What is the current Medicare tax rate?

The current Medicare tax rate is established at 1.45% for employees. This applies to all covered wages without a cap on the earnings that are subject to this tax. The Medicare tax is designed to fund the Medicare program, which provides healthcare for individuals aged 65 and older, as well as for certain younger people with disabilities.

Additionally, high-income earners may be subject to an additional Medicare tax of 0.9% on wages exceeding a certain threshold, which is separate from the base tax rate of 1.45%. This combination helps to ensure that the Medicare program is adequately funded to meet the needs of beneficiaries.