Does the Percentage of Income Going Towards Medicare Change According to Income Level?


Quick Answer

People who earn high incomes pay an additional 0.9 percent to Medicare, explains the Society for Human Resource Management. The threshold for this adjustment is $250,000 for couples filing jointly, $125,000 for couples filing individually and $200,000 for single taxpayers.

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Full Answer

The additional Medicare contribution from high income earners went into effect in 2013 as a reconciliation for the Patient Protection and Affordable Care Act, notes the American Institute of CPAs. Also in 2013, investment income for individuals, estates and trusts became subject to a 3.8 percent Medicare tax after the same high-income threshold.

The standard 2015 Medicare contribution rate is 1.45 percent from both employer and employee, according to the U.S. Social Security Administration. Self-employed individuals pay both the employee and employer portions. Medicare contributions do not have an earnings limit.

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