2026 Additional Medicare Tax Threshold
For 2026, 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 2026-01-01Source: Topic no. 560, Additional Medicare tax (IRS)Verified 2026-09-04
Compared with 2025
Every figure on this page is unchanged from 2025.
| Item | 2025 | 2026 | 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
It applies to individuals, not to employers, and it has no employer match. Medicare wages, self-employment income, and railroad retirement compensation that exceed the threshold for your filing status are subject to it. Employers withhold it from an employee's wages above a single amount the IRS states separately, without regard to filing status, so withholding and liability do not line up for everyone: a married couple filing jointly can have the tax withheld before they owe any of it, and a married person filing separately can owe it before an employer has withheld anything. Form 8959 is where the two are reconciled. There are no special rules for nonresident aliens, or for U.S. citizens and resident aliens living abroad.
What changed this year, and why
Nothing moved for 2026. The Additional Medicare Tax rate is 0.9%, and the income above which it bites is $250,000 for a married couple filing jointly and $125,000 for a married person filing separately, the same amounts as for 2025. The IRS states the rate and the threshold table without attaching a year to either, which is the point: these amounts were written into the law as fixed figures and are not adjusted for inflation, so they have stayed where they were put while wage bases and brackets around them moved every year. The IRS says the tax helps fund the Affordable Care Act tax provisions, including the premium tax credit.
Common questions
- What is the Additional Medicare Tax rate for 2026?
- It is 0.9%. It is charged on Medicare wages, self-employment income, and railroad retirement compensation above the threshold for your filing status, and it is on top of the ordinary Medicare tax rather than a replacement for it.
- What are the 2026 Additional Medicare Tax thresholds?
- $250,000 for married filing jointly, $125,000 for married filing separately, and $200,000 for single filers, heads of household, and qualifying surviving spouses.
- Did the thresholds change from 2025?
- No. They were $250,000 and $125,000 for married couples filing jointly and separately in 2025, and they are the same for 2026. The thresholds are fixed in the statute and carry no inflation adjustment, so they do not move from year to year the way the social security wage base or the tax brackets do.
- Why did my employer withhold Additional Medicare Tax when I do not owe it?
- Because an employer withholds on wages above a single amount without regard to filing status, and must begin in the pay period in which an employee's wages for the year pass it, continuing each pay period to the end of the calendar year. A married couple filing jointly is not over their own threshold at that point. You settle the difference on Form 8959, which reports both the tax you owe and the Additional Medicare Tax that was withheld.
- How does it work if I have both wages and self-employment income?
- The IRS gives three steps. Figure the tax on any Medicare wages above the threshold for your filing status, without regard to whether any tax was withheld; reduce that threshold by the total Medicare wages you received, but not below zero; then figure the tax on any self-employment income above the reduced threshold. A self-employment loss is not taken into account, and railroad retirement compensation is compared to the threshold separately.
- Does it apply if I live abroad?
- Yes. The IRS says there are no special rules for nonresident aliens or for U.S. citizens and resident aliens living abroad. Their Medicare wages, railroad retirement compensation, and self-employment income are subject to the tax on the same terms, if paid in excess of the threshold for their filing status.
- Does my employer pay a matching share?
- No. The IRS says there is no employer match for Additional Medicare Tax, which is what separates it from the ordinary Medicare tax an employer and employee split. The employer's only role is withholding and reporting it.
- Which forms report it?
- Form 8959 computes the tax, and it is reported on Form 1040 or Form 1040-SR, on Form 1040-NR, or on Form 1040-SS. If you expect to owe it, the IRS suggests either asking your employer to withhold an additional amount of income tax on Form W-4 or making estimated tax payments, and points to Publication 505 for how to work either out.
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
Your employer must begin withholding the 0.9% Additional Medicare Tax in the pay period where your wages or compensation for the calendar year exceed $200,000, and must continue withholding it each pay period for the rest of that year. This $200,000 withholding threshold applies to all employees regardless of filing status - even if you are married filing jointly and your actual threshold is $250,000, or married filing separately with a $125,000 threshold. Because of this mismatch, some taxpayers will have too much withheld and some too little. Any excess Additional Medicare Tax withheld can be claimed as a credit against your total tax liability on your return by filing Form 8959. You cannot ask your employer to stop withholding once it is required to begin. The $200,000 withholding trigger applies separately at each employer: one employer does not take into account wages paid by another employer.
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.
