Health Care Reform Website

Additional Medicare Tax

The Affordable Care Act added an Additional Medicare Tax that went into effect on January 1, 2013. The 0.9% increase in the Medicare payroll tax applies to wages above certain thresholds.The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately and $200,000 for all other taxpayers. Employers are responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.