2024 Additional Medicare Tax Threshold
For 2024, the Additional Medicare Tax Threshold figures are 0.9% (Rate), $250,000 (Married filing jointly), $125,000 (Married filing separately) and $200,000 (All other taxpayers).
Effective 2024-01-01Source: 2024 Instructions for Form 8959 (IRS)Verified 2026-09-03
Compared with 2023
Every figure on this page is unchanged from 2023.
| Item | 2023 | 2024 | 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%) |
| All other taxpayers | $200,000 | $200,000 | +$0 (+0.0%) |
Who it applies to
Taxpayers who owe Additional Medicare Tax on Medicare wages, Railroad Retirement Tax Act compensation, or self-employment income, as reported on IRS Form 8959 for tax year 2024.
What changed this year, and why
The 2024 Additional Medicare Tax thresholds and rate remain the same as in 2023. The thresholds are not indexed for inflation.
Common questions
- What is the Additional Medicare Tax rate for 2024?
- The rate is 0.9%. It applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income that exceed the threshold for your filing status.
- What are the 2024 income thresholds by filing status?
- Married filing jointly: $250,000. Married filing separately: $125,000. For single filers, heads of household, and qualifying surviving spouses, the threshold is lower - it is the same amount used for employer withholding. These thresholds are not adjusted for inflation.
- When does an employer begin withholding Additional Medicare Tax?
- An employer must begin withholding the 0.9% Additional Medicare Tax in the pay period in which an employee's Medicare wages or RRTA compensation exceed the withholding threshold in a calendar year, and must continue withholding it for the rest of that year.
- Did the thresholds change from 2023 to 2024?
- No. The rate and all filing-status thresholds for 2024 are the same as they were for 2023. The IRS does not adjust these amounts for inflation.
Every amount on this page is a published figure rather than yours. The Additional Medicare Tax calculator takes the number you enter and works it out against them, showing which published figure it used.
Your employer withholds at $200,000 whatever your filing status
Employers are required to begin withholding the Additional Medicare Tax in the pay period when an employee's wages or RRTA compensation for the year exceed $200,000, and must continue withholding in each subsequent pay period for the rest of that calendar year. This $200,000 withholding threshold applies to all employees regardless of their filing status. It does not matter whether an employee is married filing jointly with a higher threshold of $250,000 or married filing separately with a threshold of $125,000. The employer withholding rule is a flat $200,000 trigger. As a result, an employee whose actual liability threshold is higher than $200,000 may have too little withheld, while one whose threshold is lower may have too much withheld. Any excess Additional Medicare Tax that was withheld can be claimed as a credit against total tax liability on the employee's tax return by filing Form 8959. The 0.9% rate applies once income exceeds the threshold that corresponds to the taxpayer's filing status.
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.
2024 Instructions for Form 8959, Additional Medicare Tax (IRS)
These thresholds do not move with inflation
The Additional Medicare Tax thresholds are not adjusted for inflation. This means the threshold amounts are fixed by law and do not increase from year to year to keep pace with rising prices or wages. The threshold for married filing jointly is $250,000 and for married filing separately is $125,000. Because these amounts are not indexed, over time more taxpayers may find themselves subject to the 0.9% Additional Medicare Tax as nominal wages grow, even when their real purchasing power has not increased. There is no automatic annual adjustment mechanism like the one used for many other provisions in the tax code. Congress would need to pass new legislation to change the threshold amounts. Taxpayers should be aware that even modest wage increases over the years may eventually push their income above these unchanging thresholds.
Note. The threshold amounts below aren't indexed for inflation.
2024 Instructions for Form 8959, Additional Medicare Tax (IRS)
When Form 8959 is required
Form 8959 must be filed if any of the following conditions apply: Medicare wages and tips on any single Form W-2 exceed $200,000; RRTA compensation on any single Form W-2 exceeds $200,000; the total of Medicare wages and tips plus self-employment income exceeds the threshold amount for your filing status; or the total of RRTA compensation and tips exceeds the threshold amount for your filing status. For married couples filing jointly, both spouses' wages and self-employment income are included when determining whether the threshold is exceeded. The threshold amounts vary by filing status: $250,000 for married filing jointly, $125,000 for married filing separately, and $200,000 for single filers, head of household, and qualifying surviving spouse. Even if you do not owe Additional Medicare Tax, you must file Form 8959 if your Medicare wages or RRTA compensation from a single employer exceed $200,000, because your employer withheld the 0.9% tax and you need to account for it.
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. • Your total RRTA compensation and tips (Form W-2, box 14) (including the RRTA compensation and tips of your spouse, if married filing jointly) is greater than the threshold amount for your filing status in the Threshold Amounts for Additional Medicare Tax chart.
