Medicare IRMAA Calculator 2026: Estimate Your Medicare Surcharge by Income

The term “IRMAA” can feel like a penalty for a lifetime of hard work and saving. It’s the Income-Related Monthly Adjustment Amount, a surcharge that can add thousands of dollars to your annual Medicare premiums. But it doesn’t have to be a surprise.

I created this free IRMAA calculator to strip away the complexity. It determines your 2026 Medicare Part B and Part D surcharges based on your 2024 Modified Adjusted Gross Income (MAGI). Enter your income and filing status to instantly see your costs, run what-if scenarios, and find opportunities to keep more of your hard-earned money.

🎯 This Free Tool Instantly Shows You:

• Your precise 2026 IRMAA tier based on your 2024 income.
• Your total monthly and annual costs for Medicare Part B and Part D.
• How much more you’ll pay compared to a standard beneficiary.
• The potential savings from reducing your income by a specific amount.

How to Use This Free Medicare IRMAA Calculator in 60 Seconds

Getting your personalized IRMAA estimate takes less than a minute. You just need two key pieces of information from your 2024 tax filings.

Step 1: Enter Your 2024 MAGI

Your Modified Adjusted Gross Income is the key. You can find it by taking your Adjusted Gross Income (AGI) from Line 11 of your Form 1040 and adding back any tax-exempt interest from Line 2a.

📊 Quick MAGI Formula Line 11 (AGI) + Line 2a (Tax-Exempt Interest) = Your MAGI for IRMAA

Step 2: Select Your Filing Status

Choose the tax filing status you used for your 2024 tax return. Be aware that “Married Filing Separately” has significantly lower income thresholds and can result in much higher surcharges.

Step 3: Click “Calculate IRMAA”

The tool will instantly process your information and display your results, including your income tier, your specific Part B and Part D surcharges, your total monthly premium, and your total annual IRMAA cost.

Deep Dive: Understanding Your Calculated Results

The results section shows more than just your cost. Pay close attention to the “Distance to Next Tier” feature.

After decades of helping clients with this, I can tell you that being just $1 over a threshold can trigger the full surcharge for that higher tier, costing you over a thousand dollars.

This tool helps you see exactly where that cliff edge is. To understand how your costs are determined, refer to my Guide To Medicare Brackets & Surcharges.

What Income Is Used to Calculate IRMAA? (The Two-Year Lookback Rule)

The two-year lookback rule is one of the most confusing parts of Medicare for new retirees. Simply put: the income you earned in 2024 determines the premiums you will pay in 2026. This process is managed by the Social Security Administration (SSA), which obtains your income data directly from the IRS.

For a deeper dive, read our article on How Your IRMAA Surcharge is Calculated.

Here’s what counts towards your Modified Adjusted Gross Income (MAGI), which is the figure the SSA uses.

Common Income Sources That Count Towards MAGI:

• Wages, salaries, and self-employment income
• Withdrawals from traditional 401(k)s, 403(b)s, and IRAs
• The taxable portion of your Social Security benefits
• Pension and annuity income
• Capital gains from selling stocks, bonds, or real estate
• Taxable interest and dividends
• Crucially: Tax-exempt interest from municipal bonds (this is added back in for the MAGI calculation!)

For a comprehensive overview of what specifically counts, see our guide on Which Income Counts Toward MAGI?

A Practical Example: From AGI to MAGI

Let’s walk through how your AGI becomes your MAGI for IRMAA purposes, using a hypothetical 2024 tax return. You can find your Adjusted Gross Income (AGI) on Line 11 of your tax return.

• Hypothetical Taxpayer: Jane Doe
• 2024 AGI (Line 11, Form 1040): $90,000 (from pension and Social Security)
• 2024 Tax-Exempt Interest (Line 2a, Form 1040): $5,000 (from municipal bonds)

To calculate Jane’s MAGI for IRMAA, the SSA simply adds her tax-exempt interest back to her AGI:

$90,000 (AGI) + $5,000 (Tax-Exempt Interest) = $95,000 (MAGI for IRMAA)

This $5,000 in “tax-free” income now counts towards her IRMAA determination, which could push her into a higher surcharge bracket. Understanding these specific numbers is vital for accurate planning and avoiding surprises down the line.

🛑 Common MAGI Calculation Mistakes

• Mistake #1: Forgetting Tax-Exempt Interest. I’ve seen clients miss a tier by forgetting to add back their municipal bond interest. That $5,000 in “tax-free” income can easily trigger a $1,165+ annual surcharge.
• Mistake #2: Using This Year’s Income. Your 2026 income is irrelevant for your 2026 IRMAA. It’s all based on what you earned two years prior, in 2024. For a full breakdown of the , see our dedicated guide.

