Additional 0.9% Medicare Tax on Earnings

Employees must pay an additional 0.9% Medicare tax on earnings that exceed a certain threshold. Thus, raising their top Medicare Tax rate to 2.35%. Self-employed individuals will also owe an additional 0.9% on all self-employment income in excess of the threshold. The threshold is $250,000 for joint filers, $125,000 for married filing separately, and $200,000 for all other filers.