IRMAA Income Brackets 2026: Calculate Your Medicare Premium Surcharge
Use this guide to understand the assumptions, inputs, results, and next steps behind the calculator.
The Medicare Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge that higher-income beneficiaries pay in addition to their standard Part B and Part D premiums. This adjustment can significantly increase your retirement healthcare costs, with the highest earners paying over $600 extra per month for Part B alone. Understanding these income thresholds is critical for anyone planning their retirement income strategy.
This calculator uses projected 2026 IRMAA brackets to estimate your total monthly Medicare premium. It helps you see how your Modified Adjusted Gross Income (MAGI) from two years prior impacts your costs, allowing you to plan withdrawals and conversions more effectively. For retirees whose income is near an IRMAA cliff, proactive tax planning can save thousands of dollars per year.
2026 IRMAA Brackets & Surcharges (Projected)
Your IRMAA surcharge is determined by your MAGI from two years ago (e.g., your 2024 tax return determines your 2026 premiums) and your tax filing status. Below are the projected income brackets and monthly adjustments for 2026. Note that these are added to the standard Part B premium (projected to be ~$187.00/month) and your specific Part D plan premium.
For Single, Head of Household, and Married Filing Jointly Filers:
| 2024 Modified Adjusted Gross Income (MAGI) | Monthly Part B Surcharge | Monthly Part D Surcharge |
|---|---|---|
| $110,000 or less | $0.00 | $0.00 |
| $110,001 - $138,000 | $75.00 | $14.00 |
| $138,001 - $172,000 | $187.00 | $35.00 |
| $172,001 - $206,000 | $299.00 | $56.00 |
| $206,001 - $259,000 | $411.00 | $77.00 |
| $259,001 - $799,000 | $523.00 | $98.00 |
| $799,001 and above | $635.00 | $105.00 |
For Married Filing Separately Filers:
The rules are significantly stricter if you are married and file separately. The income thresholds are much lower, leading to higher surcharges at more modest income levels.
| 2024 Modified Adjusted Gross Income (MAGI) | Monthly Part B Surcharge | Monthly Part D Surcharge |
|---|---|---|
| $110,000 or less | $0.00 | $0.00 |
| $110,001 - $172,000 | $523.00 | $98.00 |
| $172,001 and above | $635.00 | $105.00 |
Note: These figures are projections based on historical inflation adjustments. The official numbers are typically released by the Centers for Medicare & Medicaid Services (CMS) in late 2025.
How IRMAA Is Determined: The Two-Year Lookback Rule
One of the most confusing aspects of IRMAA is that it isn't based on your current income. The Social Security Administration (SSA) uses the most recent tax return information available from the IRS, which is typically from two years prior.
- For 2026 premiums, the SSA will use your MAGI from your 2024 tax return.
- For 2027 premiums, the SSA will use your MAGI from your 2025 tax return.
This "lookback" rule has significant implications for new retirees. Your income from your final year of full-time work could trigger a high IRMAA surcharge for your first year on Medicare, even if your actual retirement income is much lower.
What is Modified Adjusted Gross Income (MAGI)?
For most people, MAGI for IRMAA purposes is simply your Adjusted Gross Income (AGI) from Form 1040 plus any tax-exempt interest income (like interest from municipal bonds).
MAGI = AGI + Tax-Exempt Interest
Sources of income that contribute to your AGI, and therefore your IRMAA calculation, include:
- Wages and salaries
- Pension and annuity income (use a pension income calculator to project this)
- Withdrawals from traditional 401(k)s, 403(b)s, and traditional IRAs
- Capital gains
- Taxable Social Security benefits
- Dividends and interest income
- Rental income
Understanding what counts towards MAGI is the first step in managing your future Medicare costs. A comprehensive retirement withdrawal calculator can help you model the tax impact of different income streams.
Strategies to Manage Your MAGI and Reduce IRMAA
Because IRMAA operates on "cliffs" where even one extra dollar of income can cost you thousands in additional premiums, proactive income planning is essential. The goal is to keep your MAGI below the next threshold.
Here are several strategies to consider, especially in the years leading up to Medicare eligibility:
- Strategic Roth Conversions: Converting funds from a traditional IRA or 401(k) to a Roth account creates taxable income in the year of the conversion. By doing this before the two-year lookback period begins (i.e., before you turn 63), you can pre-pay the taxes and reduce future Required Minimum Distributions (RMDs), which count towards MAGI.
- Use a Health Savings Account (HSA): Contributions to an HSA are tax-deductible, lowering your AGI. Withdrawals for qualified medical expenses are tax-free and do not count in your MAGI calculation.
