Question

There is a salary cap on medicare taxes true or false

Answer 1

True. There is a salary cap on the amount of income subject to Medicare taxes. However, unlike Social Security taxes, which have an income limit (the wage base limit), there is no cap on earnings for the Medicare tax itself. All earned income is subject to the standard Medicare tax rate of 1.45%. Additionally, high-income earners may be subject to an additional 0.9% Medicare tax on earnings above a certain threshold ($200,000 for single filers, $250,000 for married couples filing jointly, as of 2023).