A bill to amend the Internal Revenue Code of 1986 to apply inflation adjustments to the additional hospital insurance tax on high income taxpayers.

Sponsor: John Kennedy (Republican-LA)July 22, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Read twice and referred to the Committee on Finance.

Medicare tax thresholds for high-income taxpayers would adjust for inflation.

This bill would adjust the income levels for the extra Medicare tax paid by high-income taxpayers, accounting for inflation. Starting in 2027, these income thresholds would automatically increase each year. This means fewer people might pay the extra tax if their income doesn't keep pace with inflation.

What Would Change

Today, the income thresholds for the additional Medicare tax on high earners do not automatically adjust for inflation. If this bill becomes law, these income thresholds would be updated each year based on the cost of living, starting in 2027. This means the amount of income subject to the additional tax would rise over time.

Key Provisions

Would change the rules for the additional Medicare tax paid by high-income employees.
Would change the rules for the additional Medicare tax paid by high-income self-employed individuals.
Would make sure the income levels that trigger this extra tax are adjusted for inflation every year, starting in 2027.
Would round any adjusted income amounts up to the nearest $1,000.

View on Congress.gov

S 5085 · 119th Congress · July 22, 2026 · AI Summary by gemini-2.5-flash · 10/10

A bill to amend the Internal Revenue Code of 1986 to apply inflation adjustments to the additional hospital insurance tax on high income taxpayers.

What Would Change

Key Provisions

Lobbying Activity