Definitions for "Medicare Tax"
Used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of workers and retired workers are eligible to receive Medicare benefits upon reaching age 65.
Money used to pay health insurance for people who are 65 or older. Your employer withholds 1.45 percent from your wages and contributes a matching dollar amount to make a Medical Tax payment totaling 2.9 percent of your earnings.
Tax paid for Medicare. This amount is 1.45% of wages for employees and 2.9% of net profit for self-employed taxpayers.