Medicare Tax on Your Pay Stub: 2026 Rates, Calculations & What "MED" Really Means

 

You've probably noticed a deduction labeled "MED," "Medicare," or "FICA-Med" on your pay stub. It's taking money out of every single paycheck — but what exactly is it, and is the amount correct?

This guide breaks down everything you need to know about Medicare tax on your pay stub in 2026 — the rates, how it's calculated, and how to verify your employer got it right.

What Is Medicare Tax?

Medicare tax is a federal payroll tax that funds the Medicare health insurance program. This program provides healthcare coverage primarily for Americans 65 and older, as well as certain younger people with disabilities.

Every time you get paid, your employer withholds Medicare tax from your paycheck. They also pay a matching amount on your behalf. Together, these contributions fund hospital insurance, doctor visits, and other medical services for Medicare beneficiaries.

Medicare tax is part of FICA (Federal Insurance Contributions Act), which also includes Social Security tax. You'll often see them grouped together on your pay stub, though many employers list them separately.

2026 Medicare Tax Rates

The Medicare tax rate for 2026 is 1.45% for employees. Your employer pays an additional 1.45%, for a combined rate of 2.9%.

Unlike Social Security tax, there's no wage cap for Medicare. Every dollar you earn is subject to the 1.45% Medicare tax — whether you make $30,000 or $300,000.

Additional Medicare Tax: If you earn more than $200,000 in a calendar year (single filers) or $250,000 (married filing jointly), you'll owe an extra 0.9% Medicare tax on wages above that threshold. This brings your total Medicare tax rate to 2.35% on high earnings. Your employer is required to start withholding this additional tax once your wages exceed $200,000, regardless of your filing status.

How Medicare Tax Appears on Your Pay Stub

Different payroll systems use different labels. All of these refer to the same Medicare tax:

• MED — Short for Medicare
• Medicare — Spelled out in full
• FICA-Med — Medicare portion of FICA
• Fed Med/EE — Federal Medicare, Employee share
• Med Tax — Medicare Tax

If your stub shows a single "FICA" line at 7.65%, that's Medicare (1.45%) and Social Security (6.2%) combined. Some employers split them; others combine them into one deduction.

How to Calculate Medicare Tax on Your Pay Stub

The calculation is simple: multiply your gross pay by 1.45%.

Examples:

• Biweekly paycheck, $60,000 salary: $2,307.69 gross × 0.0145 = $33.46 Medicare tax
• Weekly paycheck, $20/hour × 40 hours: $800 gross × 0.0145 = $11.60 Medicare tax
• Semi-monthly paycheck, $85,000 salary: $3,541.67 gross × 0.0145 = $51.35 Medicare tax

Your pay stub should also show a YTD (year-to-date) total for Medicare tax. This running number tells you how much you've paid so far this calendar year.

Medicare Tax vs. Social Security Tax

Both are FICA taxes, but they work differently:

Medicare Tax:
• Rate: 1.45% (employee) + 1.45% (employer)
• No wage cap — applies to ALL earnings
• Additional 0.9% on earnings over $200,000

Social Security Tax (OASDI):
• Rate: 6.2% (employee) + 6.2% (employer)
• Wage cap: $184,500 in 2026
• No additional tax for high earners

This is why high earners see Social Security tax stop being withheld mid-year (once they hit the $184,500 cap), but Medicare tax continues on every paycheck all year long.

Additional Medicare Tax: The 0.9% Surtax

If your wages exceed $200,000 in a calendar year, your employer must start withholding an extra 0.9% Medicare tax. This additional tax only applies to you — there's no employer match.

Thresholds by filing status:
• Single: $200,000
• Married Filing Jointly: $250,000
• Married Filing Separately: $125,000

Important: Your employer withholds based on the $200,000 threshold regardless of your actual filing status. If you're married filing jointly, you may have had too much or too little withheld — you'll reconcile this when you file your tax return using Form 8959.

How to Verify Your Medicare Tax Is Correct

Follow these steps to check your pay stub:

1. Find your gross pay for the current pay period
2. Multiply by 0.0145 (1.45%)
3. Compare to the Medicare deduction on your stub
4. If you've earned over $200,000 YTD, the rate should be 2.35% (1.45% + 0.9%)

If the numbers don't match, contact your payroll department. Errors happen, and it's better to catch them early than deal with problems at tax time.

Medicare Tax for Self-Employed Workers

If you're self-employed, you pay both the employee and employer portions — a total of 2.9% Medicare tax on your net self-employment income. This is calculated when you file your annual tax return using Schedule SE.

The additional 0.9% Medicare tax also applies to self-employment income above the thresholds. And like employees, there's no wage cap — all your net self-employment earnings are subject to Medicare tax.

The good news: you can deduct the employer-equivalent portion (1.45%) as an above-the-line deduction on your Form 1040.

Frequently Asked Questions

Q: Why is Medicare tax taken from every paycheck?
A: Unlike Social Security, Medicare has no wage cap. The 1.45% tax applies to all your earnings, so it's withheld from every paycheck regardless of how much you've earned that year.

Q: Can I opt out of Medicare tax?
A: No. Medicare tax is mandatory for nearly all workers. Very limited exceptions exist for certain religious groups and some nonresident aliens.

Q: What does Medicare tax pay for?
A: Medicare tax funds hospital insurance (Part A), which covers inpatient hospital stays, skilled nursing facilities, hospice care, and some home health services for Medicare beneficiaries.

Q: How does Medicare tax appear on my W-2?
A: Medicare wages appear in Box 5 of your W-2, and Medicare tax withheld appears in Box 6. These amounts should match your final pay stub's YTD totals.

Check Your Pay Stub

Medicare tax is straightforward: 1.45% of every dollar you earn, with no cap. Check it on your pay stub — the math takes seconds and catches errors before they become tax-time headaches.

Confused by other deductions on your pay stub? Check out this complete guide to Medicare on your pay stub for a deeper breakdown, or see our guide to common pay stub abbreviations to decode every line item.

If your pay stub is hard to read, upload it to CleanPaystubs for a clean, formatted report where every deduction is clearly labeled.

Last updated: February 2026