Medicare Taxes
Need an affordable or
$0 premium Medicare Plan?*
The Medicare Tax and Why You Pay It
- How the Medicare Tax Works
- Why It Matters
The Medicare tax is a payroll tax that both employees and employers contribute to in order to fund the Medicare program. Created in 1965, Medicare provides health insurance primarily for people aged 65 and older, as well as certain individuals with disabilities or health conditions. Understanding this tax can give you a clearer picture of where your money goes and why it’s essential to the healthcare system.
How the Medicare Tax Works
- Employee Contribution: If you work for an employer, you’ll see a deduction labeled “Medicare tax” on your paycheck. This deduction is typically 1.45% of your wages.
- Employer Match: Your employer matches that 1.45%, effectively doubling the total contribution for each employee.
- Self-Employment: If you’re self-employed, you cover both portions—2.9% of your net earnings—although you may qualify for a deduction on half of it.
Additional Medicare Tax
High earners (income above certain thresholds) pay an extra 0.9% on top of the standard 1.45%. This additional Medicare tax is not matched by employers; it’s paid solely by the employee.
Why It Matters
Find a $0 premium
Medicare plan today.
Speak with a licensed insurance agent
TTY 711, 24/7
Our Agents
How does it work?
Discover Plans
We’ll gather a few details to identify the best insurance plans in your area.
Personalized Review
Our team will review your information to find plans that match your needs.
Agent Name
Licenced Agent
Talk with a Licensed Agent
Our dedicated insurance professional will reach out to discuss your options.
Enroll with Confidence
We’ll help you complete enrollment quickly and easily in the plan you choose.
we’re here to all your questions
Over the years, we’ve helped countless seniors navigate their coverage choices and find the plan that works best for them.
1. How Can a Medicare Advantage Plan Fulfill My Healthcare Needs?
Medicare Advantage (Part C) typically bundles hospital, medical, and sometimes prescription drug coverage into a single plan. Many also include extra perks, such as dental or vision coverage. This can help lower your overall costs and streamline your benefits.
2. Do Any Plans Offer Surprising Extras?
Yes! Certain Medicare Advantage plans go beyond basic coverage to include perks like gym memberships, transportation to medical appointments, or allowances for over-the-counter items. These extras can make a significant difference in both convenience and savings.
3. Why Not Just Rely on Official Government Resources?
While sites like Medicare.gov are informative, the volume of information can be overwhelming. We make it easier by focusing on your specific health needs, location, and budget—so you won’t waste time sifting through every possible plan.
4. What If I Missed My Initial Enrollment Opportunity?
If you didn’t sign up for Medicare during your initial window, you may still qualify for a Special Enrollment Period (SEP) if you’ve had certain life changes (such as moving or losing other coverage). Otherwise, there are set times each year to enroll or switch plans—making it essential to know your options and deadlines.
