what is medicare tax?

[riya]

I recently noticed a deduction labeled “Medicare tax” on my paycheck and I’m a bit confused about what it actually covers. Can someone explain what Medicare tax is, how much is taken out, and who it benefits? Also, is it something both the employer and employee pay?

 

[Gsusangrey]

Medicare tax is a 2.9% payroll tax (split 1.45% each for employer/employee) funding Medicare. High earners pay an extra 0.9%. Self-employed individuals cover the full 2.9%.

 

[niyati]

The Medicare tax is a payroll tax in the United States that helps fund the Medicare program, which provides health insurance primarily for people aged 65 and older, as well as for certain younger people with disabilities.

 

[danisjohn]

Medicare tax is a U.S. federal payroll tax that funds the Medicare health insurance program for people 65 and older or with certain disabilities. Employees and employers each pay 1.45% of wages. High earners may pay an additional 0.9% in Medicare tax, without an employer match.

 

[robertwilliam]

Medicare tax is used to fund the Medicare health system in the United States.

 

[Jarwish]

Medicare tax is a U.S. federal payroll tax used to fund the Medicare program, which provides health insurance for people aged 65 and older and certain younger individuals with disabilities.


Both employees and employers each pay 1.45% of wages, with an additional 0.9% surtax on high earners.