Medicare Tax

Accounting Dictionary

Medicare Tax

Medicare tax is paid by nearly every American worker to finance Medicare and provide market place discounts for people buying Obamacare.

The tax is 1.45% on every worker’s salary. The employer matches this amount for a total of 2.9%. An additional .09% is paid by workers who have more than $200,000 in Medicare wages and married couples earning more than $250,000 in Medicare wages. There is also a 3.8% surtax on the lesser of net investment income or the excess of income over $200,000 for individuals and $250,000 for married couples. The two taxes aimed at high earners were passed to finance Obamacare.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!