Medicare taxes and surcharges
High-income taxpayers are subject to special taxes that help fund Medicare. If net investment income exceeds $200,000 for single individuals or $250,000 for married taxpayers, they will pay an additional 3.8% tax, boosting the maximum capital gains rate as high as 23.8% (20% + 3.8%).
Working taxpayers must pay an additional 0.9% in payroll taxes to help fund Medicare if their earned income exceeds the $200,000/$250,000 thresholds. High-income Medicare beneficiaries also pay larger monthly premiums for Part B and D when their modified adjusted gross income tops $85,000 for singles and $170,000 for married couples.
