The Medicare tax rate for employees is 1.45% of your wages, and your employer pays a matching 1.45% on top. Unlike Social Security, there is no wage cap, so Medicare tax applies to every dollar of covered pay, from your first paycheck of the year to your last.
Medicare tax is one half of FICA, the payroll tax that funds Social Security and Medicare. It is usually the smallest line on your pay stub, but it is also the one that never stops. This guide covers how the rate works, which pay it applies to, what lowers it, and how to check the number on your own stub.
The Medicare Tax Rate for 2026
For 2026, the rates are set as follows:
| Who pays | Rate | Wage limit |
|---|---|---|
| Employee (withheld from your pay) | 1.45% | None |
| Employer (paid on top of your pay) | 1.45% | None |
| Additional Medicare Tax (employee only) | 0.9% | Withheld on wages over $200,000 in a year |
| Self-employed (Medicare part of SE tax) | 2.9% | None, applied to 92.35% of net earnings |
The employee and employer shares together make 2.9%. If you work for yourself, you pay both halves through self-employment tax, which combines 12.4% for Social Security and 2.9% for Medicare on 92.35% of your net self-employment earnings.
The 0.9% Additional Medicare Tax only kicks in at high earnings, and your employer does not match it. It has its own rules and filing thresholds, covered in our guide to what Additional Medicare Tax is.
How Medicare Tax Differs From Social Security Tax
Both taxes come out of the same paycheck and both are flat percentages, so they are easy to mix up. The big difference is the cap.
- Social Security is 6.2% on wages up to $184,500 in 2026. Once your year-to-date pay passes that amount, Social Security withholding stops for the rest of the year.
- Medicare is 1.45% on all wages, with no limit. High earners keep paying it all year, and pay an extra 0.9% on wages above $200,000.
That is why someone earning $300,000 sees the Social Security line on their pay stub drop to zero late in the year while the Medicare line keeps going. For more on the other half of FICA, see how Social Security tax works.
What Medicare Tax Looks Like at Different Salaries
Because the rate is flat, Medicare tax grows in a straight line with your pay until you pass $200,000. The table below shows estimates from the PaycheckHubs paycheck calculator for a single filer paid biweekly with no pre-tax deductions.
| Annual salary | Medicare per biweekly paycheck | Medicare per year |
|---|---|---|
| $30,000 | $16.73 | $435 |
| $60,000 | $33.46 | $870 |
| $120,000 | $66.92 | $1,740 |
| $210,000 | $120.58 | $3,135 |
| $300,000 | $201.92 | $5,250 |
Up to $120,000, the yearly figure is simply 1.45% of salary. At $210,000, the regular 1.45% comes to $3,045, and the extra $90 is the 0.9% Additional Medicare Tax on the $10,000 above $200,000. At $300,000, the extra piece is $900 on the $100,000 above the threshold.
One caveat on those top two rows: the calculator spreads the Additional Medicare Tax evenly across the year. In practice, your employer starts withholding the extra 0.9% only in the pay period when your wages for the year cross $200,000, so early-year paychecks show plain 1.45%.
Worked Example: An Hourly Worker in Florida
Say you earn $23 an hour, work 40 hours a week, get paid weekly, and file single. You live in Florida, which has no state income tax, so the payroll lines are all federal.
- Weekly gross pay: $920
- Medicare tax (1.45%): $13.34
- Social Security tax (6.2%): $57.04
- Federal income tax withholding: $68.48
- Estimated take-home pay: $781.14
Over a full year, that comes to $47,840 in gross pay and about $694 in Medicare tax. Your employer pays the same amount again as its share, which never appears as a deduction on your stub. You can run your own numbers with the Florida paycheck calculator.
What Lowers the Wages Subject to Medicare Tax
Medicare tax is figured on your Medicare wages, which are not always the same as your gross pay. Some deductions reduce them and some do not.
Deductions that reduce Medicare wages
- Health, dental and vision premiums paid pre-tax through a cafeteria (Section 125) plan
- HSA contributions made through payroll under a cafeteria plan
- Many pre-tax commuter benefits
Deductions that do not
- Traditional 401(k), 403(b) and 457 deferrals. They lower your federal income tax, but Medicare and Social Security tax still apply to that money.
- Roth 401(k) contributions and other after-tax deductions
Here is how that plays out. A married employee in North Carolina earning $85,000, paid semimonthly, has $51.35 in Medicare tax per paycheck with no deductions. Add a $150 pre-tax health premium each paycheck, and Medicare tax drops to $49.18, saving about $52 a year. Federal and state income tax fall too, so take-home pay drops by less than the $150 premium. Try your own deductions in the North Carolina paycheck calculator, and see pre-tax vs after-tax deductions for the full list.
How to Check Medicare Tax on Your Pay Stub
Look for a line labeled Medicare, MED, FICA-MED or something close. To check it, multiply your Medicare wages for the period by 0.0145. If you have no pre-tax health or HSA deductions, that is just your gross pay times 0.0145.
If the number is off by more than a few cents, look at your pre-tax benefits first, since they are the usual reason Medicare wages differ from gross pay. Year-end Medicare wages appear in Box 5 of your W-2, and the tax withheld appears in Box 6. If a line still doesn't add up, your payroll department can show you how it was figured.
Medicare tax is the same in every state, so moving from Texas to New York changes your state income tax but not this line.
Frequently Asked Questions
What is the Medicare tax rate in 2026?
The employee rate is 1.45% of wages and the employer pays another 1.45%. Wages over $200,000 in a year also have 0.9% Additional Medicare Tax withheld, which only the employee pays.
Is there a maximum on Medicare tax?
No. Medicare tax has no wage cap, unlike Social Security tax, which stops at $184,500 of wages in 2026.
Do 401(k) contributions reduce Medicare tax?
No. Traditional 401(k) deferrals reduce federal income tax withholding, but they are still subject to Medicare and Social Security tax. Pre-tax health premiums and payroll HSA contributions under a cafeteria plan usually do reduce it.
Can I get Medicare tax refunded?
Generally no, because Medicare tax is figured on wages, not on your total tax situation. The main exception is an employer error, which the employer should correct.
Sources
- IRS Topic No. 751, Social Security and Medicare Withholding Rates
- IRS Publication 15, Employer's Tax Guide
- IRS: Self-Employment Tax (Social Security and Medicare Taxes)
- SSA: Contribution and Benefit Base
Run the numbers for your state
Written and checked against IRS, Social Security Administration and state tax agency publications for the 2026 tax year. General information, not tax, legal or financial advice. Read our editorial policy, calculation methodology and sources.