Medicare Tax

Definition

The Medicare portion of FICA is 1.45 percent on all wages with no cap, plus an additional 0.9 percent under Section 3101(b)(2) on wages above income thresholds. Employers do not match the additional 0.9 percent.

Examples

• A single filer with $300,000 in wages pays 1.45 percent on all wages plus 0.9 percent on $100,000 (excess above $200,000).