IRMAA Basics
Project Your IRMAA Bracket for Future Medicare Planning
Verified against SSA POMS as of August 25, 2026
The short answer
IRMAA Bracket Projection helps in estimating future Medicare Part B and D premium costs by determining the Income-Related Monthly Adjustment Amount (IRMAA) based on income. This planning considers thresholds determining additional costs.
Understanding IRMAA
The Income-Related Monthly Adjustment Amount (IRMAA) is an additional charge applied to Medicare Part B and Part D premiums for beneficiaries whose income exceeds certain thresholds. This amount is calculated based on your modified adjusted gross income (MAGI) from two years prior. Specifically, the MAGI is determined using the IRS form 1040 from two years before the premium year. For example, if you are applying for 2027 Medicare, the Social Security Administration (SSA) will request MAGI information from the IRS from the 2025 tax year.
[SOURCE GAP: Need section number for IRMAA determination criteria]Income Thresholds for IRMAA
For 2026, the IRMAA thresholds for Medicare Part B and D start above $109,000 for individuals and above $218,000 for joint filers. The income thresholds determine whether an IRMAA applies and its corresponding amount.
MCR:node/26306 View source ›| 2024 MAGI — Single Filer | 2024 MAGI — Married Filing Jointly | Part B Monthly Premium | Part D Monthly Surcharge |
|---|---|---|---|
| ≤ $109,000 | ≤ $218,000 | $202.90 | $0.00 |
| $109,001 – $137,000 | $218,001 – $274,000 | $284.10 | +$14.50 |
| $137,001 – $171,000 | $274,001 – $342,000 | $405.80 | +$37.50 |
| $171,001 – $205,000 | $342,001 – $410,000 | $527.50 | +$60.40 |
| $205,001 – $499,999 | $410,001 – $749,999 | $649.20 | +$83.30 |
| $500,000 or above | $750,000 or above | $689.90 | +$91.00 |
Source: HI 01101.020
Projecting Future IRMAA Brackets
Projections of future IRMAA brackets require understanding historical income thresholds and anticipating potential income changes. Regularly reviewing IRS and CMS publications helps in projecting changes in income levels that affect IRMAA.
[SOURCE GAP: Need section number or guideline for projecting IRMAA brackets]Frequently asked
How does IRMAA affect my Medicare costs?
IRMAA adds an additional surcharge on top of the base premium for your Medicare Part B and D if your income exceeds certain levels.
Can I estimate future IRMAA bracket thresholds?
Yes, you can estimate future IRMAA costs by projecting your income and referring to historical adjustments in IRMAA thresholds. The formula used to calculate the increase in IRMAA thresholds for the next year is based on the 12-month average Consumer Price Index for Urban Consumers (CPI-U) ending in August of the current year. For example, if the annualized CPI-U average from August 2025 through August 2026 is 3%, the 2027 initial IRMAA threshold would be calculated as follows. The starting point is taking the initial threshold in 2026 which is $109,000. Adding 3% would bring the total to $112,270, which CMS rounds to the nearest $1,000, resulting in a finalized dollar threshold for Tier 1 of $112,000 for 2027. It's important to note that the Top Tier (Tier 5) threshold is currently fixed by law. For single filers earning $500,000 or more and married couples earning $750,000 or more, this tier will remain unchanged until the premium year 2028.
When are the IRMAA dollar thresholds determined and who determines them?
IRMAA dollar thresholds are determined annually. The Centers for Medicare & Medicaid Services (CMS) generally announces the updated IRMAA thresholds for the following premium year in mid-November.
How do I pay my IRMAA surcharges?
IRMAA surcharges for both Part B and Part D are deducted directly from a beneficiary's Social Security benefit check on a monthly basis. If a beneficiary is not yet collecting Social Security benefits, they will receive a quarterly bill.
How much does each IRMAA threshold add to my base Medicare premium for Part B and D?
There are five tiers or brackets for IRMAA surcharges, each adding a specific percentage to the base premium for Medicare Parts B and D. Tier 1 adds an additional 40% to the base premium. Tier 2 increases the premium by 100%. Tier 3 adds 160%, Tier 4 adds 220%, and Tier 5 adds 240%. For instance, if a beneficiary's Modified Adjusted Gross Income (MAGI) places them in the second tier of IRMAA, they will pay 100% more for their Part B premium. In 2026, with a national Part B premium of $202.90, a beneficiary in the second IRMAA tier will pay $405.80 monthly. This amount includes the base premium of $202.90 plus a 100% IRMAA surcharge of $202.90, totaling $405.80.