Medicare tax on your paycheck

How it works

Medicare tax has no wage base — every dollar of wages is taxed at 1.45%. Once your year-to-date wages cross $200,000, the employer must withhold an additional 0.9% Medicare tax (no employer match on the additional 0.9%).

Worked example

If your YTD wages are $190,000 and this paycheck is $20,000: Medicare base 1.45% × $20,000 = $290. Additional Medicare 0.9% on the $10,000 over $200,000 = $90. Total Medicare withheld this period = $380.

What to check

• Base Medicare = 1.45% × FICA-taxable wages.
• If YTD wages are over $200,000, expect a separate Additional Medicare line.
• Your actual Additional Medicare liability depends on your filing status and joint income — verify on your tax return.