Where your taxes goFY2025
What percentage of your taxes goes to Medicare?
About 14%, or 14¢ of every federal dollar: Medicare cost $996.7 billion in FY2025.Medicare was the 2nd largest of 17 federal budget functions, down from 14.2% in FY2015.
On your tax bill
Your federal tax times the FY2025 share (13.9%).
| Federal tax you pay | Goes to Medicare |
|---|---|
| $2,000 | $277 |
| $5,000 | $693 |
| $10,000 | $1,386 |
| $20,000 | $2,773 |
| $50,000 | $6,932 |
Share by year
Medicare: share of federal spending
Percent of gross function outlays · * = fiscal year to date
Amounts and shares as a table
| Year | Outlays | Share |
|---|---|---|
| FY2015 | $546.2 billion | 14.2% |
| FY2016 | $594.5 billion | 14.9% |
| FY2017 | $597.3 billion | 14.6% |
| FY2018 | $588.7 billion | 14.0% |
| FY2019 | $651.0 billion | 14.2% |
| FY2020 | $776.2 billion | 11.7% |
| FY2021 | $696.5 billion | 10.0% |
| FY2022 | $755.1 billion | 11.6% |
| FY2023 | $847.5 billion | 13.5% |
| FY2024 | $874.1 billion | 12.7% |
| FY2025 | $996.7 billion | 13.9% |
| FY2026* | $979.3 billion | 14.1% |
U.S. Treasury, Monthly Treasury Statement, Table 9.
Dollars by year
Federal outlays on Medicare
Nominal dollars · * = fiscal year to date
U.S. Treasury, Monthly Treasury Statement, Table 9.
What this covers
What the federal budget function "Medicare" covers: Hospital insurance (Part A), medical insurance (Part B), prescription drugs (Part D) and Medicare Advantage, net of the premiums enrollees pay.
In FY2026 through August 2026, the share was 14.1% ($979.3 billion so far). Shares are of the sum of all budget functions with positive outlays, the same base as our federal budget pie chart and the tax calculator.
Medicare hospital insurance (Part A) has its own 2.9% payroll tax (split between worker and employer); Parts B and D are paid mostly from general revenue and enrollee premiums.
Other parts of the budget
Share of FY2025 federal spending.
- Social Security22%
- Health care and Medicaid14%
- Interest on the national debt13%
- The military13%
- Welfare, food stamps and income support10%
- Veterans5%
- Roads and transportation2%
- The environment and natural resources1%
- Law enforcement, courts and prisons1%
- Education1%
- Agriculture and farm subsidies1%
- Foreign aid and diplomacy1%
- NASA and science1%
Questions and answers
- What percentage of taxes goes to Medicare?
- About 14%: Medicare took 13.9% of federal spending in FY2025 ($996.7 billion). Federal spending is paid for by all taxes plus borrowing, so the same share applies to your federal tax.
- How much does the US spend on Medicare?
- $996.7 billion in fiscal year 2025 (October 2024 to September 2025), according to the Monthly Treasury Statement. That is about $2,916 for every person in the United States.
- How much of my taxes goes to Medicare?
- $139 of every $1,000 you pay in federal tax, using FY2025 spending shares.
- Has spending on Medicare gone up?
- In FY2025 it was 13.9% of federal spending, down from 14.2% in FY2015. In dollars it went from $546.2 billion to $996.7 billion.
Sources and notes
- U.S. Department of the Treasury, Monthly Treasury Statement, Table 9, September 2025 (year-end) and later months, Fiscal Data API. Public domain.
- Population: U.S. Census Bureau, Vintage 2025 estimates, 50 states and DC, July 2025.
- What each function covers: the budget function definitions of the Office of Management and Budget, summarised.