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When the Medicare payroll tax was first implemented in 1966, the maximum annual tax per worker was $46. Adjusted for inflation into 2017 dollars, this is $349. What is the maximum annual Medicare payroll tax per worker today?

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Due to a series of tax increases passed over time, the maximum Medicare payroll tax is now technically unlimited. Since 2013, workers earning above $250,000 per year pay 3.8% of all their earnings for this tax, and workers who earn more than $1.32 million per year pay more than $50,000 for this tax. This tax only funds Medicare hospital insurance, and other Medicare benefits like physician services, lab tests, and prescription drugs are paid through other taxes.

DocumentationMedicare FactsPayroll Tax History

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