Income That Does NOT Count Towards MAGI:

• Qualified distributions from a Roth IRA or Roth 401(k)
• Distributions from a Health Savings Account (HSA) used for medical expenses
• Life insurance death benefits
• Gifts and inheritances you receive

What to Do If You Receive an IRMAA Notice: Appealing with Form SSA-44

Receiving an IRMAA surcharge notification from the Social Security Administration (SSA) can be alarming, but it’s not always the final word. If your income has significantly decreased due to certain “life-changing events” (LCEs) since the tax year the SSA used (your 2024 income for 2026 premiums), you may be able to appeal the decision.

Official Life-Changing Events (LCEs) for IRMAA Appeals:

The SSA recognizes specific events that can warrant an appeal. These include:

• Marriage: If your filing status changes to Married Filing Jointly.
• Divorce or Annulment: If your income changes due to marital status.
• Death of a Spouse: If your income changes as a result.
• Work Stoppage or Reduction: A significant reduction in work hours or stopping work entirely (e.g., retirement).
• Loss of Income-Producing Property: Such as selling a business or rental property.
• Loss of Pension Income: Termination or reduction of a pension.
• Receipt of a Settlement Payment: This might be a one-time lump sum.

If one of these events applies to you, you can use Form SSA-44, “Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event” to request a new determination. You can find and download the SSA-44 Form from the IRS here.

For a complete, step-by-step guide on how to navigate this process, read our comprehensive article: How to Appeal am IRMAA Medicare Surcharge. This article will walk you through collecting necessary documentation and successfully filing your appeal.

Strategies to Lower Your Future IRMAA Surcharges

While your 2026 costs are based on past income, you can plan today to lower your future IRMAA. The “what-if” scenarios in this calculator are designed to help you see the impact of these strategies before you act. Learn more about proactive management in our guide on Planning Ahead To Lower Your Medicare Premiums.

Run Scenarios in the Calculator To See The Impact Of:

• Using Qualified Charitable Distributions (QCDs): If you are over 70.5, you can donate directly from your IRA to a charity. This amount counts toward your RMD but is excluded from your income, directly lowering your MAGI.
• Strategic Roth Conversions: Convert funds from a traditional IRA to a Roth IRA during your lower-income “gap years” (after you retire but before RMDs begin). This raises your MAGI now but gives you tax-free income later that won’t count toward IRMAA. Just be sure you understand the Roth conversion rules and the pro-rata rule before you begin.
• Tax-Loss Harvesting: Sell investments at a loss to offset capital gains, which can significantly reduce your MAGI in a high-income year.

Next Step: Get a Detailed Plan

• This calculator shows you the “what.”
• For the “how,” explore our complete guide: 9 Ways to Avoid IRMAA Surcharges.

When Should You Use This Medicare Calculator?

IRMAA planning isn’t a one-time event. It’s an annual financial health check-up. Here are the most critical times to use this tool.

1. During Annual Planning (October – December)

The last quarter of the year is the perfect time to project your final income. You can still make strategic moves (like tax-loss harvesting or making a QCD to reduce your RMD tax bill) before December 31st to ensure you land in the right IRMAA tier two years from now.

2. Before Any Major Financial Decision

Thinking of selling a rental property or a highly appreciated stock? That capital gain will become part of your MAGI. Use this calculator to see how that sale will impact your Medicare premiums two years down the line. Timing the sale for a different year could save you thousands.

Client Story: The Vacation Home Sale

A couple I work with planned to sell their vacation home in 2024, the same year the husband retired. The sale would have pushed their MAGI into Tier 4, costing them an extra $6,451 in 2026. By running the numbers, we saw that waiting to sell until 2025. When their income would be much lower, It kept them in Tier 1, saving them over $5,000 in a single year.

3. During Key Life Transitions Use this calculator as you approach retirement (ages 60-63), when you enroll in Medicare at 65, and when RMDs begin at age 73 or 75. These are pivotal moments when your income structure changes, and proactive planning can prevent costly surprises.

Final Thoughts

The 2026 IRMAA brackets project to increase by roughly 6%, meaning every dollar of planning matters more than ever. After three decades advising clients, I’ve watched too many retirees face a double shock:

• first discovering IRMAA exists
• Then realizing they could have avoided it two years earlier with a single strategic move.

The most painful cases? Couples who sold a rental property or converted to Roth in the same year they retired. Triggering an extra $6,000+ in surcharges that a simple timing adjustment would have eliminated.​

Your next step isn’t complicated, but it is time-sensitive. Run this calculator with your 2024 numbers right now to lock in your 2026 costs, then immediately project 2025 income to see what’s coming in 2027. If you’re within $5,000 of a bracket threshold, you’re in the danger zone where a single forgotten municipal bond interest payment can cost you over $1,000 annually.

Want the exact playbook? Grab the free IRMAA Avoidance Checklist above. It shows the 9 income moves that kept my clients out of higher tiers, including the QCD strategy that works even if you don’t itemize deductions. Which IRMAA tier did your results show, and does it change your 2025 planning strategy?

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Note: The content provided in this article is for informational purposes only and should not be considered as financial or legal advice. Consult with a professional advisor or accountant for personalized guidance.