Medicare Contribution Tax Calculator
Calculating your Federal Medicare Tax Liability is quick and easy with our Medicare Tax Calculator.
Nobody gets excited about paying taxes, but there's a big future benefit to all that cash you fork over for Medicare tax payments.
Medicare is a federal health insurance program for US citizens who are 65 years of age or older. Younger people with disabilities, and certain diseases may qualify for Medicare as well.
With the cost of medical insurance going through the roof, and the benefits of this insurance at an all time low, there is no doubt Medicare is a savior element for affordable retirement health insurance.
For current 2018 - 2019 tax filing purposes (income earned in 2018), the Medicare tax rate based on tax filer earnings is:
- 1.45 percent on your taxable income up to the first $200,000 of wages for single tax filers, $250,000 for joint returns, and $125,000 for married taxpayers filing separate returns.
- Plus: an additional 0.9% Medicare tax on all wages in excess of $200,000 for single tax filers, $250,000 for joint returns, and $125,000 for married taxpayers filing separate returns.
|For the filing status listed below that applies to you||You and your employer each pay 1.45% Medicare tax on income you earned up to||Then only you pay 0.9% additional tax on earnings above|
|Married filing jointly||$250,000||$250,000|
|Married filing separately||$125,000||$125,000|
This is the amount that should be withheld from your paycheck, and the amount your employer is required to pay on your behalf for your Medicare tax contribution.
If you have deductions or would like a more accurate calculation of all taxes due, use the Free TurboTax or H&R Block calculators to calculate all federal income tax liabilities.
Calculate FICA Medicare Tax Liability
Employer Medicare Tax Payment Requirements
Employers are required to match the 1.45% on initial employee earnings. However, they are not required to pay additional taxes on access earnings.
Federal Insurance Contributions Act (FICA)
Depending on your employment status, the FICA tax (also known as Payroll Tax or Self-Employment Tax), encompasses your federal contributions to Social Security and Medicare as a percentage of your income.
As an employee, you pay one half of the total 2.9% amount due for Medicare, while your employer is required to pay the other half for you. Your employer then gets to take a tax deduction for their half of the contribution on their corporate tax return as a business expense.
Self-employed taxpayers are required to pay the total amount themselves as Self-Employment tax. They may then take a tax deduction on half of it as an "adjustment" on their tax return.
The additional Medicare tax contribution of 0.9% for high salaries (see limits below) were introduced in 2013. This tax is calculated based on excess income limits, and your tax filing status. Limits are as follows:
Additional Medicare Tax Is Due On Income Above
- Single $200,000
- Married filing jointly $250,000
- Married filing separately $125,000