Medicare tax is one of the two FICA payroll deductions that come out of every W-2 paycheck, and unlike Social Security it has no wage cap. Most workers only ever see the 1.45% line, but higher earners pay an extra 0.9% on wages above a filing-status threshold. This calculator takes your Box 5 Medicare wages and your filing status, then breaks the total into the employee base, the Additional Medicare Tax, the employer match, and the combined burden.
Because Medicare tax has no upper limit on earnings, every additional dollar you earn still costs you 1.45% — and once you cross the threshold, that marginal rate jumps to 2.35% from the employee side. Knowing the exact split helps you plan raises, side income, and quarterly estimated payments.
How to Use
- Enter your Annual Medicare Wages — for employees this is the figure in Box 5 of your W-2; for the self-employed it is your net earnings from Schedule SE. Box 5 includes most pre-tax retirement deferrals (traditional 401(k), 403(b)) but excludes certain other items, so it is always the correct starting point for Medicare math.
- Pick your Worker Type. Choose Employee if you receive a W-2; choose Self-Employed if you pay SECA tax on Schedule SE. Self-employed individuals pay both the employee and employer halves of Medicare (a combined 2.9% on net earnings) instead of 1.45% with an employer match.
- Pick your Filing Status from the dropdown. This sets the Additional Medicare Tax threshold:
- Single and Head of Household — $200,000
- Married Filing Jointly — $250,000
- Married Filing Separately — $125,000
- Read the result card. The engine first charges the base rate on every dollar of wages, then layers a 0.9% surtax on any wages above the threshold. For employees, the employer match line shows the extra 1.45% your employer pays on your behalf — it does not come out of your check, but it is part of the total Medicare funding cost. For the self-employed, that employer half is already folded into the 2.9% base.
- If you held two or more jobs during the year, add the Box 5 figures from all W-2s together before entering the number. The Additional Medicare Tax threshold is applied once to your combined wages, not per employer.
- Use the result to reconcile against Form 8959 when you file your 1040. If your employers did not withhold the full 0.9% (because each one only saw wages under $200,000), you will owe the difference with your return.
How Medicare Tax Is Calculated
There are two pieces to the modern Medicare levy, both created by the Affordable Care Act and still in force:
- Base Medicare tax — 1.45% employee + 1.45% employer. This applies to 100% of Medicare wages with no ceiling. It funds the Medicare Hospital Insurance (Part A) trust fund.
- Additional Medicare Tax — 0.9% employee only. Introduced in 2013, this surtax applies to wages above the threshold tied to your filing status. It is paid entirely by the employee; employers do not match it. Employers are required to begin withholding the 0.9% once they pay you more than $200,000 in a calendar year, regardless of your actual filing status.
The math is deliberately simple:
Employee base = wages × 0.0145 Additional = max(0, wages − threshold) × 0.009 Employee total = employee base + Additional Employer match = wages × 0.0145
On $200,000 of single filer wages, the base is $2,900, the additional is $0 (you hit the threshold exactly but do not exceed it), the employer match is another $2,900, and the combined Medicare tax flowing to the federal government is $5,800.
Examples
Example 1 — The $200,000 single employee. A software engineer earning exactly $200,000 sees $2,900 withheld for base Medicare across the year. Because wages are not above the $200,000 threshold, no 0.9% Additional Medicare Tax applies. The employer separately remits $2,900 on the employee's behalf, for a combined $5,800.
Example 2 — The high earner above the threshold. A specialist earning $1,000,000 as a single filer pays 1.45% on the full million ($14,500) plus 0.9% on the $800,000 above $200,000 ($7,200). The total employee Medicare bill is $21,700. The employer still matches only the 1.45% base — $14,500 — and does not contribute a dime toward the surtax. Combined Medicare tax is $36,200.
Example 3 — Married couple filing jointly. A dual-income household earns a combined $300,000. The MFJ threshold is $250,000, so the Additional Medicare Tax applies only to the $50,000 above the threshold: $450. Base Medicare on $300,000 is $4,350, making the employee total $4,800 and the combined (with employer match) $9,150. Note that if each spouse earned $150,000 at separate employers, neither employer would automatically withhold the 0.9% — the couple would reconcile the $450 on Form 8959 at tax time.
FAQ
What is the Medicare tax rate for 2026?
The base Medicare tax remains 1.45% withheld from the employee plus a 1.45% employer match on every dollar of wages, with no cap. High earners also pay an Additional Medicare Tax of 0.9% on wages above the filing-status threshold ($200,000 single/HOH, $250,000 MFJ, $125,000 MFS).
Is there a wage limit for Medicare tax?
No. Unlike Social Security tax (which stops once wages exceed the annual wage base), Medicare tax applies to 100% of your Medicare wages. Every additional dollar you earn is still subject to the 1.45% base rate, plus the 0.9% surtax once you cross the threshold.
Do employers match the Additional Medicare Tax?
No. The 0.9% Additional Medicare Tax is an employee-only surtax. Employers withhold it once an individual employee is paid more than $200,000 in the calendar year, but they do not contribute a matching amount. The 1.45% employer match applies only to the base Medicare tax.
What if I have two jobs and neither withholds the 0.9%?
That is common. Each employer withholds the 0.9% only after paying you more than $200,000 in that single job. If you split $300,000 across two employers at $150,000 each, neither will withhold the surtax. You reconcile the total Additional Medicare Tax owed on Form 8959 when you file your 1040 and may need to make an estimated tax payment to avoid an underpayment penalty.
Is Medicare tax the same as FICA?
No. FICA (Federal Insurance Contributions Act) combines two taxes: Social Security (6.2% employee + 6.2% employer, capped at the annual wage base) and Medicare (1.45% + 1.45%, uncapped). Self-employed workers pay the combined 15.3% through SE tax on Schedule SE, with an extra 0.9% on net earnings above the same thresholds.
Does a raise push me into the 0.9% bracket?
Only if your annual wages cross the filing-status threshold. Once you are over it, every additional dollar of wages costs you an extra 0.9% on top of the 1.45% base — a combined 2.35% marginal employee Medicare rate. This is on top of federal and state income tax, so the true marginal rate on a raise can be significantly higher than your bracket alone suggests.
Disclaimer
This Medicare tax calculator is provided for informational purposes only and does not constitute tax, legal, or financial advice. Figures are based on current IRS rates and thresholds (1.45% base, 0.9% Additional Medicare Tax) and on the filing status you select; thresholds and rates can change in future tax years. Self-employed individuals, workers with multiple employers, and people with non-wage Medicare income (such as from RRTA or railroad retirement) should consult Form 8959 and IRS Publication 15 or a qualified tax professional. Always confirm your actual withholding and any additional tax due with your employer's payroll office or a licensed tax preparer before filing.