What Is OASDI Tax? The OASDI Deduction on Your Paycheck Explained

What does OASDI stand for?

Old-Age, Survivors, and Disability Insurance. "Old-age" is the retirement benefit, "survivors" covers the spouse and children of a worker who dies, and "disability" is Social Security Disability Insurance (SSDI). The tax that funds these benefits is collected under the Federal Insurance Contributions Act, which is why payroll systems group it with Medicare as "FICA". For self-employed people the same tax is collected as self-employment tax.

So OASDI tax, Social Security tax and "FICA-SS" all mean the same deduction. Medicare, the other half of FICA, is officially Hospital Insurance (HI).

What is OASDI on my paycheck?

Payroll software labels it in different ways: OASDI, EE OASDI, Fed OASDI/EE, SOC SEC, SS or FICA-SS. "EE" means the employee share. Your employer's matching share is not deducted from your pay, so it normally does not appear on the stub, though some stubs list it as "ER OASDI" for information.

To check the amount, take gross pay, subtract pre-tax cafeteria-plan (Section 125) deductions such as health premiums, and multiply by 6.2%. Traditional 401(k) contributions do not reduce the OASDI base, which is why "Social Security wages" on a W-2 (box 3) is often higher than federal taxable wages (box 1).

2026 OASDI tax rate and wage limit

The OASDI rate is set by law and has not changed since 1990: 6.2% for employees, 6.2% for employers and 12.4% for the self-employed. What changes each year is the wage base, which the Social Security Administration raises in line with national average wages. Wages above it are not taxed for OASDI and do not count toward benefits.

Once your year-to-date OASDI wages from one employer reach the base, the deduction stops for the rest of the calendar year and restarts in January. The FICA calculator shows the exact paycheck where that happens for your salary.

OASDI vs Medicare

Both are FICA taxes withheld from every paycheck, but they fund different programs and follow different rules. The main practical difference is the cap: OASDI stops at the wage base, Medicare never does, and high earners pay an extra Medicare tax.

Is OASDI refundable?

Not in the usual sense. OASDI is not income tax withholding, so it is not part of the refund calculation on your return, and you cannot get it back because you earned little or owe no income tax. It is credited to your Social Security earnings record instead. There are three exceptions.

• Two or more employers: if their combined OASDI withholding exceeds $11,439.00 for 2026, claim the excess on Schedule 3 (Form 1040), line 11. It is added to your refund.
• One employer withheld too much: you cannot claim it on your return. Ask the employer to repay it; if they do not, file Form 843 with the IRS.
• Exempt workers: nonresident alien students on F-1, J-1 or M-1 visas are generally exempt for their first five calendar years in the US. If OASDI was withheld in error, ask the employer first, then file Form 843 with Form 8316.

What your OASDI tax buys

Each year of covered earnings earns up to four Social Security credits. In 2026 you receive one credit for each $1,890 of earnings, so $7,560 earns the maximum four. You need 40 credits to qualify for retirement benefits, and the benefit amount depends on your lifetime covered earnings, counted only up to each year's wage base.

That is why it matters that your employer reports the right Social Security wages on Form W-2. Check your earnings record in your my Social Security account once a year and report missing years promptly.

OASDI for the self-employed

Self-employed people pay both shares, 12.4%, through self-employment tax on Schedule SE. It applies to 92.35% of net profit, and wages from a job count toward the same $184,500 base first. Half of the total self-employment tax is deductible on Schedule 1.