What Is MED on a Pay Stub? Medicare Tax Rate, FICA, and Wage Rules
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Written by the ePaystubs Editorial Team · Last updated: June 2026
MED on a pay stub normally means Medicare tax. It is the Medicare portion of FICA and is generally withheld at 1.45% of an employee's Medicare-taxable wages. It may also appear as Medicare, FICA-MED, FICA Medicare, HI, or Med Tax.
Quick answer: MED is the Medicare payroll tax. Employees generally pay 1.45%, employers match another 1.45%, and the tax does not have the annual wage cap that applies to Social Security.
MED normally appears beside OASDI or Social Security in the tax section of a pay stub. Together, these deductions make up FICA. For the complete relationship between the two, read our guide to FICA on a pay stub.
MED stands for: Medicare tax.
Standard employee rate: 1.45% of Medicare-taxable wages.
Employer contribution: A matching 1.45%.
Annual wage cap: None.
Possible additional tax: An extra 0.9% can apply above statutory income thresholds.
What does MED stand for?
MED is a payroll abbreviation for Medicare. It identifies the Medicare Hospital Insurance tax withheld from an employee's wages.
Different payroll systems may use different labels for the same deduction:
| Pay stub label | What it normally means |
|---|---|
| MED | Medicare tax |
| Medicare | Employee Medicare tax withholding |
| FICA-MED | The Medicare portion of FICA |
| FICA Medicare | Medicare payroll tax |
| HI | Hospital Insurance tax, another name for Medicare tax |
| Med Tax | Medicare tax withholding |
Why is MED deducted from your paycheck?
Medicare tax helps fund the federal Medicare Hospital Insurance program. It is a required payroll tax for employees whose wages are subject to FICA.
The tax generally applies even if the employee currently has private health insurance or is not old enough to receive Medicare benefits. MED is a payroll tax rather than an individual health insurance premium.
What is the Medicare tax rate?
The standard Medicare tax rate is 1.45% for employees. Employers generally contribute a matching 1.45%, creating a combined standard rate of 2.9%.
| Contributor | Standard rate |
|---|---|
| Employee | 1.45% of Medicare-taxable wages |
| Employer | 1.45% of Medicare-taxable wages |
| Combined contribution | 2.9% |
For example, $2,000 of Medicare-taxable wages multiplied by 1.45% produces an employee Medicare deduction of $29.
$2,000 × 0.0145 = $29.00
The employer's matching contribution is not normally subtracted from the employee's pay. The IRS explains the standard rates in Tax Topic No. 751.
How MED fits into FICA
FICA consists of two federal payroll taxes:
- OASDI, which funds Social Security
- Medicare tax, which may appear as MED
The standard employee Social Security rate is 6.2%, while the standard employee Medicare rate is 1.45%. Together, they create the familiar 7.65% employee FICA rate before considering Additional Medicare Tax.
| FICA component | Standard employee rate | Annual wage cap |
|---|---|---|
| OASDI or Social Security | 6.2% | Yes |
| MED or Medicare | 1.45% | No |
| Combined standard rate | 7.65% | Different rules apply to each component |
Read what FICA means on a pay stub for a fuller explanation of the combined tax.
MED vs OASDI: What is the difference?
MED and OASDI are both parts of FICA, but they fund different programs and follow different wage-limit rules.
OASDI is the Social Security portion. It is generally withheld at 6.2% until an employee's Social Security wages reach the annual wage base. MED is generally withheld at 1.45% and has no comparable annual wage cap.
| Feature | MED | OASDI |
|---|---|---|
| Program funded | Medicare Hospital Insurance | Social Security |
| Standard employee rate | 1.45% | 6.2% |
| Annual wage cap | None | Applies up to the annual Social Security wage base |
| Possible additional employee tax | Yes, an extra 0.9% above applicable thresholds | No equivalent additional tax |
A high-earning employee may see OASDI withholding stop after reaching the annual Social Security wage base, while MED withholding continues. Learn more about the OASDI line on a pay stub.
Does Medicare tax have a wage cap?
No. Medicare tax does not stop after an employee reaches a particular annual wage amount. The standard 1.45% employee tax generally continues to apply to Medicare-taxable wages throughout the year.
This is different from Social Security tax, which only applies up to the annual Social Security wage base. The wage base can change each year, but the absence of a Medicare wage cap remains an important distinction.
What is Additional Medicare Tax?