2024 Instructions for Form 8959, Additional Medicare Tax (IRS)
Wages and self-employment income are added together
For purposes of the Additional Medicare Tax, a taxpayer's Medicare wages and self-employment income are added together to determine whether total income exceeds the applicable threshold amount. This means that even if neither wages alone nor self-employment income alone surpasses the threshold, the combined total may trigger the 0.9% tax. If you have both wages and self-employment income, the threshold for applying the tax to self-employment income is reduced by the amount of Medicare wages received, but not below zero. A self-employment loss should not be considered when making this calculation. For married couples filing jointly, the wages and self-employment income of both spouses are combined, and the applicable threshold is $250,000. For married taxpayers filing separately, the threshold is $125,000. The combination rule ensures that taxpayers who earn income from both employment and self-employment are subject to the same overall limit as those with only one type of income.
Medicare wages and self-employment income are combined to determine if your income exceeds the threshold.
2024 Instructions for Form 8959, Additional Medicare Tax (IRS)
Railroad compensation is measured on its own
Railroad Retirement Tax Act (RRTA) compensation is measured on its own when determining Additional Medicare Tax liability. Unlike Medicare wages and self-employment income, which are combined and compared to the threshold together, RRTA compensation must be separately compared to the threshold. This means railroad employees cannot combine their RRTA compensation with wages from other employment or with self-employment income. The RRTA compensation stands alone for threshold purposes. The 0.9% tax applies to RRTA compensation that exceeds the threshold for the taxpayer's filing status. For married couples filing jointly, the threshold is $250,000, and for those married filing separately, it is $125,000. Employers must withhold the 0.9% Additional Medicare Tax on RRTA compensation paid in excess of a set amount in a calendar year, regardless of the employee's filing status or compensation paid by other employers.
RRTA compensation should be separately compared to the threshold.
2024 Instructions for Form 8959, Additional Medicare Tax (IRS)
Nonresident aliens and Americans abroad get no special exemption
The 2024 Additional Medicare Tax Threshold has no exemptions for nonresident aliens or U.S. citizens living outside the United States. Even if you live abroad or hold nonresident status, the same thresholds and rates apply to your income as they would to someone living stateside. Any wages, railroad compensation, or self-employment earnings that exceed the threshold for your filing status remain subject to the 0.9% tax. The $250,000 threshold for married filing jointly and $125,000 threshold for married filing separately apply equally regardless of where you reside.
There are no special rules for Additional Medicare Tax for nonresident aliens and U.S. citizens living abroad. Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold.
2024 Instructions for Form 8959, Additional Medicare Tax (IRS)
Withholding starts the pay period your wages cross $200,000, not spread over the year
An employer must start withholding the 0.9% Additional Medicare Tax the moment an employee's cumulative wages or RRTA compensation for the calendar year cross $200,000. Withholding does not wait until year-end and is not averaged across pay periods. Once the $200,000 mark is passed in a particular pay period, the employer begins deducting the tax from that paycheck and continues to deduct it from every subsequent paycheck for the rest of the year. The $200,000 withholding threshold is the same for every employee regardless of filing status; the lower thresholds of $250,000 for married filing jointly and $125,000 for married filing separately come into play only when the taxpayer computes their actual liability on Form 8959.
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.
2024 Instructions for Form 8959, Additional Medicare Tax (IRS)
Withheld Additional Medicare Tax comes back as a credit if you do not actually owe it
If your employer withheld Additional Medicare Tax during the year but you ultimately do not owe the tax - perhaps because your income fell below the threshold for your filing status - you can recover that money. The withheld amount is credited against your total tax liability when you file your return using Form 8959. This credit mechanism ensures that excess withholding does not become a permanent overpayment; instead, it reduces the total tax you owe or increases your refund for that tax year.
If you don't owe Additional Medicare Tax, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959.
2024 Instructions for Form 8959, Additional Medicare Tax (IRS)
Your wages eat into the threshold for your self-employment income, but RRTA pay does not
When you have both wage income and self-employment income, your wages reduce the threshold available for your self-employment earnings. The amount of Additional Medicare Tax that applies to your self-employment income is calculated after subtracting your Medicare wages from the threshold for your filing status. However, railroad retirement compensation does not reduce this threshold. If you have RRTA compensation instead of or in addition to wages, the full threshold remains available for calculating tax on your self-employment income.
If you have both wages and self-employment income, the threshold amount for applying Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the total amount of Medicare wages received. There is no equivalent rule for RRTA compensation.
2024 Instructions for Form 8959, Additional Medicare Tax (IRS)
Waiting to pay it with your return can trigger a penalty
The Additional Medicare Tax of 0.9% is not fully covered by employer withholding in every case. A taxpayer who owes the tax but has not had enough withheld - for example, because of self-employment income, or because combined spousal wages exceed the $250,000 threshold for married filing jointly or the $125,000 threshold for married filing separately - may plan to pay the balance when the return is filed. However, waiting to pay at filing time can trigger a penalty for failure to make estimated tax payments during the year. Taxpayers who expect to owe the tax should consider making quarterly estimated payments to avoid this penalty.
You may be subject to a penalty for failure to make estimated tax payments if you owe Additional Medicare Tax and wait to pay the tax with your tax return.
2024 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.
2024 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
- All other taxpayers
Single $200,000 Head of household $200,000 Qualifying surviving spouse $200,000