What is the additional Medicare payroll tax rate for high earners?

• A. 0.9% for earnings over $200,000 (individual) / $250,000 (joint)
• B. 0.9% for all earnings
• C. 0.45% for high earners
• D. 1.8% for high earners

Answer: (A)

The additional Medicare tax is a 0.9% extra payroll tax that applies only to wages above certain thresholds. For single filers, that threshold is $200,000, and for those filing jointly it’s $250,000. This tax is paid by the employee and is in addition to the regular 1.45% Medicare tax on all wages. So, for earnings above the threshold, the total Medicare tax on those wages is 1.45% + 0.9% = 2.35%. Wages below the threshold still incur only the standard 1.45% Medicare tax. The other options are incorrect because they imply the tax applies to all earnings, use the wrong rate, or misstate who pays it.