Additional Medicare Tax 2023 : Medicare Tax Rates for 2023

Additional Medicare Tax 2023 : Medicare Tax Rates for 2023

Additional Medicare Tax went into effect in 2013 and applies to wages, compensation, and self-employment income above a threshold amount received in taxable years beginning after December 31, 2012.

The rate is 0.9 percent.

An individual is liable for Additional Medicare Tax if the individual’s wages, compensation, or self-employment income (together with that of his or her spouse if filing a joint return) exceed the threshold amount for the individual’s filing status:

Filing Status Threshold Amount
Married filing jointly $250,000
Married filing separate $125,000
Single $200,000
Head of household (with qualifying person) $200,000
Qualifying widow(er) with dependent child $200,000

additional medicare

Additional Medicare Tax 2023 :

The maximum wages subject to Social Security taxes will increase from 147,000 dollars in 2022 to 160,200 dollars in 2023.

This level of Social Security wage cap growth represents a 25 percent increase since 2018 over the past five years.

There is no maximum income threshold for Medicare taxes.

The top limit for married taxpayers filing jointly is $250,000, while the upper limit for married taxpayers filing separately is $125,000.

Medicare tax is applied to the first $200,000 of employee wages, and 2.35 percent Medicare tax is applied to all employee wages in excess of $200,000

The FICA tax rate for businesses and employees in 2023 is 7.65%, which corresponds to approximately 1.45% for Medicare.