Medicare Tax: Five Things Every Worker Needs to Know

It is important to know how Medicare tax works since it's taken from your paycheck.

the word tax spelled out on wooden cubes
(Image credit: Getty Images)

While many are familiar with Medicare coverage, understanding Medicare tax, which involves everything from mandatory payroll deductions to additional taxes for high earners, is important for all workers, including those who are self-employed.

With that in mind, here are five things you need to know about Medicare tax, including what it is, who pays, and current rates.

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Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.