Quick Answer
The Medicare tax rate for 2026 is 1.45% for employees and 1.45% for employers (2.9% total). High earners pay an additional 0.9% Medicare surtax on income over $200,000 (single) or $250,000 (married filing jointly). Unlike Social Security, there's no wage limit on Medicare tax.
Best Answer
Sarah Chen, Payroll Tax Analyst
Best for typical employees who want to understand Medicare tax deductions from their paychecks
How much Medicare tax do you pay?
The Medicare tax rate for 2026 is 1.45% of your gross wages with no income limit. Your employer pays an additional 1.45%, making the total Medicare contribution 2.9% of your wages.
Unlike Social Security tax, which stops at $176,100, Medicare tax applies to every dollar you earn. If you make $60,000, you pay $870 in Medicare tax annually ($60,000 × 1.45% = $870), or about $33.46 per biweekly paycheck.
Medicare tax at different income levels
*The $300,000 earner pays an additional 0.9% Medicare surtax on income over $200,000.
Additional Medicare Tax for high earners
High earners pay an additional 0.9% Medicare tax on wages exceeding:
This brings their total Medicare tax rate to 2.35% (1.45% + 0.9%) on income above these thresholds. Important: Employers do NOT match the additional 0.9% — you pay this entirely on your own.
Example: Additional Medicare Tax calculation
Single earner making $250,000:
Your employer withholds the additional 0.9% once your year-to-date wages exceed $200,000, regardless of your filing status or spouse's income.
Key differences from Social Security tax
What you should do
If you're a high earner, consider making estimated tax payments if your withholding doesn't cover the additional Medicare tax. Married couples where both spouses work should be especially careful, as the $250,000 threshold applies to combined income but withholding is based on individual wages.
Use our paycheck calculator to see exactly how Medicare tax affects your take-home pay at different income levels.
Key takeaway: Medicare tax is 1.45% on all wages, plus an additional 0.9% for high earners above $200,000 (single) or $250,000 (married), with no wage limit.
*Sources: [IRS Publication 15](https://www.irs.gov/pub/irs-pdf/p15.pdf), [IRS Topic 751](https://www.irs.gov/taxtopics/tc751)*
Key Takeaway: Medicare tax is 1.45% on all wages, plus an additional 0.9% for high earners above $200,000 (single) or $250,000 (married), with no wage limit.
Medicare tax rates and amounts by income level for 2026
| Annual Salary | Medicare Tax (1.45%) | Additional Tax (0.9%) | Total Medicare Tax | Per Biweekly Paycheck |
|---|---|---|---|---|
| $40,000 | $580 | $0 | $580 | $22.31 |
| $80,000 | $1,160 | $0 | $1,160 | $44.62 |
| $150,000 | $2,175 | $0 | $2,175 | $83.65 |
| $200,000 | $2,900 | $0 | $2,900 | $111.54 |
| $250,000 | $3,625 | $450 | $4,075 | $156.73 |
| $300,000 | $4,350 | $900 | $5,250 | $201.92 |
More Perspectives
Sarah Chen, Payroll Tax Analyst
Perfect for new workers learning about Medicare tax for the first time
Medicare tax on your first paycheck
Medicare tax is the smaller of the two FICA taxes you'll see deducted from your paycheck (the other being Social Security). At 1.45%, it's much smaller than the 6.2% Social Security rate.
On your paycheck, you'll see:
What Medicare tax pays for
Medicare tax funds the Medicare program, which provides health insurance for people 65 and older, plus some younger people with disabilities. Unlike Social Security, you don't need to work a minimum number of years to qualify for Medicare — you're eligible at 65 if you or your spouse paid Medicare taxes for at least 10 years.
Real-world example for entry-level workers
$35,000 annual salary:
This might seem small, but it adds up over your career. Over 40 years of work, you and your employers will contribute over $40,000 to Medicare on your behalf.
Why there's no income limit
Unlike Social Security tax (which stops at $176,100), Medicare tax never stops. This means even if you become a high earner later in your career, you'll keep paying 1.45% on every dollar you make. The good news: you won't pay the additional 0.9% Medicare surtax unless you earn over $200,000.
Key takeaway: Medicare tax is just 1.45% of your paycheck — much smaller than Social Security tax and helps fund your future healthcare coverage.
Key Takeaway: Medicare tax is just 1.45% of your paycheck — much smaller than Social Security tax and helps fund your future healthcare coverage.
Sarah Chen, Payroll Tax Analyst
Essential for high earners who need to understand the Additional Medicare Tax
Additional Medicare Tax for high earners
As a high earner, you face a 0.9% Additional Medicare Tax on wages above $200,000 (single) or $250,000 (married filing jointly). This is ON TOP of the regular 1.45% Medicare tax, bringing your total Medicare tax to 2.35% on income above these thresholds.
Critical difference: Your employer does NOT match the additional 0.9%. You pay this entirely on your own.
Withholding complications
Your employer starts withholding the additional 0.9% once your year-to-date wages exceed $200,000, regardless of your filing status. This creates problems for married couples:
Scenario: You earn $180,000, spouse earns $120,000 (total: $300,000)
Strategic planning considerations
For single high earners: The withholding usually works correctly. Once you hit $200,000 in wages, expect to see an extra 0.9% deducted.
For married couples: Consider making estimated tax payments if your combined income exceeds $250,000 but neither spouse earns over $200,000 individually.
Cash flow impact at $300,000 salary:
Planning for next year
Unlike Social Security tax, which maxes out and gives you a break later in the year, Medicare tax continues at 2.35% on every dollar above $200,000. Factor this into your year-end bonus planning and estimated tax payments.
Key takeaway: High earners pay 2.35% total Medicare tax (1.45% + 0.9%) on income above $200,000 single or $250,000 married, with potential withholding gaps for married couples.
Key Takeaway: High earners pay 2.35% total Medicare tax (1.45% + 0.9%) on income above $200,000 single or $250,000 married, with potential withholding gaps for married couples.
Sources
- IRS Publication 15 — Employer's Tax Guide - Medicare tax rates and withholding
- IRS Topic 751 - Social Security and Medicare Withholding Rates — Official Medicare tax rates and Additional Medicare Tax information
Related Questions
Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.