Free 2026 Medicare tax calculator. Compute your 1.45% Medicare tax, additional 0.9% Medicare surtax, and Net Investment Income Tax (NIIT) on wages and investment income.
The Medicare Tax Calculator computes your total employee-side Medicare-related tax for 2026, including the base 1.45% rate on all wages and the additional 0.9% surtax on earnings above $200,000 (single or head of household), $250,000 (married filing jointly or qualifying surviving spouse), or $125,000 (married filing separately).
Unlike Social Security tax, Medicare has no wage base cap, so every dollar of wages is taxed at 1.45%. High earners also face the 3.8% Net Investment Income Tax (NIIT) on investment income; the tax applies only to the lesser of net investment income or the amount by which MAGI exceeds the filing-status threshold.
Enter your wages, filing status, and investment income to see your complete Medicare tax picture, including the employer match shown separately for context. The calculator keeps the NIIT calculation honest by treating it as a separate tax on investment income rather than wage withholding.
Medicare taxes have multiple layers that many taxpayers overlook. This calculator shows the base tax, additional Medicare surtax, and potential NIIT in one view so you can understand your full Medicare-related tax burden and plan withholding accordingly. This complete view prevents unpleasant surprises and helps high earners plan quarterly estimated payments more accurately.
Base Medicare Tax = Gross Wages x 1.45% Additional Medicare Tax = Max(0, Wages - Threshold) x 0.9% Thresholds: $200,000 (Single/HoH), $250,000 (MFJ/QSS), $125,000 (MFS) NIIT = Lesser of Net Investment Income or MAGI excess x 3.8%
Result: Total Medicare-related taxes: $7,150
Base Medicare = $300,000 x 1.45% = $4,350. Additional Medicare = ($300,000 - $200,000) x 0.9% = $900. NIIT = min($50,000 net investment income, $150,000 MAGI excess) x 3.8% = $1,900. Total employee-side tax = $4,350 + $900 + $1,900 = $7,150.
Most workers see only the 1.45% line on their pay stub, but there are actually three Medicare-related taxes: the base 1.45% tax on all wages, the 0.9% Additional Medicare Tax on wages above the filing-status threshold, and the 3.8% Net Investment Income Tax on passive income for high earners.
Employers begin withholding the 0.9% surtax once wages exceed $200,000 in a calendar year, regardless of filing status. If you are married filing jointly, your actual threshold is $250,000, so you may be over-withheld or under-withheld. You reconcile on Form 8959 when you file.
Since NIIT applies to the lesser of net investment income or MAGI excess, strategies to reduce it include tax-exempt municipal bonds (whose income is excluded from NIIT), installment sales to spread capital gains over years, Roth conversions to reduce future investment income, and harvesting losses to offset capital gains.
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This calculator estimates employee-side Medicare tax by applying 1.45% to all entered wages and 0.9% Additional Medicare Tax only to wages above the filing-status threshold. It estimates NIIT separately as 3.8% of the lesser of net investment income or MAGI above the threshold, using wages plus the entered investment income as a simplified MAGI proxy because the page does not model every other MAGI adjustment. The employer 1.45% Medicare match is shown separately and is not added to the employee-side tax total.
The additional Medicare tax is an extra 0.9% that applies to wages exceeding $200,000 (single or head of household), $250,000 (married filing jointly or qualifying surviving spouse), or $125,000 (married filing separately). It was introduced by the Affordable Care Act in 2013 and is paid only by employees, not matched by employers.
The NIIT is a 3.8% tax on the lesser of your net investment income or the amount by which your MAGI exceeds the threshold ($200,000 single or head of household, $250,000 married filing jointly or qualifying surviving spouse, $125,000 married filing separately). It applies to interest, dividends, capital gains, rental income, and other passive income.
Yes, your employer pays a matching 1.45% base Medicare tax on all your wages. However, the employer does not pay the additional 0.9% surtax - that is solely the employee's responsibility. Self-employed individuals pay both halves (2.9% + 0.9% if applicable).
No. The $200,000/$250,000/$125,000 thresholds for the additional Medicare tax and the NIIT thresholds have remained unchanged since 2013. More taxpayers fall above these thresholds each year due to wage growth.
Employees cannot deduct the Medicare tax they pay. However, self-employed individuals can deduct the employer-equivalent portion of their self-employment tax (half of the 2.9% Medicare rate) as an above-the-line deduction on Schedule SE.
Social Security is taxed at 6.2% but capped at the annual wage base. Medicare is taxed at 1.45% with no cap, plus an additional 0.9% on high earners. Together they form the FICA taxes withheld from your paycheck.