For informational purposes only. Not tax advice. Consult a qualified tax professional.
Medicare Tax Rate 2026
Updated 30 March 2026
Every dollar you earn is subject to Medicare tax. The standard rate is 1.45% for employees (2.9% for self-employed), with an additional 0.9% surtax on high earners. Unlike Social Security, there is no wage base cap.
1.45%
Employee Rate
On all wages, no cap
2.9%
Self-Employed Rate
Both shares combined
+0.9%
Additional Tax
Over $200K (single)
2026 Medicare Tax Rates
All current Medicare tax rates at a glance. These rates have remained unchanged since the Additional Medicare Tax took effect in 2013.
| Category | Rate | Applies To |
|---|---|---|
| Employee share | 1.45% | All wages (no cap) |
| Employer share | 1.45% | All wages (no cap) |
| Combined (employee + employer) | 2.90% | All wages (no cap) |
| Self-employed | 2.90% | All SE income (no cap) |
| Additional Medicare Tax | 0.90% | Wages over threshold |
| Net Investment Income Tax | 3.80% | Investment income over threshold |
Additional Medicare Tax Thresholds
The 0.9% surtax applies to earned income above these amounts. These thresholds have not changed since 2013 and are not adjusted for inflation.
| Filing Status | Additional Medicare Tax (0.9%) | NIIT (3.8%) |
|---|---|---|
| Single | $200,000 | $200,000 |
| Married Filing Jointly | $250,000 | $250,000 |
| Married Filing Separately | $125,000 | $125,000 |
| Head of Household | $200,000 | $200,000 |
| Qualifying Surviving Spouse | $250,000 | $250,000 |
Employers must withhold Additional Medicare Tax on wages exceeding $200,000, regardless of filing status. Adjustments are made when filing your return.
Net Investment Income Tax (3.8%)
What It Is
The Net Investment Income Tax (NIIT) is a 3.8% tax on investment income for high earners. It applies to interest, dividends, capital gains, rental income, royalties, and passive business income. It does not apply to wages, self-employment income, Social Security benefits, or tax-exempt interest.
The 3.8% rate was designed to mirror the combined employee/employer Medicare rate (2.9%) plus the Additional Medicare Tax (0.9%), effectively ensuring that investment income is taxed at a similar level as earned income for Medicare purposes.
How It Is Calculated
The NIIT equals 3.8% of the lesser of: (1) your net investment income, or (2) the amount by which your modified adjusted gross income (MAGI) exceeds the threshold for your filing status ($200,000 single, $250,000 married filing jointly).
For example, a single filer with $240,000 in wages and $30,000 in dividends has a MAGI of $270,000. The MAGI exceeds the $200,000 threshold by $70,000. The NIIT applies to the lesser of $30,000 (investment income) or $70,000 (excess MAGI), which is $30,000. The NIIT owed is $30,000 x 3.8% = $1,140.
Report the NIIT on Form 8960 and pay it with your annual tax return. It is not withheld from paychecks.
Medicare Tax Calculator
Enter your gross income to calculate your total Medicare tax including the Additional Medicare Tax.
$2,175.00
Total Medicare Tax
1.45%
Effective Rate
$83.65
Per Paycheck (biweekly)
Tax Breakdown
Employee Medicare Tax (1.45%)
On all $150,000 of income
$2,175.00
Employer Medicare Tax (1.45%)
Paid by your employer, not deducted from your pay
$2,175.00
Additional Medicare Tax (0.9%)
On income over $200,000 (Single)
$0.00
Total Medicare Tax You Pay
$2,175.00
Based on 2026 IRS Medicare tax rates. The Additional Medicare Tax threshold is not indexed for inflation. Self-employed individuals pay both employee and employer shares. Consult a tax professional for personalized advice.
How Medicare Tax Appears on Your Paycheck
Example pay stub for a $120,000 salary paid biweekly (26 pay periods per year).
| Line Item | Amount |
|---|---|
| Gross Pay | $4,615.38 |
| Federal Income Tax | -$665.00 |
| Social Security Tax (6.2%) | -$286.15 |
| Medicare Tax (1.45%) | -$66.92 |
| Additional Medicare Tax (0.9%) | $0.00 |
| Net Pay | $3,597.31 |
When Does the Additional 0.9% Start?
Your employer begins withholding the extra 0.9% on the paycheck where your year-to-date wages cross $200,000. For a $250,000 salary, this happens around pay period 21 (late October). After that point, Medicare withholding jumps from 1.45% to 2.35% per paycheck for the rest of the year.