Taxes
Medicare tax
Medicare has no cap, and an extra 0.9 percent applies above the threshold.
The Formula
Medicare = Wages x 1.45% + max(0, Wages - Threshold) x 0.9%
Medicare has no cap, and an extra 0.9 percent applies above the threshold.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| W | Wages | currency | Gross annual wages. |
| T | Threshold | currency | Additional Medicare threshold for the filing status. |
What Each Symbol Means
Wcurrency
Wages
Gross annual wages.
Tcurrency
Threshold
Additional Medicare threshold for the filing status.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate social security tax page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Social Security Tax, filed under Finance. Every number the guide produces comes from substituting into this one line.