2023 Additional Medicare Tax Threshold
For 2023, the Additional Medicare Tax Threshold is 0.9% (Rate), $250,000 (Married filing jointly) and $125,000 (Married filing separately).
Effective 2023-01-01Source: 2023 Instructions for Form 8959 (IRS)Verified 2026-08-29
Compared with 2022
Every figure on this page is unchanged from 2022.
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Rate | 0.9% | 0.9% | +0% (+0.0%) |
| Married filing jointly | $250,000 | $250,000 | +$0 (+0.0%) |
| Married filing separately | $125,000 | $125,000 | +$0 (+0.0%) |
Who it applies to
Taxpayers who owe Additional Medicare Tax and must file Form 8959 for tax year 2023, including those filing as married filing jointly or married filing separately.
What changed this year, and why
The Additional Medicare Tax threshold amounts for 2023 were published by the IRS in the Instructions for Form 8959. The thresholds are not indexed for inflation.
Common questions
- What is the Additional Medicare Tax rate for 2023?
- The Additional Medicare Tax rate is 0.9% for 2023. It applies to Medicare wages, Railroad Retirement Tax Act compensation, and self-employment income that exceed the threshold amount for your filing status.
- What is the threshold for married filing jointly?
- For married taxpayers filing jointly, the Additional Medicare Tax threshold is $250,000 for 2023.
- What is the threshold for married filing separately?
- For married taxpayers filing separately, the Additional Medicare Tax threshold is $125,000 for 2023.
- Does the employer withholding threshold match the filing-status threshold?
- No. An employer must begin withholding the 0.9% Additional Medicare Tax once wages for the calendar year exceed a set amount, regardless of the employee's filing status. That employer withholding amount does not change based on whether a taxpayer files jointly or separately. A taxpayer whose income exceeds their filing-status threshold may owe additional tax when filing their return even if the employer did not withhold enough.
Your employer withholds at $200,000 whatever your filing status
Employers must begin withholding the Additional Medicare Tax in the pay period where your wages or RRTA compensation for the calendar year go over $200,000, and must continue to withhold it every pay period for the rest of that year. This $200,000 withholding trigger applies no matter what your filing status is - it is not tied to the $250,000 threshold for married couples filing jointly or the $125,000 threshold for married couples filing separately. As a result, a married taxpayer filing jointly with combined income above $250,000 may find that no employer withheld the tax if neither spouse's individual wages crossed $200,000. Similarly, a married taxpayer filing separately whose income exceeds $125,000 but whose wages stay below $200,000 will also see no withholding. In either case, the taxpayer still owes the tax on the amount over the filing-status threshold and must report it on Form 8959. Any Additional Medicare Tax that was withheld can be claimed as a credit against the total tax liability shown on the return.
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.
2023 Instructions for Form 8959, Additional Medicare Tax (IRS)
These thresholds do not move with inflation
The dollar thresholds that determine when the 0.9% Additional Medicare Tax applies are fixed by statute and do not increase each year with inflation. The confirmed amounts are $250,000 for married couples filing jointly and $125,000 for married couples filing separately; the remaining filing statuses use a threshold that is also set in statute and likewise not adjusted. Because the thresholds are not indexed, more taxpayers may become subject to the tax over time simply as wages rise with general price levels, even if their real income has not grown. Congress would need to pass new legislation to change the threshold amounts; the IRS cannot adjust them through guidance or annual inflation factors. When planning for future years, taxpayers should therefore assume these same dollar figures continue to apply until the law is amended, and should not expect the thresholds to move automatically with the cost of living.
Note. The threshold amounts below aren't indexed for inflation.
2023 Instructions for Form 8959, Additional Medicare Tax (IRS)
When Form 8959 is required
You must file Form 8959 if any one of several conditions is met. First, you must file if your Medicare wages and tips reported in box 5 of any single Form W-2 exceed $200,000. Second, you must file if your RRTA compensation reported in box 14 of any single Form W-2 exceeds $200,000. Third, you must file if your total Medicare wages and tips plus your self-employment income (including, for married filing jointly, those of your spouse) are greater than the threshold amount for your filing status shown in the Threshold Amounts chart - $250,000 for married filing jointly, $125,000 for married filing separately, or $200,000 for single, head of household, and qualifying surviving spouse. Fourth, the same rule applies using total RRTA compensation and tips in place of wages and self-employment income. Medicare wages for this purpose include tips from Form 4137 and wages from Form 8919; self-employment income comes from Schedule SE, Part I, line 6, with negative amounts ignored.
Who Must File 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 (including the Medicare wages and tips and self-employment income of your spouse, if married filing jointly), are greater than the threshold amount for your filing status in the Threshold Amounts for Additional Medicare Tax chart.
2023 Instructions for Form 8959, Additional Medicare Tax (IRS)
Wages and self-employment income are added together
For purposes of the Additional Medicare Tax, Medicare wages and self-employment income are added together and compared to the threshold for your filing status. This means a taxpayer whose wages fall below the threshold may still owe the 0.9% tax if self-employment income pushes the combined total over the line. When wages and self-employment income coexist, the threshold applied to the self-employment portion is reduced (but not below zero) by the amount of Medicare wages. A self-employment loss is not counted for this purpose, so it cannot increase the tax. For married couples filing jointly, the wages and self-employment income of both spouses are combined against the $250,000 threshold, even if each spouse individually falls below it. For married filing separately, the combined total is compared to the $125,000 threshold.
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.
2023 Instructions for Form 8959, Additional Medicare Tax (IRS)
Railroad compensation is measured on its own
Railroad Retirement Tax Act (RRTA) compensation is treated differently from Medicare wages when measuring whether the 0.9% Additional Medicare Tax applies. While Medicare wages and self-employment income are added together and compared to the filing-status threshold, RRTA compensation is separately compared to that same threshold on its own. There is no equivalent rule for RRTA compensation: the threshold at which Additional Medicare Tax applies to self-employment income is reduced (but not below zero) by the total amount of Medicare wages received, but RRTA compensation does not reduce the threshold for any purpose. Similarly, RRTA compensation does not combine with wages or self-employment income when testing against the $250,000 threshold for married filing jointly or the $125,000 threshold for married filing separately. Each spouse's RRTA compensation is measured on its own against the applicable threshold. A railroad employer withholds the 0.9% tax on RRTA compensation it pays above a set dollar amount per calendar year, independent of other employers' payments, but that withholding trigger is distinct from the filing-status threshold used to determine actual tax liability.
There is no equivalent rule for RRTA compensation.
2023 Instructions for Form 8959, Additional Medicare Tax (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
2023 Instructions for Form 8959 (IRS)
- Rate
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.
- Married filing jointly
Married filing jointly $250,000
- Married filing separately
Married filing separately $125,000