What is an IRMAA surcharge?
Most people know that Medicare isn’t free — but fewer realize that what you pay depends on what you earned two years ago.
IRMAA stands for Income-Related Monthly Adjustment Amount. It’s a surcharge added on top of your standard Medicare premiums if your income exceeds certain thresholds. The Social Security Administration determines your IRMAA based on your Modified Adjusted Gross Income (MAGI) from your tax return two years prior.
Standard 2026 Medicare Premiums (what everyone pays):
- Part B (medical coverage): $202.90/month
- Part D (prescription drug): varies by plan, average $34.50/month
- Annual Part B deductible: $283
What IRMAA adds on top: If your 2024 MAGI exceeded $109,000 (single) or $218,000 (married filing jointly), you pay a surcharge on top of those standard rates. The surcharge increases across five tiers, with total Part B premiums ranging from $284.10 up to $689.90 per month at the highest income level. Part D surcharges range from $14.50 to $91.00 per month.
IRMAA is assessed per person — couples enrolled in Medicare each pay their own surcharge separately.
IRMAA Surcharge Calculator
Medicare sets your Part B & D premiums using your tax return from two years prior. Enter your MAGI to see your tier — and how much headroom you have before the next cliff.
Tony Markey, MBA, founded DIY Retiree to provide free retirement planning tools and straight-talk guidance for pre-retirees managing their own financial futures. Read more of his story here.