Medicare tax rate for 2026: 1.45% of every dollar of wages

What is the Medicare tax rate in 2026?

The Medicare tax rate in 2026 is 1.45% of an employee's Medicare wages, and the employer pays a matching 1.45%, according to IRS Topic 751. Medicare tax is the hospital insurance (HI) part of FICA, the payroll tax that also funds Social Security. The rate is set in law, so it did not change for 2026 and is not adjusted for inflation.

Medicare tax is a flat percentage, not a bracketed tax. A cashier earning $30,000 and an executive earning $3 million pay the same 1.45% on each dollar, with one exception: wages above $200,000 in a calendar year carry an extra 0.9% employee-only charge, covered on our Additional Medicare Tax page.

Is there a limit on Medicare tax?

No. There is no maximum wage for Medicare tax, so every dollar of pay is taxed for as long as you work. That is the key difference from Social Security tax, which stops once wages reach the 2026 Social Security wage base of $184,500.

A Medicare cap did exist once. The Social Security Administration's history of taxable maximums shows that hospital insurance used the same cap as Social Security from 1966 through 1990, then separate caps of $125,000 in 1991, $130,200 in 1992 and $135,000 in 1993. Since 1994, all covered earnings have been subject to Medicare tax.

How much Medicare tax comes out of a paycheck?

Multiply the gross Medicare wages for the pay period by 1.45%. On a biweekly check of $3,000, Medicare withholding is $43.50. On a monthly salary of $9,500, it is $137.75. Payroll systems show this line as "Medicare" or "FICA-Med" on the pay stub.

The yearly totals below apply the 1.45% rate to the full salary and add the 0.9% Additional Medicare Tax only where wages from a single employer pass $200,000. For the Social Security half of the picture at the same salaries, see FICA tax explained.

The $300,000 row shows how the extra 0.9% works: it applies only to the $100,000 above $200,000, which adds $900. The employer's share stays at a flat 1.45% because employers never pay the additional tax.

Do employers match Medicare tax?

Yes. Employers pay 1.45% of each employee's Medicare wages from their own funds, on top of the 1.45% they withhold from the employee's pay. IRS Publication 15, the Employer's Tax Guide, requires the employer to deposit both halves and report them on Form 941 each quarter.

The match covers the regular 1.45% only. Employers withhold the 0.9% Additional Medicare Tax from the employee once wages pass $200,000 but add nothing of their own. The employer share is not shown on your W-2, but it is a real cost of employing you, which is one reason the self-employed rate is double.

What Medicare tax rate do self-employed people pay?

Self-employed people pay 2.9% Medicare tax, both halves, as part of the 15.3% self-employment tax figured on Schedule SE (IRS Topic 554). The tax applies to 92.35% of net self-employment earnings, and it is owed once those net earnings reach $400 for the year.

Worked example: a freelancer with $80,000 of net profit multiplies by 92.35% to get $73,880 of net earnings from self-employment. Medicare tax is 2.9% of that, or $2,142.52. Half of the total self-employment tax is deductible on Schedule 1. The full calculation, including the Social Security part, is on our self-employment tax rate page.

Do retirees pay Medicare tax?

Retirees pay Medicare tax only on wages or self-employment income, not on retirement income. Social Security benefits, pensions, 401(k) and IRA withdrawals are not wages, so no Medicare tax is withheld from them. Those amounts can still be subject to federal income tax; see tax on Social Security benefits.

A retiree who takes a job does pay Medicare tax on that paycheck. IRS Publication 15 states that wages are generally subject to Social Security and Medicare tax regardless of the employee's age or whether the employee already receives Social Security benefits. Enrolling in Medicare does not stop the withholding either.

What to do if Medicare withholding looks wrong

1. Divide the Medicare line on your pay stub by the gross pay for that period. The result should be 1.45%, or 2.35% on the portion of pay above $200,000 for the year.
2. At year end, compare Form W-2 box 6 (Medicare tax withheld) with 1.45% of box 5 (Medicare wages), plus 0.9% of box 5 above $200,000.
3. If the math is off, ask your payroll department to correct it. Over- or under-withheld FICA is fixed by the employer, usually on Form W-2c and Form 941-X, not on your own tax return.
4. If you had two jobs, remember that each employer withholds the regular 1.45% on all your pay there. Because Medicare has no cap, there is no excess Medicare tax to claim back, unlike excess Social Security tax.