Medicare tax rate 2026, plus every federal and state payroll tax rate

2026 payroll tax rates at a glance

Medicare

1.45% + 1.45%employer and employee, no wage cap

Additional Medicare

0.9%employee only, withheld on wages over $200,000

Social Security

6.2% + 6.2%on the first $184,500 in 2026

2027 wage base

$192,300Social Security, per SSA (Oct 14, 2026)

These federal taxes apply to every W-2 paycheck. State income tax, state unemployment tax (SUTA) and state paid leave premiums come on top. Both state tables are further down this page, and our guide to employer payroll taxes explains who owes what.

Medicare tax rate for 2026

Medicare tax (the HI part of FICA) is 1.45% of wages from the employee and another 1.45% from the employer. Unlike Social Security, it has no wage base, so it applies to every dollar of pay. The SSA 2027 fact sheet lists Medicare maximum taxable earnings as "No limit" for both 2026 and 2027.

• $50,000 salary: $50,000 x 1.45% = $725 withheld from the employee and $725 paid by you.
• $150,000 salary: $150,000 x 1.45% = $2,175 from each side.
• $300,000 salary: employer Medicare is $300,000 x 1.45% = $4,350. The employee pays the same $4,350 plus Additional Medicare Tax of ($300,000 minus $200,000) x 0.9% = $900, for $5,250 in all.

Self-employed people pay both halves through self-employment tax: the SSA lists the self-employed FICA rate as 15.30% for 2026 and 2027. If you are deciding between hiring an employee and a contractor, our W-2 vs 1099 guide covers who pays which half. For a plain definition of the combined tax, see what FICA is and how the 7.65% rate works.

Additional Medicare Tax: 0.9% over $200,000

The Additional Medicare Tax is a 0.9% tax on wages above a threshold set by filing status. It is paid by the employee only. Employers do not match it (IRS Topic 560, updated October 9, 2026).

The employer rule: withhold at $200,000, whatever the filing status

You must start withholding the 0.9% in the pay period when an employee's wages from you pass $200,000 for the calendar year, and keep withholding through December. The IRS says this applies regardless of filing status or wages from another job, so you cannot use a spouse's income or a W-4 to change it. Example: an employee paid $220,000 has ($220,000 minus $200,000) x 0.9% = $180 withheld. Your employer Medicare stays at $220,000 x 1.45% = $3,190.

The filing-status thresholds settle on the tax return. A married couple who each earn $150,000 has no Additional Medicare Tax withheld, because neither paycheck passes $200,000, but their joint wages of $300,000 are $50,000 over the $250,000 joint threshold, so they owe $50,000 x 0.9% = $450 when they file.

Social Security tax and wage base by year

Social Security tax is 6.2% from the employee and 6.2% from the employer, on wages up to the yearly wage base (the SSA calls it the contribution and benefit base). Once an employee's wages with you reach the base, both sides stop for the rest of the year. The base for 2026 is $184,500 and for 2027 it is $192,300.

The 2027 base is $7,800 higher than 2026 ($192,300 minus $184,500), which adds $7,800 x 6.2% = $483.60 of tax per side for anyone paid at least $192,300.

FUTA tax rate for 2026 and the California credit reduction

The federal unemployment tax (FUTA) is 6.0% on the first $7,000 of each employee's wages. Employers that pay state unemployment tax on time get a credit of up to 5.4%, so the usual net rate is 0.6%. That is $7,000 x 0.6% = $42 per employee per year. Employees pay none of it (IRS Topic 759, updated Sep 24, 2026).

Credit reduction states

When a state borrows from the federal government to pay unemployment benefits and does not repay on time, employers in that state lose part of the 5.4% credit. The Department of Labor publishes a potential list each January and the final list after November 10.

If California lands at 1.5%, a California employer pays an extra $105 per employee earning $7,000 or more ($7,000 x 1.5%). A 20-person team would owe $2,100 more than the 0.6% rate suggests. If the 5.3% figure applies instead, the extra is $7,000 x 5.3% = $371 per employee. The extra amount is not deposited during the year. It is paid with Form 940 for 2026, due February 1, 2027.

