2026 tax guide

Medicare Tax (2026)

How to calculate employee Medicare tax, including the 0.9% Additional Medicare Tax threshold.

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.

Medicare Tax

Medicare wages use the same deduction treatment as Social Security wages, but Medicare has no wage cap.

Subtract Medicare-exempt payroll deductions from gross wages:

Medicare Wages = Total Gross Wages - Pre‑Tax Medical - Pre‑Tax FSA/HSA

Calculate the standard Medicare tax on all Medicare wages:

Base Medicare Tax = Medicare Wages × 1.45%

Calculate the extra Medicare tax on wages above the threshold:

Additional Medicare Tax = MAX(0, Medicare Wages - $250,000) × 0.9%

Add the base and additional Medicare taxes:

Total Medicare Tax = Base Medicare Tax + Additional Medicare Tax

Use this table to review the 2026 Medicare rates, threshold, and wage-cap rule:

2026 item	Value
Base employee rate	1.45%
Additional rate	0.9%
Additional Medicare threshold for annual tax calculation	$250,000
Wage cap	None

Medicare Tax (2026)

Medicare Tax

Official Sources

Tax Guides