2025 Instructions for Form 8959, Additional Medicare Tax (IRS)
These thresholds do not move with inflation
The threshold amounts for Additional Medicare Tax are fixed by statute and do not adjust for inflation. For 2026, the thresholds are $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. These amounts remain the same each year unless Congress changes the law. Because the thresholds are not indexed for inflation, more taxpayers may become subject to the 0.9% tax over time as wages and self-employment income rise with inflation, even if their real purchasing power stays the same. The $200,000 employer withholding threshold is also not adjusted for inflation, creating potential mismatches between what employers withhold and what taxpayers actually owe based on their filing status.
Note: The threshold amounts below aren’t indexed for inflation.
2025 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: your Medicare wages and tips from any single Form W-2 exceed $200,000; your RRTA compensation from any single Form W-2 exceeds $200,000; your combined Medicare wages, tips, and self-employment income (plus your spouse's if married filing jointly) exceed the threshold amount for your filing status; or your combined RRTA compensation (plus your spouse's if married filing jointly) exceeds the threshold amount for your filing status. The $200,000 amounts for wages and RRTA compensation apply regardless of filing status, while the threshold amounts vary by filing status. Even if you believe you do not owe Additional Medicare Tax, you must still file Form 8959 if your employer withheld any Additional Medicare Tax from your wages or RRTA compensation, so you can claim a credit for the amount withheld against your total tax liability.
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, 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.
2025 Instructions for Form 8959, Additional Medicare Tax (IRS)
Wages and self-employment income are added together
For purposes of determining whether you exceed the Additional Medicare Tax threshold, your Medicare wages and your self-employment income are added together. This combined total is then compared to the threshold amount that applies based on your filing status - $250,000 for married filing jointly, $125,000 for married filing separately, or $200,000 for all other taxpayers. If the combined amount exceeds the threshold, the 0.9% tax applies to the excess. A self-employment loss should not be used to reduce your Medicare wages for this calculation. The threshold for taxing self-employment income is reduced by the amount of your Medicare wages, so that wages and self-employment income are not taxed twice against the same threshold. Railroad Retirement Tax Act compensation is treated differently and is compared separately to the threshold rather than being combined with wages and self-employment income.
Medicare wages and self-employment income are combined to determine if your income exceeds the threshold.
2025 Instructions for Form 8959, Additional Medicare Tax (IRS)
Railroad compensation is measured on its own
Railroad Retirement Tax Act compensation is subject to Additional Medicare Tax to the extent it exceeds the threshold amount for your filing status. Unlike Medicare wages, which are combined with self-employment income to determine if the threshold is exceeded, RRTA compensation is compared separately to the threshold. If you have both wages and self-employment income, the threshold for applying the tax to self-employment income is reduced by your Medicare wages, but there is no equivalent reduction rule for RRTA compensation. This means RRTA compensation maintains its own separate threshold calculation. A railroad employer must withhold the 0.9% Additional Medicare Tax on RRTA compensation it pays to you in excess of $200,000 for the calendar year, regardless of your filing status and regardless of wages or compensation paid by another employer.
There is no equivalent rule for RRTA compensation.
2025 Instructions for Form 8959, Additional Medicare Tax (IRS)
Nonresident aliens and Americans abroad get no special exemption
Nonresident aliens and U.S. citizens living outside the United States are treated the same as any other taxpayer when it comes to the Additional Medicare Tax. There is no separate, more favorable threshold and no exclusion just because a person lives or works outside U.S. borders. Any wages, railroad compensation, or self-employment income that is already subject to regular Medicare tax is also subject to the 0.9% Additional Medicare Tax once it passes the threshold that applies to the taxpayer's filing status - $250,000 for married filing jointly, $125,000 for married filing separately, and $200,000 for single filers, heads of household, and qualifying surviving spouses. The foreign earned income exclusion and similar provisions do not remove these wages or self-employment earnings from the base used to measure the tax. In short, if the income is Medicare-taxed, the 0.9% surtax follows it, and the filing-status thresholds that apply to everyone else apply to Americans abroad and nonresident aliens too.
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.