Employer payroll tax rates: what you pay per employee

The employer side of federal payroll tax is about 7.7% of pay for most salaries. It drops above the Social Security wage base because only Medicare keeps going. This table uses the 0.6% FUTA rate; add $105 per employee in California if the 1.5% credit reduction is confirmed.

Federal taxes are only part of the bill. A real hire also carries SUTA, workers comp, any state paid leave premium, benefits and your payroll provider's fee. The employer payroll tax calculator adds those lines for any state, and what payroll services cost covers the provider side.

State income tax rates 2026

Forty-one states and DC tax wages. Nine do not: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Fifteen states use one flat rate, from 2.50% in Arizona to 4.99% in Georgia, and 26 states plus DC use graduated brackets. The highest top rate is California's 13.30% on taxable income over $1,000,000: its 12.3% top bracket plus the 1% Mental Health Services Tax, which EDD builds into its 2026 withholding tables. Next come Hawaii (11.00%), New York (10.90% over $25,000,000) and New Jersey and DC (10.75% over $1,000,000).

Download state income tax rates (CSV)

How to read the table: these are tax rates on taxable income, not withholding rates. The lowest rate is the first rate above 0%; several states tax a first slice at 0% (Missouri up to $1,348, Mississippi up to $10,000, Ohio up to $26,050). Top rate starts at is single-filer taxable income. Washington's capital gains tax and New Hampshire's former interest and dividends tax (repealed for periods after December 31, 2024) do not apply to wages, so both states show none. Local income taxes are extra in places such as New York City, Maryland counties, Ohio and Pennsylvania localities and Michigan cities; see Michigan city income taxes for one example.

2026 rate changes we confirmed with the states

• Georgia: flat rate cut from 5.19% to 4.99% by HB 463, signed May 11, 2026 and retroactive to January 1, 2026 (Georgia DOR 2026 Employer's Tax Guide).
• South Carolina: two brackets for 2026, 1.99% below $30,000 and 5.21% from $30,000; the 2025 top rate was 6% (SCDOR).
• Ohio: first flat-rate year: no tax up to $26,050, then $332 plus 2.75% of income over $26,050, replacing a 2025 top rate of 3.125% (Ohio Revised Code 5747.02; Ohio DOT).
• West Virginia: every bracket cut 5%, top rate now 4.58%, under SB 392, signed March 31, 2026 and retroactive to January 1 (WV Tax Division).
• Montana: top rate cut from 5.9% to 5.65% (Montana DOR).
• Oklahoma: top rate cut from 4.75% to 4.5% and six brackets folded into three, from tax year 2026: 0% up to $3,750, 2.5% to $4,900, 3.5% to $7,200 and 4.5% above $7,200 for single filers (HB 2764; Oklahoma Tax Commission 2025 legislative summary and 2026 withholding tables).
• Utah: cut from 4.5% to 4.45% by SB 60, retroactive to January 1, 2026.
• New York: the lower brackets were cut; the first rate is now 3.90% (Tax Law 601; NYS DTF).
• Increases at the top: Maine adds a 2% surcharge on taxable income over $1,000,000 (single), making its top rate 9.15%. Maryland added 6.25% and 6.50% brackets over $500,000 and $1,000,000. Massachusetts' 4% surtax now starts at $1,107,750.
• No change: Kansas announced no rate cut for 2026 because revenue fell short of the trigger (KDOR Notice 25-06).

SUTA wage base 2026: the state side

Every state also charges unemployment tax on a wage base it sets. For 2026 the bases run from $7,000 (California, Florida, Arkansas, Tennessee and Louisiana) to $78,200 in Washington. New employer rates run from 1.0% in states such as North Carolina, Delaware and Iowa to 4.1% in New York. A few states, including Alaska, New Jersey and Pennsylvania, also take a small unemployment contribution from the employee.

