Medicare Tax Calculator 2025

Calculate Medicare tax (1.45%) and additional Medicare tax (0.9%) with the latest 2025 income thresholds for employees, employers, and self-employed individuals.

Calculate Medicare Tax View Medicare Rates

Medicare Tax Calculator

Enter your income and filing information to calculate Medicare taxes

Medicare Tax Rates & Thresholds (2025)

Standard Medicare Tax

Employee Rate
1.45%

Deducted from employee wages

Employer Rate
1.45%

Paid by employer (matching)

Combined Rate
2.9%

Total Medicare contribution

Wage Base Limit
No Limit

All wages subject to Medicare tax

Unlike Social Security, Medicare tax applies to all income

Additional Medicare Tax

Additional Rate
0.9%

Employee only (no employer match)

Total Employee Rate
2.35%

1.45% + 0.9% on high income

Employer Rate
1.45%

No additional tax for employers

2025 Income Thresholds
Single $200,000
Married Filing Jointly $250,000
Married Filing Separately $125,000
Head of Household $200,000

Self-Employment Medicare

SE Medicare Rate
2.9%

On net self-employment earnings

Additional SE Medicare
0.9%

On earnings over threshold

Total SE Rate
3.8%

2.9% + 0.9% on high earnings

SE Tax Adjustment
92.35%

Net earnings × 92.35% for Medicare calculation

50% of SE Medicare tax is deductible

Medicare Tax Planning

Withholding Strategy
Plan Ahead

Additional Medicare tax not automatically withheld

Estimated Payments
Quarterly

May need quarterly payments to avoid penalties

Form 8959
Required

File with tax return for additional Medicare tax

Tax Planning Tips
Optimize

Consider timing of income and deductions

Consult tax professional for high-income situations

Medicare Tax Examples (2025)

Standard Employee

Annual Salary: $75,000

Employment Type: W-2 Employee

Filing Status: Single

Medicare Tax Breakdown
Employee Medicare Tax (1.45%) $75,000 × 1.45% = $1,088
Additional Medicare Tax $0 (under $200,000)
Employer Medicare Tax (1.45%) $75,000 × 1.45% = $1,088
Total Employee Medicare $1,088
Employer Match $1,088

High Earner Employee

Annual Salary: $300,000

Employment Type: W-2 Employee

Filing Status: Single

Medicare Tax Breakdown
Standard Medicare Tax (1.45%) $300,000 × 1.45% = $4,350
Additional Medicare Tax (0.9%) $100,000 × 0.9% = $900
Employer Medicare Tax (1.45%) $300,000 × 1.45% = $4,350
Total Employee Medicare $5,250
Employer Medicare $4,350

Self-Employed

Net Earnings: $150,000

Employment Type: Self-Employed

Filing Status: Single

SE Medicare Tax Breakdown
SE Tax Adjustment $150,000 × 92.35% = $138,525
SE Medicare Tax (2.9%) $138,525 × 2.9% = $4,017
Additional Medicare Tax $0 (under $200,000)
Total SE Medicare Tax $4,017
Deductible Portion $2,009

Married High Earners

Combined Income: $400,000

Filing Status: Married Filing Jointly

Spouse 1: $250,000, Spouse 2: $150,000

Combined Medicare Tax
Standard Medicare (1.45% each) $400,000 × 1.45% = $5,800
Additional Medicare (0.9%) $150,000 × 0.9% = $1,350
Employer Medicare (1.45% each) $400,000 × 1.45% = $5,800
Total Employee Medicare $7,150
Employer Medicare $5,800

Frequently Asked Questions About Medicare Tax

Medicare tax is 1.45% of wages that funds Medicare health insurance for Americans 65 and older, plus certain disabled individuals. Both employees and employers pay this tax, totaling 2.9% of wages going to Medicare.

You pay an additional 0.9% Medicare tax on wages over $200,000 (single) or $250,000 (married filing jointly) in 2025. This additional tax is paid only by the employee - employers don't match it.

No, unlike Social Security tax, Medicare tax applies to all wages with no cap. You pay 1.45% on every dollar earned, plus 0.9% additional tax on high income.

Self-employed individuals pay 2.9% Medicare tax on net earnings (both employee and employer portions). They can deduct half of this as a business expense. Additional 0.9% applies to high earners.

Important Medicare Tax Information

Medicare tax funds the Medicare program that provides health insurance for Americans 65 and older. The standard Medicare tax rate is 1.45% for both employees and employers (2.9% total). An additional 0.9% Medicare tax applies to high earners above income thresholds, paid only by the employee with no employer match. Self-employed individuals pay both portions (2.9% total) but can deduct half as a business expense. This calculator provides estimates based on 2025 rates and should not be considered tax advice.