Educational use only. This guide is for
general educational purposes and is not financial, tax, legal, or accounting advice. Tax
rules can change and individual facts matter. Verify the information with official
sources and a qualified professional before making tax or financial decisions.
Calculation
Medicare wages use the same deduction treatment as Social Security wages in this guide, but Medicare has no wage cap.
Medicare wages = total gross wages - pre-tax medical - pre-tax FSA -
pre-tax HSA
Base Medicare tax = Medicare wages × 1.45%
Additional Medicare tax = max(0, Medicare wages - $250,000) × 0.9%
Total Medicare tax = base Medicare tax + Additional Medicare tax
Base Medicare tax = Medicare wages × 1.45%
Additional Medicare tax = max(0, Medicare wages - $250,000) × 0.9%
Total Medicare tax = base Medicare tax + Additional Medicare tax
| 2025 item | Value |
|---|---|
| Base employee rate | 1.45% |
| Additional rate | 0.9% |
| Additional Medicare threshold for annual tax calculation | $250,000 |
| Wage cap | None |