All 50 states and DC are in the SUTA rates by state table, with lowest and highest experience rates and the surcharges states add. You can also download the full set:

Download SUTA wage bases and rates (CSV)

Withholding rates and reporting thresholds for 2026

The higher 1099-NEC threshold matters most if you pay many small contractors. Our W-2 vs 1099 guide covers the classification tests that decide whether someone is a contractor at all, and the nanny payroll comparison covers household employers.

2026 retirement, HSA and QSEHRA limits

For plan costs, see small business 401(k) providers compared. If you reimburse premiums instead of offering a group plan, the QSEHRA guide and ICHRA guide explain the caps and class rules.

Deposit schedules and filing deadlines

Your deposit schedule for Social Security, Medicare and withheld income tax depends on how much tax you reported in the lookback period. For 2026 that period is July 1, 2024 to June 30, 2025. For 2027 it is July 1, 2025 to June 30, 2026.

• $50,000 or less in the lookback period: monthly depositor. Deposit by the 15th of the following month.
• More than $50,000: semiweekly depositor. Wednesday, Thursday or Friday paydays are due the next Wednesday. Saturday through Tuesday paydays are due the next Friday.
• $100,000 next-day rule: if you pile up $100,000 or more of tax on any day, deposit by the next business day. You then become a semiweekly depositor for the rest of the year and the next year.
• Under $2,500 for the quarter: you may pay with a timely filed Form 941 instead of depositing.
• FUTA: deposit when your liability for the quarter goes over $500, by the last day of the month after the quarter ends. Smaller amounts roll into the next quarter.

Source: IRS Topic 757 (last reviewed Oct 14, 2026). Late deposits carry penalties, and buyers report providers that missed them. Our best payroll software ranking compares each provider's tax filing guarantee and what it excludes.

Filing deadlines

W-2s have no automatic extension. A 30-day extension to file with SSA (Form 8809) is granted only in extraordinary cases, and you must e-file once you have 10 or more information returns in total. The payroll year-end checklist lists what to reconcile before January.

What is already known about 2027

• Social Security wage base: $192,300, up from $184,500. Rates stay 6.2% Social Security and 1.45% Medicare, 7.65% each (SSA 2027 fact sheet, certified October 14, 2026).
• COLA: Social Security benefits rise 3.6% for 2027. The quarter of coverage rises to $1,970, and the earnings test limit under full retirement age to $25,560 a year (SSA).
• Additional Medicare Tax: still 0.9% over $200,000 of wages; the thresholds are not indexed (IRS Topic 560).
• 1099-NEC: the $2,000 threshold may be adjusted for inflation starting in 2027 (IRS 1099 instructions).
• State income tax: Hawaii adds a 13% bracket over $500,000 for single filers from tax year 2027 (Act 24, SLH 2026, per the Hawaii Department of Taxation). North Carolina says further rate cuts may apply from 2027 if its revenue triggers are met. Maine indexes its $1,000,000 surcharge threshold from 2027.
• SUTA: states that have published 2027 wage bases: New Jersey $46,400, Nevada $45,400, Wyoming $34,900, Wisconsin $14,000 and Pennsylvania $10,000 (unchanged). Most states publish in November and December.
• FUTA: the final 2026 credit reduction list arrives after November 10, 2026 and affects the Form 940 due February 1, 2027.
• Minimum wage: thirteen states have announced 2027 increases, including California ($17.40), Washington ($17.73) and Connecticut ($17.48). See our state minimum wage tracker.

We recheck these figures when the agencies publish and log each change below.

Use this data

For a single figure, the agency named in the table note (IRS, SSA, DOL or the state revenue department linked in the CSV) is the primary source.

Change log

• October 18, 2026: Confirmed the 2027 Social Security wage base ($192,300) and 3.6% COLA on ssa.gov (announced October 14, 2026). Added the Medicare and Additional Medicare Tax sections with IRS Topic 560 thresholds, the Social Security wage base by year (2017 to 2027), and the 2026 state income tax table for all 50 states and DC with a CSV download. Added the SUTA CSV download.
• October 16, 2026: Checked the federal rates, FUTA credit reduction list, SUTA examples, benefit limits and filing deadlines against IRS, SSA and DOL pages.