Medicare tax on a paycheck
Medicare tax is 1.45% of all wages, with no yearly cap, and the employer pays a matching 1.45%. Once an employee's wages for the year pass $200,000, the employer must also withhold 0.9% Additional Medicare Tax on the excess, starting in that pay period; there's no employer share of the additional 0.9%.
See Medicare with social security and federal income tax for any paycheck.
Work out Medicare on a paycheckRates for 2026
| Employee | Employer | Applies to | |
|---|---|---|---|
| Medicare | 1.45% | 1.45% | All wages, no cap |
| Additional Medicare Tax | 0.9% | None | Wages over $200,000 in the year |
Worked examples
- $2,000 paycheck: 1.45% = $29.00 withheld, and the employer pays another $29.00.
- $1,000 paycheck with $250,000 already paid this year: $14.50 plus 0.9% of $1,000, $9.00, so $23.50.
- $3,000 paycheck that takes the year from $199,000 to $202,000: $43.50 plus 0.9% of the $2,000 over $200,000, $18.00, so $61.50.
The employer withholds the 0.9% based on wages it pays, whatever the employee's filing status. The employee settles any difference on their tax return.
Questions
Is there a limit on Medicare tax?
No. Unlike social security, Medicare applies to all wages, and above $200,000 in a year the rate withheld rises by 0.9%.
Does a 401(k) lower Medicare tax?
No. Elective 401(k) deferrals are still subject to social security and Medicare, though they generally lower federal income tax withholding.
Sources
Official sources checked September 25, 2026. This guide explains how pay documents work; it is not tax or legal advice.