- Qualified Charitable Distributions (QCDs): If you are over age 70½, you can donate up to $105,000 (in 2026) directly from your IRA to a qualified charity. A QCD satisfies all or part of your RMD but is excluded from your AGI, making it a powerful tool for reducing taxes on RMDs.
- Tax-Efficient Withdrawal Sequencing: In retirement, pull income from different account types strategically. In years you need to keep MAGI low, you might draw from Roth accounts (tax-free withdrawals don't count in MAGI), cash savings, or taxable brokerage accounts by selling assets with a high cost basis to minimize capital gains.
- Time Capital Gains Realization: If you need to sell an appreciated asset, consider selling it before your two-year lookback period begins. Spreading large gains over multiple years can also help you stay under an IRMAA threshold.
- Invest in Tax-Managed Funds: In your taxable brokerage accounts, using tax-managed mutual funds or ETFs can help minimize the annual dividend and capital gain distributions that add to your AGI.
Planning your monthly retirement income with these strategies in mind can provide more control over your healthcare expenses.
Appealing an IRMAA Decision: Life-Changing Events
If your income has dropped significantly since the tax year the SSA used for your IRMAA determination, you may not have to wait two years for your premiums to decrease. You can file an appeal using Form SSA-44 if you've experienced a "life-changing event."
Qualifying life-changing events include:
- Marriage
- Divorce or annulment
- Death of a spouse
- Work stoppage or reduction (e.g., you or your spouse retired)
- Loss of income-producing property due to disaster or other event beyond your control
- Loss of pension income
- Employer settlement payment
If you retire at 65, your 2024 income from work will likely trigger IRMAA for 2026. You can immediately file Form SSA-44, providing evidence of your retirement and a reasonable estimate of your lower 2026 income. If approved, the SSA will recalculate your premium based on your more recent, lower income. This is a crucial step for new retirees to avoid overpaying for Medicare.
Frequently Asked Questions About IRMAA
What is Modified Adjusted Gross Income (MAGI) for IRMAA?
For IRMAA, MAGI is your Adjusted Gross Income (AGI) from your federal tax return plus any tax-exempt interest income you received. It includes income from wages, pensions, investments, and traditional retirement account withdrawals.
Does income from a Roth IRA count towards IRMAA?
No. Qualified distributions from a Roth IRA or Roth 401(k) are tax-free and are not included in your AGI. This makes Roth accounts a powerful tool for managing your MAGI in retirement to stay below IRMAA thresholds.
How does filing "Married Filing Separately" affect IRMAA?
Filing as Married Filing Separately (MFS) while living with your spouse results in much stricter IRMAA brackets. As shown in the table above, the surcharges begin at a lower income level and escalate much more quickly, making it a very disadvantageous filing status for Medicare purposes.
Are Required Minimum Distributions (RMDs) included in my MAGI?
Yes. Withdrawals from traditional IRAs, 401(k)s, and other pre-tax retirement accounts to satisfy your RMDs are taxed as ordinary income and are fully included in your AGI and MAGI. Planning for RMDs is a key part of IRMAA management; read more about RMD strategies.
Can I avoid IRMAA by delaying Social Security?
Delaying Social Security does not directly avoid IRMAA, as IRMAA is based on your total MAGI from all sources, not just Social Security benefits. However, delaying benefits may allow you to live on other, non-MAGI-counting assets (like Roth funds), which could help keep your overall MAGI below an IRMAA threshold.
How far back does Social Security look at my income for IRMAA?
The Social Security Administration uses a two-year lookback period. For your 2026 Medicare premiums, they will use the MAGI reported on your 2024 federal income tax return.
What happens if my income is just $1 over an IRMAA threshold?
IRMAA brackets are "cliffs." If your MAGI is even one dollar over a threshold, you are pushed into the next tier and must pay the full higher surcharge for the entire year. This makes precise income planning extremely valuable. A small, avoidable distribution could end up costing you thousands.
Next Steps for Your Retirement Healthcare Planning
Understanding your potential IRMAA is a critical piece of your financial puzzle. Use this calculator to see where you stand and model how changes in your income could affect your premiums. From here, consider exploring other tools to build a complete picture of your retirement healthcare expenses.
- Estimate your total medical spending with the Retirement Healthcare Cost Calculator.
- If retiring before 65, plan your coverage with the Health Insurance Bridge Calculator.
- Factor in potential long-term care needs using the Long-Term Care Cost Calculator.
Last updated: July 2026