Did you know the IRMAA brackets and income thresholds for 2026 could add hundreds of dollars to your monthly Medicare costs?
If you earned over $109,000 as an individual in 2024, you’re likely facing higher Part B payments in 2026. The same applies to married couples earning over $218,000.
Here’s the catch most people miss: your 2024 income determines what you’ll pay two years later. That bonus, property sale, or retirement account withdrawal you took in 2024 will affect your wallet in 2026.
We’ve seen countless high-income Medicare beneficiaries caught off guard by unexpected bills. This happens because they didn’t understand how the Income-Related Monthly Adjustment Amount works.
IRMAA Brackets 2026 Key Highlights
- The 2026 Medicare Part B premium increase takes effect January 1, 2026, with the standard monthly amount rising to $202.90 (up $17.90 from 2025’s $185.00), automatically deducted from Social Security checks or billed quarterly for those not yet receiving benefits.
- 2026 Part B premiums range from the standard base amount to over $600/month. This depends on your 2024 income. Five IRMAA brackets affect individuals earning $109,000+ and couples earning $218,000+.
- Life-changing events like retirement, divorce, or loss of income may qualify you for an IRMAA reduction. You must file Form SSA-44 promptly with proper documentation.
- Strategic tax planning can help you avoid IRMAA spikes. Qualified charitable distributions, Roth conversion timing, and income deferral strategies impact your Modified Adjusted Gross Income calculations.
Let’s break down exactly how IRMAA works and what you can do about it.
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What Is IRMAA Medicare and Why Does It Exist?
IRMAA stands for Income-Related Monthly Adjustment Amount, a surcharge added to your Part B and Part D costs if your income exceeds certain thresholds.
Think of it as a progressive contribution system where higher earners pay more to help fund Medicare. This isn’t a penalty or punishment. It’s designed so those with greater financial resources contribute proportionally more to the program.
IRMAA only affects about 7-8% of all Medicare beneficiaries. If you’re in this group, you’re among the higher-income retirees. You earned enough two years prior to trigger the adjustment.
Standard Medicare Part B Premium for 2026
The standard monthly amount for 2026 is $202.90, with an annual deductible of $283.
This represents a significant jump from 2025, when the base cost was $185.00 per month with a $257 deductible.
That’s an increase of $17.90 per month, or nearly 10% more than last year. If your income falls below the IRMAA thresholds, you’ll only pay this standard rate, which is typically deducted automatically from your Social Security checks.
IRMAA Brackets and Income Thresholds for 2026 (A Complete Overview)
The IRMAA brackets and income thresholds for 2026 are based entirely on your 2024 Modified Adjusted Gross Income.
This two-year lookback period catches many people by surprise. What you earned in 2024 directly determines what you’ll pay for Medicare Part B in 2026. The Social Security Administration uses your tax return from two years prior to calculate your adjustment amount.
Here’s the complete breakdown of the 2026 IRMAA brackets and income thresholds:
| 2024 Income (Individual) | 2024 Income (Joint) | Monthly IRMAA | Total Part B Cost |
|---|---|---|---|
| $109,000 or less | $218,000 or less | $0.00 | $202.90 |
| $109,001 to $137,000 | $218,001 to $274,000 | $81.20 | $284.10 |
| $137,001 to $171,000 | $274,001 to $342,000 | $202.90 | $405.80 |
| $171,001 to $205,000 | $342,001 to $410,000 | $324.60 | $527.50 |
| $205,001 to $500,000 | $410,001 to $750,000 | $446.30 | $649.20 |
| Above $500,000 | Above $750,000 | $487.00 | $689.90 |
How MAGI Is Calculated for IRMAA Bracket Purposes?
Your Modified Adjusted Gross Income determines whether you’ll face IRMAA surcharges.
MAGI includes more than just your salary. It counts wages, self-employment income, interest, dividends, and capital gains.
It also includes traditional IRA distributions, rental income, and taxable Social Security benefits. All of these factors into Social Security’s bracket calculation.
What counts toward MAGI:
- Wages and self-employment income
- Interest and dividend income
- Capital gains from investments or property sales
- Traditional IRA and 401(k) distributions
- Rental income and royalties
What doesn’t count toward MAGI:
- Qualified Roth IRA withdrawals
- Qualified HSA distributions
- Life insurance proceeds
- Gifts and inheritances
A property sale, large bonus, or retirement account conversion in 2024 could push you into a higher bracket for 2026. This is where Medicare cost planning for retirees becomes critical. It helps you avoid surprise increases.
When and How You’ll Be Notified?
Social Security will send you an IRMAA Initial Determination Notice if you owe additional amounts.
These notices typically arrive in late 2025 or early 2026, before your new rates take effect. The notice explains your income bracket and the additional monthly amount you’ll pay. It also shows how it was calculated based on your 2024 tax return.
Your IRMAA amount is usually deducted automatically from your Social Security benefits. If you don’t receive Social Security yet, you’ll receive a quarterly bill directly from Medicare. You must pay it on time.
Life-Changing Events That May Qualify for IRMAA Reduction
Certain life changes may allow you to request a reduction in your IRMAA surcharge.
If your income dropped significantly due to a qualifying event, you don’t have to wait two years for relief. Social Security recognizes that major life transitions can significantly alter your financial situation.
This can make your outdated tax return an inaccurate measure of your current ability to pay.
Qualifying life-changing events include:
- Marriage or divorce
- Death of a spouse
- Work stoppage or reduction
- Loss of income-producing property
- Loss of pension income
- Employer settlement payment
To request an adjustment, complete Form SSA-44 (Medicare Income-Related Monthly Adjustment Amount Life-Changing Event).
Strategies to Manage or Reduce IRMAA Brackets in 2026
Smart tax planning can help you minimize or avoid IRMAA surcharges in future years.
Work with your financial advisor to manage your Modified Adjusted Gross Income strategically. Consider timing Roth conversions during lower-income years to avoid IRMAA spikes.
Qualified charitable distributions from your IRA don’t count toward MAGI. This makes them an excellent tool for charitable giving while keeping your income below IRMAA thresholds.
Effective IRMAA management strategies:
- Strategic Roth conversion timing in low-income years
- Qualified charitable distributions (QCDs) for charitable giving
- Income timing and deferral when possible
- Tax-efficient investment allocation
- Coordinating withdrawals across account types
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How Medigap Fits Into High-Income Medicare Planning?
Medigap supplement plans complement your Medicare by covering out-of-pocket expenses.
These plans pay for copays, coinsurance, and deductibles that Original Medicare doesn’t cover. However, they don’t reduce your Part B monthly amounts or IRMAA surcharges.
Think of Medigap as protection against unexpected medical costs. It is not a way to lower your base Medicare expenses.
High-income Medicare beneficiaries often choose comprehensive plans like Plan G or Plan N for predictable healthcare spending. You’ll still pay your Part B amount plus any IRMAA adjustment. However, Medigap provides peace of mind by eliminating most surprise medical bills.
Take Control of Your Medicare Costs Today
The IRMAA brackets and income thresholds for 2026 don’t have to catch you off guard.
Now that you know how the two-year lookback works and what income counts toward your surcharge, you can plan ahead. You don’t have to react to surprise bills.
Whether you’re facing IRMAA for the first time or looking to reduce future costs, the right strategies make all the difference.
Confused about your Medicare costs?
Talk to a MediGap Advisors specialist who can help you understand your situation and explore supplemental options that fit your needs.
IRMAA Brackets Frequently Asked Questions
When will my IRMAA surcharge automatically stop if my income drops?
Your IRMAA adjusts automatically two years after your income drops below the threshold. If you earned less in 2025, your 2027 costs will reflect that lower income without filing an appeal.
Can I prepay my IRMAA amount to avoid monthly deductions?
No, IRMAA must be paid monthly either through Social Security deductions or quarterly Medicare bills. There’s no option to prepay the entire year’s surcharge in advance.
Does IRMAA apply to Medicare Advantage plans?
Yes, IRMAA surcharges apply regardless of whether you have Original Medicare or Medicare Advantage. The additional amount is based on your income, not your plan type.
Will my spouse’s income affect my IRMAA if we file separately?
If you’re married but file separately and lived together at any point during the year, you’ll pay the highest IRMAA bracket regardless of individual income amounts.
Whitney Kline is one of your Personal Benefits Managers at Medigap Advisors. She loves working for Medigap Advisors especially helping clients choose the right Medicare plan.