Additional Medicare Tax

Starting in 2013, the 0.9% Additional Medicare Tax applies to employees' compensation and self-employment income for Higher-Income Taxpayers.

The Affordable Care Act increased the employee-share of Hospital Insurance (Medicare) by 0.9% of Medicare wage in excess of:

  • $250,000 for a joint return (Married Filing Jointly)
  • $200,000 for single individuals

IMPORTANT - Employers MUST withhold Additional Medicare Tax if the employee wages are in excess of $200,000.