Qualifying
What is OASDI tax?
OASDI tax — Old-Age, Survivors, and Disability Insurance tax — is the official name for the Social Security tax withheld from your paycheck, funding Social Security retirement, survivor, and disability benefits. For 2026, the OASDI rate is 6.2% on wages up to $184,500, split evenly between employee and employer (self-employed workers pay both halves, 12.4% total, via SECA tax).
The full picture
OASDI stands for Old-Age, Survivors, and Disability Insurance — it's the formal program name for what almost everyone just calls "Social Security." If you've ever looked at a pay stub and seen a line item labeled "OASDI" and wondered what it is, that's the answer: it's your Social Security withholding. It's a separate withholding line from federal income tax and from Medicare tax (which shows up as a distinct line, usually labeled FICA-Med or just Medicare).
2026 OASDI rate and wage base
- Rate: 6.2% of wages, withheld from the employee, plus a matching 6.2% paid by the employer (12.4% combined).
- 2026 wage base: $184,500 — up from $176,100 in 2025. Only earnings up to this amount are subject to OASDI tax in a calendar year.
- Maximum OASDI tax per person in 2026: $11,439 (6.2% × $184,500), paid by the employee, with the employer paying a matching $11,439.
- Self-employed workers pay both halves — 12.4% total — via the Self-Employment Contributions Act (SECA) tax, though half of that is deductible as a business expense on your federal return.
Why OASDI withholding sometimes stops mid-year
If your annual wages exceed $184,500 in 2026, your employer stops withholding OASDI tax once you hit that cap — there's no OASDI tax on wages above the wage base. This is why a high earner's take-home pay can noticeably jump in the last few months of the year: the 6.2% Social Security bite disappears, while the 1.45% Medicare tax (which has no wage cap, and actually adds an extra 0.9% above $200,000 single / $250,000 married filing jointly) keeps applying to every dollar.
Worked example
A worker earning $220,000 in 2026 pays 6.2% OASDI tax only on the first $184,500 of wages — a maximum of $11,439 — even though their full salary is taxed for Medicare (1.45% on the full amount, plus the 0.9% Additional Medicare Tax on the amount over $200,000). If they change jobs mid-year and a new employer starts OASDI withholding from zero, they can end up over-withheld across two employers combined — that excess is refundable when they file their federal tax return.
Sourced
- The Social Security Administration set the 2026 OASDI taxable wage base at $184,500, an increase from $176,100 in 2025. — Social Security Administration — 2026 wage base announcement
- The OASDI tax rate is 6.2% for employees and 6.2% for employers (12.4% combined); the self-employed rate under SECA is 12.4%. — Social Security Administration — contribution and benefit base rules
Key takeaways
- OASDI = Old-Age, Survivors, and Disability Insurance — the formal name for Social Security tax.
- 2026 rate: 6.2% employee + 6.2% employer, up to the $184,500 wage base.
- Maximum OASDI tax owed by any one employee in 2026 is $11,439.
- Self-employed workers pay the full 12.4% via SECA tax, but can deduct half as a business expense.
- If you changed employers mid-year and both withheld OASDI from zero, check for excess withholding when you file.
Frequently asked questions
Is OASDI the same as Social Security tax?
Yes. OASDI is the formal program name; "Social Security tax" and "OASDI tax" refer to the same 6.2% payroll withholding.
Is OASDI tax the same as Medicare tax?
No — they're separate line items. OASDI is 6.2% and capped at the annual wage base ($184,500 in 2026). Medicare tax is 1.45%, applies to all wages with no cap, and includes an extra 0.9% surtax above $200,000 (single) / $250,000 (married filing jointly).
Can I get OASDI tax back if I overpaid?
If you worked for more than one employer in the same year and your combined wages exceeded the wage base, each employer withholds up to the cap independently, which can result in you paying more than the annual maximum in total. That excess is credited back to you as part of your federal income tax return.
Published 2026-08-17 · Updated 2026-08-17 · https://clearvaluelending.com/answers/what-is-oasdi-tax