Written by the Fiveable Content Team • Last updated August 2025
Written by the Fiveable Content Team • Last updated August 2025
Definition
The Additional Medicare Tax is a tax imposed on high-income earners to help fund Medicare. It applies to wages, self-employment income, and railroad retirement (RRTA) compensation above certain thresholds.
The threshold for the tax differs based on filing status: $250,000 for married couples filing jointly, $200,000 for single filers, and $125,000 for married individuals filing separately.
Employers are required to withhold the Additional Medicare Tax from wages exceeding $200,000 in a calendar year.
Self-employed individuals must include this tax when calculating their estimated taxes.
Unlike regular Medicare tax, there is no employer match for the Additional Medicare Tax.
Related terms
Medicare Tax: A payroll tax that funds the U.S. government’s Medicare program.
FICA Taxes: Federal Insurance Contributions Act taxes that include Social Security and regular Medicare taxes.
Self-Employment Tax: A tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves.