Estimate how much Medicare Part B and Part D will cost you in retirement — including Income-Related Monthly Adjustment Amount (IRMAA) surcharges. Based on your Modified Adjusted Gross Income (MAGI), filing status, and coverage choices for 2025–2026.
Medicare isn't free for most retirees. While Medicare Part A (hospital insurance) is typically premium-free if you or your spouse worked at least 10 years paying Medicare taxes, Part B (medical insurance) and Part D (prescription drug coverage) have monthly premiums that vary based on your income. For 2025, the standard Part B premium is $185/month, but higher-income beneficiaries pay significantly more through IRMAA.
The Social Security Administration (SSA) uses your tax return from two years prior to determine your Medicare premiums. For example, your 2025 premiums are based on your 2023 Modified Adjusted Gross Income (MAGI). This two-year lookback gives you a window to make strategic income decisions. If your income has dropped significantly since then due to retirement or other life changes, you may qualify for an IRMAA appeal.
The Income-Related Monthly Adjustment Amount (IRMAA) is an additional surcharge added to your Medicare Part B and Part D premiums when your Modified Adjusted Gross Income (MAGI) exceeds certain thresholds. The Social Security Administration (SSA) determines your IRMAA based on your tax return from two years prior.
| Income Range (Single) | Income Range (MFJ) | Monthly Premium |
|---|---|---|
| $106,000 or less | $212,000 or less | $185.00 (Standard) |
| $106,001 – $133,000 | $212,001 – $266,000 | $259.00 |
| $133,001 – $167,000 | $266,001 – $334,000 | $370.90 |
| $167,001 – $200,000 | $334,001 – $400,000 | $482.80 |
| $200,001 – $500,000 | $400,001 – $750,000 | $594.70 |
| $500,001 or more | $750,001 or more | $628.90 |
The base Part D premium averages about $35/month, plus any IRMAA surcharge based on income.
| Income Range (Single) | Income Range (MFJ) | Monthly Surcharge |
|---|---|---|
| $106,000 or less | $212,000 or less | $0.00 |
| $106,001 – $133,000 | $212,001 – $266,000 | $12.90 |
| $133,001 – $167,000 | $266,001 – $334,000 | $33.30 |
| $167,001 – $200,000 | $334,001 – $400,000 | $53.80 |
| $200,001 – $500,000 | $400,001 – $750,000 | $74.20 |
| $500,001 or more | $750,001 or more | $81.10 |
Your Modified Adjusted Gross Income is your Adjusted Gross Income (from your tax return) plus any tax-exempt interest income. This is the figure the SSA uses to determine your Medicare premiums. Key components include:
If you don't enroll in Medicare Part B when you're first eligible (typically at age 65), you may face a late enrollment penalty of 10% of the standard Part B premium for each full 12-month period you delayed. This penalty lasts for as long as you have Part B. Similarly, Part D has a late enrollment penalty calculated as 1% of the national base beneficiary premium multiplied by the number of months you went without coverage. Use our calculator to estimate your base costs, then consult with a Medicare counselor about enrollment timing.
⚠️ Important: Medicare premiums and IRMAA brackets are updated annually. The 2026 brackets may differ from the 2025 figures shown here. Medicare premiums are typically deducted from your Social Security benefits, but if you don't receive benefits, you'll be billed directly.
📋 Financial Disclaimer: This calculator provides estimates for educational purposes only. Results are not guaranteed and should not be considered financial or medical advice. Consult a qualified financial advisor, tax professional, or Medicare counselor for personalized guidance. Medicare rules, premiums, and IRMAA brackets may change.
IRMAA stands for Income-Related Monthly Adjustment Amount. It's an additional surcharge added to your Medicare Part B and Part D premiums when your Modified Adjusted Gross Income (MAGI) exceeds certain thresholds. For 2025, if you file as single and earn over $106,000 (or $212,000 for married filing jointly), you'll pay extra on top of the standard Part B premium of $185/month. The surcharge increases at higher income brackets, up to $628.90/month for the highest earners.
For Medicare IRMAA, your MAGI is your Adjusted Gross Income (AGI) from your tax return plus any tax-exempt interest income (such as from municipal bonds). The Social Security Administration uses your tax return from two years prior. For example, your 2025 Medicare premiums are based on your 2023 tax return. This two-year lookback gives you time to plan and manage your income if you anticipate approaching an IRMAA threshold.
Yes, you can file an IRMAA appeal if you've experienced a major life-changing event that reduced your income, such as: retirement, divorce or annulment, death of a spouse, loss of pension income, or a work stoppage. You'll need to complete SSA Form SSA-44 (Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event) and provide supporting documentation. If approved, the SSA will recalculate your premiums based on your current (lower) income rather than your tax return from two years ago.
Yes, Medicare Part D (prescription drug coverage) is a separate plan with its own premium. The average base Part D premium is about $35/month, though actual premiums vary by plan and insurer. Like Part B, Part D also has IRMAA surcharges if your income exceeds the same thresholds. If you don't enroll in Part D when you're first eligible and don't have other creditable drug coverage, you may also face a late enrollment penalty.
In most cases, yes. If you receive Social Security benefits, your Medicare Part B and Part D premiums (and any IRMAA surcharges) are automatically deducted from your monthly Social Security benefit payment. If you don't receive Social Security benefits, you'll receive a bill from Medicare (Form CMS-500) every 3 months. You can also opt to have premiums automatically deducted from a bank account via Medicare Easy Pay.
Generally, yes. Medicare Part B premiums, deductibles, and IRMAA thresholds are adjusted annually by the Centers for Medicare & Medicaid Services (CMS). Increases are typically tied to healthcare cost inflation and the Medicare Trustees' projections. The standard Part B premium was $164.90 in 2023, $174.70 in 2024, and $185.00 in 2025. IRMAA brackets are also adjusted — though not annually on a fixed schedule. Your Social Security cost-of-living adjustment (COLA) may partially offset premium increases, but in some years, premium hikes have exceeded the COLA, resulting in a "hold harmless" provision that limits Part B increases for existing beneficiaries.
📋 Financial Disclaimer: This calculator provides estimates for educational purposes only. Results are not guaranteed and should not be considered financial or medical advice. Consult a qualified financial advisor, tax professional, or Medicare counselor for personalized guidance. Medicare rules, premiums, and IRMAA brackets may change annually.
Medicare costs are one of the most commonly overlooked expenses in retirement planning. While many retirees focus on housing, food, and healthcare copays, the monthly Medicare premiums — especially with IRMAA surcharges — can add up to thousands of dollars per year.
A retiree with a MAGI of $200,000 (single) in 2025 will pay $594.70/month for Part B alone, plus Part D premiums and surcharges, totaling over $7,800 per year just for premiums. Understanding these costs early allows you to adjust your retirement income strategy, consider Roth conversions, or plan for tax-efficient withdrawals.
Use this calculator as part of your comprehensive retirement planning toolkit alongside our Retirement Savings Calculator and Social Security Benefits Calculator.