Medicare Tax Calculator (2026)
Calculate 2026 Medicare tax on wages and self-employment income: the 1.45% withholding, the 2.9% SE rate and the 0.9% Additional Medicare Tax.
Medicare tax is charged on every dollar of wages and self-employment earnings, with no yearly cap. This calculator works out the 2026 amounts: the 1.45% withheld from your pay (your employer adds a matching 1.45%), the 2.9% self-employed people pay on 92.35% of profit, and the 0.9% Additional Medicare Tax, reconciled the way Form 8959 does it.
How to use this tool
- Enter your Medicare wages from all jobs (W-2 box 5).
- Add any net self-employment profit; a loss counts as zero.
- Pick your filing status. Joint filers add their spouse's wages and profit.
- Enter actual Additional Medicare withholding if known, and choose pay frequency for an average regular Medicare amount.
Formula
Medicare = 1.45% × wages + 2.9% × (0.9235 × profit) + 0.9% × earnings over the threshold
The 0.9% threshold is $200,000 (single, head of household, surviving spouse), $250,000 (joint) or $125,000 (separate) and is not indexed for inflation. It applies first to wages; the threshold is then reduced by wages, and self-employment earnings above what is left are also taxed. Employers withhold the 0.9% only on their own pay above $200,000, whatever your filing status.
Example
A single filer earns $230,000 salary plus $40,000 freelance profit. Medicare on wages is $3,335. SE earnings are $40,000 × 0.9235 = $36,940, so SE Medicare is $1,071.26. Additional Medicare Tax is 0.9% of the $30,000 of wages over $200,000 ($270) plus 0.9% of all $36,940 of SE earnings ($332.46), since wages used up the threshold: $602.46. The employer withholds $270, leaving $332.46 for the return. Total Medicare tax: $5,008.72, about 1.86% of earnings.
What this calculator leaves out
Railroad (RRTA) pay, unreported tips (Form 4137), church employee income and the optional SE methods are not included. Blank actual withholding assumes one employer per person; your real 0.9% withheld is W-2 box 6 minus 1.45% of box 5. Income tax and Social Security tax are separate.
Frequently asked questions
Is there a maximum on Medicare tax?
No. Social Security tax stops at $184,500 of wages in 2026, but Medicare applies to all wages and self-employment earnings.
Why was 0.9% withheld when we file jointly?
Employers must withhold it once they pay you over $200,000 and cannot look at your spouse's income. If joint income stays under $250,000, the excess comes back as a credit on your return.
Can two jobs cause Additional Medicare Tax?
Yes. Each employer checks only its own payroll, so two $120,000 jobs trigger no 0.9% withholding, yet a single filer owes 0.9% × $40,000 = $360 at filing. Raise W-4 withholding or make estimated payments.
Do 401(k) contributions reduce Medicare wages?
No. Traditional 401(k) deferrals are still taxed for Medicare. Section 125 health premiums and FSA contributions usually are not, which is why W-2 box 5 can be lower than salary.
Sources
This tool gives an estimate for general information only. It is not financial, tax, legal or medical advice — check with a qualified professional before you rely on the result.
Last updated: 2026