2025 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 does not wait until the end of the year to see whether the employee has crossed the $200,000 withholding threshold. The moment an employee's wages or railroad compensation from that employer for the calendar year push past $200,000, withholding of the 0.9% Additional Medicare Tax must start in that same pay period and must continue in every pay period for the rest of the year. The rule is applied separately by each employer using only the wages or compensation it pays; one employer does not look at what another employer pays the same employee, and the employer does not consider the employee's filing status. Even a married-filing-jointly employee whose household threshold is $250,000 still has the 0.9% withheld once a single employer has paid that employee more than $200,000 during the year. The employee can't ask the employer to stop the withholding once it has started.
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.
2025 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 an employer has withheld the 0.9% Additional Medicare Tax because the employee's wages or railroad compensation from that employer crossed $200,000 during the year, but the employee's actual filing status and total income mean no Additional Medicare Tax is owed, the withheld amount is not lost. The taxpayer can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on the tax return by filing Form 8959. In other words, the tax paid through withholding is reconciled on the return: if the 0.9% was taken out but the taxpayer's combined Medicare wages, self-employment income, and filing-status threshold show nothing is owed, the withheld amount reduces whatever else the taxpayer owes or increases the refund. The employer, meanwhile, cannot be asked to stop the withholding once it is required to withhold.
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.
2025 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 wages and self-employment income, the threshold amount for applying the Additional Medicare Tax to your self-employment income is reduced (but not below zero) by the total amount of Medicare wages received. For example, a single filer facing the $200,000 threshold who also has Medicare wages sees that threshold cut dollar for dollar by the amount of those wages; any self-employment income above the reduced threshold is subject to the 0.9% tax. This rule prevents a taxpayer from using both full wage coverage and a full self-employment threshold to avoid the tax. A married couple filing jointly combines both spouses' Medicare wages to figure the reduction, using the $250,000 joint threshold. Someone filing married separately uses the $125,000 threshold. There is no equivalent rule for RRTA compensation, however. Railroad retirement wages do not reduce the self-employment threshold, so a person with RRTA compensation and self-employment income gets the full threshold for their filing status applied to the self-employment income, separately from the RRTA pay.
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.
2025 Instructions for Form 8959, Additional Medicare Tax (IRS)
Waiting to pay it with your return can trigger a penalty
The Additional Medicare Tax is not automatically covered by ordinary income-tax withholding. If a taxpayer expects to owe the 0.9% tax for 2026 and the employer has not withheld enough - or has withheld nothing - to cover it, the taxpayer may need to make estimated tax payments during the year. Waiting to pay the entire Additional Medicare Tax when the return is filed can trigger a penalty for failure to make estimated tax payments. Whether the penalty applies depends on the taxpayer's situation, and the calculation is worked out on Form 2210 (or Form 2210-F for farmers and fishers). Estimated tax payments made during the year apply to all taxes on the return, including the Additional Medicare Tax; the taxpayer cannot designate a payment as being for the 0.9% tax alone.
Estimated tax 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.
2025 Instructions for Form 8959, Additional Medicare Tax (IRS)
Two incomes that each stay under $200,000 can still combine past the joint threshold, and neither employer withholds
When both spouses in a married-jointly household earn wages, each employer only withholds Additional Medicare Tax once that individual employee's wages cross $200,000. If both spouses earn substantial wages but neither one separately reaches $200,000, neither employer withholds the tax - even though the couple's combined income may already exceed the $250,000 threshold that applies to joint filers. The IRS illustrates this with a married couple, Erin and Frank, who earn $150,000 and $175,000 respectively. Neither has wages that exceed $200,000, so their employers withhold nothing. But their combined $325,000 in wages surpasses the $250,000 joint threshold, making them liable for Additional Medicare Tax at the 0.9% rate on the $75,000 difference. To settle the amount owed, the couple must file Form 8959 when they file their joint return. This situation applies whenever two earners each stay below the $200,000 individual withholding trigger while their joint income tops $250,000.
Erin and Frank are married and file jointly. Erin has $150,000 in wages and Frank has $175,000 in wages. Neither Erin nor Frank has wages that exceed $200,000. Therefore, their employers didn’t withhold Additional Medicare Tax. However, their combined $325,000 in wages exceeds the $250,000 threshold for joint filers. Erin and Frank are liable for Additional Medicare Tax on $75,000 of wages ($325,000 in wages minus the $250,000 threshold).
2025 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.
Topic no. 560, Additional Medicare tax (IRS)
- Rate
A 0.9% Additional Medicare tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation
- Married filing jointly
$250,000 for married filing jointly;
- Married filing separately
$125,000 for married filing separately; and
- All other taxpayers
$200,000 for all other taxpayers.