Definition
Medicare tax is the 1.45% payroll tax withheld from your wages to fund the Medicare program. Unlike Social Security tax, Medicare has no wage cap — the 1.45% applies to every dollar of wages earned in the year. Your employer pays a matching 1.45%.
Self-employed workers pay both halves — a combined 2.9% on net self-employment earnings — as part of self-employment tax.
High earners face an additional 0.9% Medicare surtax on wages above certain thresholds (see Additional Medicare Tax). Combined, these employees pay 2.35% on wages above the threshold.
How this affects your W-4
Medicare withholding is not affected by your W-4. It's calculated automatically at 1.45% of each paycheck, and there's no cap or adjustment mechanism.
When using this calculator to estimate take-home pay, Medicare is shown as a separate line item alongside Social Security — both are factored into the final take-home calculation.
See how medicare tax affects your withholding
Use the free W-4 calculator to calculate your exact withholding with your specific situation.
Open the W-4 Calculator →Related terms
FICA
The combined Social Security and Medicare payroll taxes — 7.65% of wages for most employees.
Social Security Tax
The 6.2% payroll tax withheld on wages up to the annual wage base to fund Social Security benefits.
Additional Medicare Tax
An extra 0.9% Medicare tax on wages above $200,000 (single) or $250,000 (married filing jointly).