Medicare Tax Rates In 2023
What Is Medicare And Social Security Tax For 2017 from medicare-faqs.com Understanding Medicare Taxes Medicare is a health insurance program funded by the government to help cover the medical expenses for Americans aged 65 and older. It is an essential part of the safety net for retirees, ensuring that they have the medical care they need in their later years. To help fund this program, the government imposes taxes on income received by both employers and employees. In 2023, the Medicare tax rate is 1.45% of wages. This rate is applied to all wages and salaries earned, with no cap on the amount of wages or salaries subject to taxation. In addition to the 1.45% rate, there is also an additional 0.9% Medicare tax on earnings over a certain amount. This additional tax applies to those who earn wages and salaries above $200,000 (for single filers) and $250,000 (for married filing jointly). This additional tax is commonly referred to as the Medicare surtax. It is important to note that ...