Additional Medicare Tax is an extra 0.9% employee tax that can apply when Medicare wages, Railroad Retirement Tax Act compensation, and self-employment income exceed the applicable filing-status threshold.
| Filing status | Threshold |
|---|---|
| Single | $200,000 |
| Head of household | $200,000 |
| Qualifying surviving spouse | $200,000 |
| Married filing jointly | $250,000 |
| Married filing separately | $125,000 |
An employer must begin withholding the additional 0.9% after the wages it pays to an employee exceed $200,000 during the calendar year. The employer uses this $200,000 withholding trigger regardless of the employee's filing status or income from another employer.
The employee's final liability is based on the applicable filing-status threshold and is reconciled on the federal income tax return. The employer does not match the additional 0.9% tax.
The IRS provides more information in its Additional Medicare Tax questions and answers.
Why might MED be higher than 1.45%?
A Medicare deduction can appear higher than expected for several reasons:
- Additional Medicare Tax started after wages with that employer exceeded $200,000
- The amount includes a payroll adjustment from an earlier pay period
- The figure being reviewed is a year-to-date total rather than the current deduction
- The pay stub combines multiple Medicare-related amounts under one label
- The amount was compared with gross pay instead of Medicare-taxable wages
If you cannot reconcile the deduction, ask payroll to identify the Medicare wage base and rate used for that pay period.
A sample MED line on a pay stub
This fictional example shows MED beside the Social Security and federal income tax deductions. The figures are for illustration only.
Fictional example
Medicare-taxable wages$2,000.00
OASDI (Social Security)-$124.00
MED (Medicare)-$29.00
Federal income tax-$210.00
Remaining pay after listed taxes$1,637.00
The $29 MED deduction equals 1.45% of $2,000 in Medicare-taxable wages. It appears separately from OASDI because the two taxes follow different rates and wage-limit rules.
If you need to prepare an accurate payroll record, you can create a pay stub that lists Medicare, Social Security, and other applicable deductions. Every pay stub should contain real and accurate payroll information.
Do self-employed people pay Medicare tax?
Yes. Self-employed individuals generally pay both the employee and employer portions through self-employment tax. The standard Medicare component of self-employment tax is 2.9% of applicable net earnings from self-employment.
Additional Medicare Tax may also apply when combined Medicare wages and self-employment income exceed the applicable filing-status threshold. Unlike the standard self-employment tax calculation, the extra 0.9% does not have an employer-equivalent portion.
Eligible taxpayers may generally deduct the employer-equivalent portion of self-employment tax when calculating adjusted gross income. This deduction does not reduce the self-employment tax itself.
How to check MED on your pay stub
- Look for MED, Medicare, FICA-MED, or HI
- Find the Medicare-taxable wages for the pay period
- Multiply those wages by the standard 1.45% employee rate
- Check whether an additional 0.9% may have started
- Keep MED separate from the OASDI deduction
- Compare current and year-to-date figures carefully
- Ask payroll about any adjustment you cannot identify
Frequently asked questions
What does MED mean on my pay stub?
MED normally means Medicare tax. It is the Medicare portion of FICA withheld from Medicare-taxable wages.
Is MED the same as Medicare?
Yes. MED is a common payroll abbreviation for Medicare tax.
Is MED part of FICA?
Yes. FICA consists of the Social Security tax and Medicare tax. MED identifies the Medicare portion.
What is the Medicare tax rate?
The standard employee rate is 1.45% of Medicare-taxable wages. Employers generally match another 1.45%.
Does Medicare tax have a wage limit?
No. The standard Medicare tax does not have the annual wage cap that applies to Social Security tax.
What is the difference between MED and OASDI?
MED is Medicare tax, generally withheld at 1.45% without an annual wage cap. OASDI is Social Security tax, generally withheld at 6.2% up to the annual wage base.
Why is my Medicare tax higher than 1.45%?
Additional Medicare Tax, payroll adjustments, or comparing the deduction with the wrong wage figure can make it appear higher. Ask payroll for the calculation if the amount is unclear.
Does an employer match Additional Medicare Tax?
No. Employers generally match the standard 1.45% Medicare tax but do not match the additional 0.9% employee tax.
Do self-employed people pay Medicare tax?
Yes. The standard Medicare component of self-employment tax is generally 2.9% of applicable net earnings, and Additional Medicare Tax may also apply.
Related Pay Stub Guides
This article provides general information and is not legal, tax, or payroll advice. Payroll labels and tax rules can change. Check current IRS guidance or consult a qualified professional for advice about your situation.