Additional Medicare Tax: 0.9% Thresholds and Calculator

“A 0.9% Additional Medicare tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation that exceed the following threshold amounts based on filing status:
$250,000 for married filing jointly;
$125,000 for married filing separately; and
$200,000 for all other taxpayers.”

“Additional Medicare Tax. A 0.9% Additional Medicare Tax applies to your Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount. The threshold amounts are listed in the Threshold Amounts for Additional Medicare Tax chart.”

“Threshold Amounts for Additional Medicare Tax Note: The threshold amounts below aren’t indexed for inflation. Filing status Threshold amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying surviving spouse $200,000”

“Threshold Amounts for Additional Medicare Tax Note: The threshold amounts below aren’t indexed for inflation. Filing status Threshold amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying surviving spouse $200,000”

“The rate is 0.9 percent.”

“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.”

“Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. A self-employment loss shouldn’t be considered for purposes of this tax. RRTA compensation should be separately compared to the threshold.”

“Step 1. Calculate Additional Medicare Tax on any wages in excess of the applicable threshold for the filing status, without regard to whether any tax was withheld.
Step 2. Reduce the applicable threshold for the filing status by the total amount of Medicare wages received, but not below zero.
Step 3. Calculate Additional Medicare Tax on any self-employment income in excess of the reduced threshold.”

“Example 3. Carl, a single filer, has $145,000 in self-employment income and $130,000 in wages. Carl’s wages don’t exceed $200,000. Therefore, Carl’s employer didn’t withhold Additional Medicare Tax. However, the $130,000 of wages reduces the self-employment income threshold to $70,000 ($200,000 threshold minus the $130,000 of wages). Carl is liable for Additional Medicare Tax on $75,000 of self-employment income ($145,000 in self-employment income minus the reduced threshold of $70,000).”

“Example. Kathleen and Liam are married and file a joint return. Kathleen has $130,000 in wages (included on line 4 of Form 8959). Liam has $140,000 in self-employment income (included on line 8 of Form 8959). The $130,000 of Kathleen’s wages reduces Liam’s self-employment income threshold to $120,000 ($250,000 threshold minus the $130,000 of wages, as figured on lines 9 through 11 of Form 8959). Kathleen and Liam are liable for Additional Medicare Tax on $20,000 of Liam’s self-employment income ($140,000 in self-employment income minus the reduced threshold amount of $120,000, as figured on line 12 of Form 8959). Kathleen and Liam owe Additional Medicare Tax of $180.00 ($20,000 x 0.9% (0.009), as figured on line 13 of Form 8959).”

“Your employer is responsible for withholding the 0.9% Additional Medicare Tax on your Medicare wages or RRTA compensation paid in excess of $200,000 in a calendar year. Your employer is required to begin withholding Additional Medicare Tax in the pay period in which your wages or compensation for the year exceed $200,000 and continue to withhold it in each pay period for the remainder of the calendar year.”

“An employer must withhold Additional Medicare Tax from wages it pays to an individual in excess of $200,000 in a calendar year, without regard to the individual’s filing status or wages paid by another employer. An individual may owe more than the amount withheld by the employer, depending on the individual’s filing status, wages, compensation, and self-employment income.”

“Your employer must withhold Additional Medicare Tax on wages it pays to you in excess of $200,000 in a calendar year. Your employer cannot honor a request to cease withholding Additional Medicare Tax if it is required to withhold it. You will claim credit for any withheld Additional Medicare Tax against the total tax liability shown on your individual income tax return (Form 1040 or 1040-SR).”

“You make the request by filing a new Form W-4, Employee’s Withholding Certificate, with your employer. The additional income tax withholding will be applied against the taxes shown on your tax return, including any Additional Medicare Tax liability. You can’t request additional withholding specifically for Additional Medicare Tax.”

“There is no employer match for Additional Medicare Tax.”

“Changes to Form 8959 for 2026. Form 8959 has been revised to report Additional Medicare Tax on Medicare wages and Railroad Retirement Tax Act (RRTA) compensation separately from Additional Medicare Tax on self-employment income. In prior years, these amounts were combined on one line of Form 8959. For 2026, report the Additional Medicare Tax on Medicare wages and RRTA compensation from Form 8959, line 12, on Schedule 2 (Form 1040), line 17b, or Form 1040-SS, Part I, line 5b. Report the Additional Medicare Tax on self-employment income from Form 8959, line 18, on Schedule 2 (Form 1040), line 11, or Form 1040-SS, Part I, line 5a.”

“You must file Form 8959 if one or more of the following applies to you.
Your Medicare wages and tips on any single Form W-2 (box 5) are greater than $200,000.
Your RRTA compensation on any single Form W-2 (box 14) is greater than $200,000.
Your total Medicare wages and tips plus your self-employment income, if any, and your spouse’s Medicare wages and tips and self-employment income, if married filing jointly, are greater than the threshold amount for your filing status in the Threshold Amounts for Additional Medicare Tax chart.
Your total RRTA compensation and tips (Form W-2, box 14) and your spouse’s RRTA compensation and tips, if married filing jointly, are greater than the threshold amount for your filing status in the Threshold Amounts for Additional Medicare Tax chart.”

“The tax imposed by section 1411 on an individual’s net investment income is not applicable to wages, RRTA compensation, or self-employment income.”

“You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar.”

“Caution: DRAFT—NOT FOR FILING This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information. Do not file draft forms.”