The Additional Medicare Tax

The Affordable Care Act added the Additional Medicare Tax effective as of tax year 2013. This is a .9 percent tax on wages and self-employment income above a specific threshold. As of tax year 2021 these thresholds are:

Filing StatusIncome Threshold
Married filing jointly$250,000
Married filing separate$125,000
Head of household$200,000
Qualifying widow(er) with dependent child$200,000
Income thresholds for Additional Medicare Tax

All wages subject to the Medicare Tax, self-employment income and railroad retirement (RRTA) compensations are also subject to this tax if in excess of these thresholds.

It is possible that you may also be subject to the Net Investment Income Tax. This tax was also added under the rules of the Affordable Care Act. It provides for an additional 3.8 percent tax on net investment income.

High earners, be on the look out and work with your CPA or tax accountant to determine if you will be subject to either of these additional taxes.