Medicare Tax

Medicare Tax is a payroll tax that funds the Medicare program, which provides health insurance primarily for people aged 65 and older, as well as certain younger individuals with disabilities. Employees pay a 1.45% tax on their wages, and employers match this amount. High-income earners may pay an additional 0.9% Medicare surtax. This tax ensures that individuals receive medical care when they retire or if they have specific health conditions, contributing to the overall financial stability of the Medicare system.