Medicare tax is the quieter half of FICA. It is smaller than Social Security at ordinary pay, it never stops at a wage base, and for high earners it has an extra slice that Social Security does not have. Because it is only 1.45 percent at first, readers often ignore it, until a late-year paycheck shows a slightly higher Medicare line than expected.
The calculator applies Medicare at 1.45 percent on all wages, plus additional Medicare above the threshold for your filing status.
The basic rate, and why there is no cap
Employees pay Medicare tax at 1.45 percent of all wages, with no annual wage base. Employers generally match that 1.45 percent. Unlike Social Security, which stops at $184,500 in 2026, Medicare continues on every dollar of wages, so a reader earning $300,000 pays Medicare on the full $300,000, which is $4,350 at the basic rate, while Social Security stops at $11,439.
Pre-tax deductions can reduce Medicare wages in the same way they reduce Social Security wages, because payroll defines Medicare wages from wages after those deductions. The federal standard deduction does not reduce Medicare wages, which is a common point of confusion when comparing a federal tax calculation with a FICA calculation.
The additional Medicare tax, and its thresholds
An additional Medicare tax of 0.9 percent applies to wages above $200,000 for single and head of household filers, $250,000 for married filing jointly filers, and $125,000 for married filing separately filers. That additional amount is employee only, with no employer match. It is calculated on wages above the threshold for the filing status, not on the whole salary, so a single filer earning $220,000 pays additional Medicare on $20,000, which is $180, not on $220,000.
Employers must start withholding additional Medicare once an employee's wages from that employer pass $200,000 in the year, regardless of filing status. That payroll rule can create a mismatch for a joint filer, whose threshold is $250,000: the employer may start withholding at $200,000, and any excess over the joint threshold is settled on the annual return. For a separate filer, whose threshold is $125,000, the opposite timing can occur, with withholding starting later than the threshold would suggest.
Two examples, at different pay levels
At $75,000 with no pre-tax deductions, Medicare is $1,087.50 for the year, 1.45 percent of $75,000, with no additional tax. At $260,000 as a joint filer, Medicare is $3,770 at the basic rate on the full amount, plus additional Medicare on $10,000 above the $250,000 joint threshold, which is $90, for a total of $3,860. At the same $260,000 as a single filer, additional Medicare applies to $60,000 above $200,000, which is $540, for a total of $4,310. Filing status therefore changes Medicare at high pay, even though the basic rate is the same for everyone.
What to look for on a stub
Check whether Medicare is close to 1.45 percent of year-to-date wages after pre-tax deductions. If it is noticeably higher, check whether wages have passed the additional Medicare threshold for your filing status, or whether your employer started additional withholding at $200,000. If Medicare disappears or drops sharply late in the year, that is unusual, because Medicare has no cap, and it is worth checking with payroll, unlike Social Security, where a late-year drop is expected at the wage base.
FAQs
What is the basic Medicare tax rate?
1.45 percent for employees, on all wages, with employers generally matching that amount.
When does additional Medicare tax start?
Above $200,000 single and head of household, $250,000 joint, and $125,000 separate, at 0.9 percent on wages above the threshold, employee only.
Does Medicare stop like Social Security?
No. Medicare has no wage base, so it continues on all wages through the year.