $184,500 annual cap. Below is what that looks like per paycheck at five common salary levels:
| Annual salary | Pay frequency | Gross per check | OASDI per check | Annual OASDI | Hits cap? |
|---|---|---|---|---|---|
| $45,000 | Biweekly | $1,730.77 | $107.31 | $2,790 | No |
| $75,000 | Biweekly | $2,884.62 | $178.85 | $4,650 | No |
| $85,000 | Biweekly | $3,269.23 | $202.69 | $5,270 | No |
| $150,000 | Biweekly | $5,769.23 | $357.69 | $9,300 | No |
| $220,000 | Biweekly | $8,461.54 | $524.62 (checks 1-21) | $11,439 max | Yes - stops check 22 |
Enter your salary, state, and pay frequency. Our calculator shows your OASDI, Medicare, federal income tax, and state tax line by line, exactly as they appear on your stub.
Why OASDI disappears mid-year - and reappears every January
This surprises many people the first time it happens. You open your paycheck in October or November and notice OASDI is suddenly $0. Your take-home jumped by over $500. You did not change anything. What happened?
You hit the $184,500 wage base cap. Once your year-to-date wages with a single employer cross that number, your employer is legally required to stop withholding Social Security tax. Medicare (1.45%) keeps going. There is no cap on Medicare. OASDI does stop.
| Annual salary | Approximate month OASDI stops | Monthly take-home boost |
|---|---|---|
| $185,000 | Late December (barely hits) | ~$10 |
| $200,000 | Mid-November | ~$925/month while stopped |
| $220,000 | Mid-October | ~$1,049/month while stopped |
| $300,000 | Late July | ~$1,140/month while stopped (5 months) |
| $500,000+ | Late April | ~$1,140/month while stopped (8 months) |
The wage base resets to zero on January 1. Your first paycheck of the new year has full OASDI withholding again. That is why high earners often notice a smaller January paycheck compared to November or December. This is Reason #1 in our why your paycheck went down guide. It is the most common January paycheck surprise.
The multiple-employer overpayment problem
Each employer withholds OASDI independently. Say you work two jobs and earn $100,000 at each. Each employer withholds 6.2% on their $100,000. Combined, that is $12,400. But your wage base cap is $184,500 per person, not per employer.
The excess Social Security tax you paid:
Claim this as a credit on Schedule 3, Line 11 of your Form 1040. It reduces your tax bill dollar for dollar. Your employers cannot coordinate to prevent this. Each is required to withhold independently.
OASDI vs Medicare: what's the difference?
Both OASDI and Medicare are part of FICA. They work differently and fund different programs. Confusing them is common. This table shows what you see on your stub:
| Feature | OASDI (Social Security) | Medicare (HI) |
|---|---|---|
| Employee rate | 6.2% | 1.45% |
| Employer match | Yes - 6.2% | Yes - 1.45% |
| 2026 wage cap | $184,500. Stops when your YTD wages exceed this. | No cap. Applies to all your wages. |
| High-earner surtax | None | +0.9% on wages above $200k (single) |
| Pay stub labels | OASDI, Fed OASDI/EE, SS Tax | Medicare, Fed Med/EE, HI |
| W-2 box | Box 3 (wages) + Box 4 (withheld) | Box 5 (wages) + Box 6 (withheld) |
| What it funds | Retirement, survivor, disability | Hospital insurance (Part A) for 65+ |
Does your 401(k) contribution reduce OASDI?
No. This is one of the most misunderstood rules on your pay stub.
Traditional 401(k) contributions are pre-tax. They reduce your federal income tax base. They do not reduce the wages subject to OASDI or Medicare. The order of operations matters:
| Deduction type | Reduces federal income tax? | Reduces OASDI/Medicare base? |
|---|---|---|
| Traditional 401(k) | Yes | No |
| HSA contribution | Yes | No |
| Health insurance premium (Section 125) | Yes | No |
| Roth 401(k) | No | No |
| OASDI base | Always = gross wages. No deductions reduce it. | |
On an $85,000 salary, even if you max your 401(k) at $24,500, your OASDI is still calculated on the full $85,000 gross. It is not based on the $60,500 left after the 401(k). You pay $5,270 in OASDI regardless of your retirement contributions.
💰Self-employed: how OASDI works for you
If you are self-employed, you pay OASDI differently. Freelancers, sole proprietors, LLC members, and 1099 workers pay both halves through self-employment (SE) tax on Schedule SE:
| Component | W-2 employee | Self-employed (SE tax) |
|---|---|---|
| OASDI employee share | 6.2% (withheld) | 6.2% (you pay) |
| OASDI employer share | 6.2% (employer pays) | 6.2% (you pay this too) |
| Total OASDI rate | 12.4% combined | 12.4% - all on you |
| Wage base | $184,500 | $184,500 (on 92.35% of net income) |
| Tax relief | Employer handles employer share | Deduct 50% of SE tax from gross income (reduces AGI) |
The 92.35% multiplier exists because W-2 employees do not pay income tax on their employer's share. The 50% deduction is the IRS way of making self-employed workers pay equivalent effective rates to W-2 employees.
At $120,000 net profit, a self-employed person pays $16,956 in total SE tax. They deduct $8,478 from gross income. That saves roughly $1,865 in income tax at the 22% bracket.
Your full pay stub decoded - every FICA-related label
| Pay stub label | What it is | 2026 rate | Has a cap? |
|---|---|---|---|
| OASDI / Fed OASDI/EE / SS Tax / Social Security | Social Security - employee share | 6.2% | Yes - $184,500 |
| Medicare / Fed Med/EE / HI / Med Tax | Medicare - employee share | 1.45% | No cap |
| Additional Medicare / Addl Med EE | Additional Medicare surtax - high earners only | 0.9% | No cap (triggers at $200k) |
| Federal Income Tax / FIT / Fed Tax | Federal income tax - controlled by your W-4 | Varies (10%-37%) | No |
| State Income Tax / SIT | State income tax | 0% - 13.3% | Varies by state |
| OASDI/ER / SS-ER (not on your stub) | Employer Social Security match - employer records only | 6.2% | Yes - $184,500 |
Related guides
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Calculate my paycheck ->Sources & methodology
All rates and wage base figures sourced directly from IRS and SSA publications. This article is for informational purposes only and does not constitute tax or financial advice.
- IRS Topic No. 751: Social Security and Medicare Withholding Rates (2026). irs.gov/taxtopics/tc751
- Social Security Administration: Contribution and Benefit Base 2026 - $184,500. ssa.gov/oact/cola/cbb.html
- IRS Publication 15 (Circular E) - Employer's Tax Guide 2026. irs.gov/pub/irs-pdf/p15.pdf
- SSA: How Work Credits Are Earned (2026 - $1,890 per credit). ssa.gov
- SSA: Maximum Social Security Retirement Benefit 2026 - $4,152/month. ssa.gov
- IRS: Schedule 3 - Additional Credits and Payments (excess Social Security tax credit). irs.gov
Frequently asked questions
What is OASDI?
What does Fed OASDI/EE mean on my pay stub?
What is the OASDI tax rate for 2026?
Why did OASDI stop on my paycheck?
What is the difference between OASDI, Social Security, and FICA?
Does OASDI come out before or after my 401(k) contribution?
Our editorial and methodology standards explain how we source IRS data, verify formulas, and update guides each tax year. Read our methodology.