IRMAA Brackets 2027 — What Medicare Beneficiaries Need to Know

If your income is above a certain threshold, you may be required to pay more for your Medicare Part B and Part D coverage through what is known as the Income-Related Monthly Adjustment Amount or IRMAA. Furthermore, because IRMAA brackets are adjusted annually, it is important to understand how the 2027 brackets may affect your Medicare costs. At Craig Smith Insurance Group, we help clients across Queens, Long Island, the Bronx, Westchester, and New Jersey plan for IRMAA every year. Therefore, in this guide, we will explain everything you need to know about IRMAA brackets for 2027.

What Is IRMAA?

First, it is helpful to understand exactly what IRMAA is and who it affects. The Income-Related Monthly Adjustment Amount is an additional surcharge added to your standard Medicare Part B and Part D premiums if your income exceeds certain thresholds. Specifically, IRMAA is based on your Modified Adjusted Gross Income (MAGI) from two years prior. As a result, your 2027 IRMAA surcharge will be based on your 2025 tax return income.

It is important to note that IRMAA affects only a relatively small percentage of Medicare beneficiaries, roughly 7-8% of all Medicare enrollees. However, for those who are affected, the surcharge can add hundreds of dollars per month to their Medicare costs. Consequently, planning is essential for higher-income Medicare beneficiaries.

How IRMAA Brackets Work

IRMAA works on a tiered system; the higher your income, the higher your surcharge. Moreover, the brackets are adjusted each year by the Centers for Medicare and Medicaid Services (CMS) to account for inflation and changes in Medicare costs. Therefore, the 2027 brackets will likely differ slightly from the 2026 brackets currently in effect.

Additionally, it is important to understand that IRMAA brackets apply separately to Medicare Part B and Medicare Part D. As a result, if you are subject to IRMAA, you will pay a surcharge on both your Part B premium and your Part D premium.

2026 IRMAA Brackets — Current Reference

Since the official 2027 IRMAA brackets will not be announced by CMS until late 2026, it is helpful to start with the current 2026 brackets as a reference point. Furthermore, understanding the 2026 figures gives you a solid baseline for estimating what your 2027 costs might look like.

2026 IRMAA Brackets — Individual Filers

2025 Individual Income (MAGI)	Monthly Part B Premium	Part B IRMAA Surcharge
Up to $106,000	$202.90	$0.00
$106,001 – $133,000	$276.90	$74.00
$133,001 – $167,000	$390.90	$188.00
$167,001 – $200,000	$484.90	$282.00
$200,001 – $499,999	$594.90	$392.00
$500,000 and above	$628.90	$426.00

2026 IRMAA Brackets — Joint Filers

2025 Joint Income (MAGI)	Monthly Part B Premium	Part B IRMAA Surcharge
Up to $212,000	$202.90	$0.00
$212,001 – $266,000	$276.90	$74.00
$266,001 – $334,000	$390.90	$188.00
$334,001 – $400,000	$484.90	$282.00
$400,001 – $749,999	$594.90	$392.00
$750,000 and above	$628.90	$426.00

What to Expect for IRMAA Brackets in 2027

While the official 2027 IRMAA brackets will not be released until October or November 2026, there are several important things to understand about how the brackets are likely to change. Specifically, IRMAA brackets are typically adjusted each year based on the Consumer Price Index for Urban Consumers (CPI-U). Therefore, if inflation remains moderate, the 2027 brackets will likely be slightly higher than the 2026 brackets, meaning the income thresholds at which IRMAA kicks in will be a bit higher.

As a result of these annual adjustments, some beneficiaries who paid IRMAA in 2026 may find themselves below the threshold in 2027, particularly if their income has remained stable or decreased. Consequently, it is always worth reviewing your projected income each year to determine whether you may qualify for a lower IRMAA bracket or an exemption.

Key Factors That Will Influence 2027 IRMAA Brackets

Several factors will influence the exact 2027 IRMAA bracket thresholds. Understanding these factors can help you plan more effectively:

• Inflation adjustments — CMS adjusts IRMAA thresholds annually based on CPI data. Therefore, moderate inflation typically results in slightly higher bracket thresholds
• Medicare Part B premium changes — since IRMAA surcharges are calculated as a percentage of the Part B premium, any increase in the standard Part B premium will also increase IRMAA dollar amounts
• Congressional action — In some years, Congress has made legislative changes that affect IRMAA calculations and thresholds
• Your 2025 income — because 2027 IRMAA is based on 2025 income, events that occurred in 2025, such as retirement, Roth conversions, or asset sales, will directly impact your 2027 IRMAA status

Which Year’s Income Determines Your 2027 IRMAA?

This is one of the most common sources of confusion about IRMAA. Specifically, your 2027 IRMAA surcharge is based on your 2025 Modified Adjusted Gross Income (MAGI), not your current income. This two-year lookback period means that income events from 2025 will affect your Medicare costs in 2027.

Therefore, if you retired in 2025 and your income dropped significantly, you may be able to appeal your 2027 IRMAA determination using a Life Changing Event (LCE) form. Alternatively, if you had an unusually high income year in 2025 due to a one-time event such as a large Roth conversion or property sale, you can also appeal to have your IRMAA recalculated based on your current lower income.

How to Appeal Your IRMAA Determination

If you believe your IRMAA surcharge has been incorrectly determined or if your income has changed significantly since the base year, you have the right to appeal. Specifically, you can request a new initial determination from the Social Security Administration if you have experienced one of the following qualifying Life Changing Events:

• Marriage, divorce, or the death of a spouse
• Retirement or reduction in work hours
• Loss of income-producing property
• Loss of pension income
• Receipt of settlement payment from an employer

To appeal your IRMAA determination, you will need to complete Form SSA-44 and submit it to your local Social Security office along with documentation supporting your income change. Furthermore, working with an experienced Medicare broker can help you navigate this process more efficiently.

IRMAA and Retirement Planning — Why It Matters

One of the most important yet often overlooked aspects of retirement planning is accounting for IRMAA in your income projections. Specifically, several common retirement income events can trigger or increase your IRMAA surcharge:

• Required Minimum Distributions (RMDs) — withdrawals from traditional IRAs and 401(k)s increase your MAGI and can push you into a higher IRMAA bracket
• Roth conversions — while beneficial in the long run, large Roth conversions in a single year can significantly increase your MAGI and trigger IRMAA
• Capital gains from asset sales — selling a home, investment property, or securities can generate large one-time income spikes that affect IRMAA
• Social Security income — up to 85% of Social Security benefits may be included in your MAGI calculation, depending on your total income

Consequently, working with both a financial advisor and an independent Medicare broker before making major retirement income decisions is highly recommended. Together, these professionals can help you minimize your IRMAA exposure through strategic income planning.

How to Use Our Free IRMAA Calculator

To estimate your current IRMAA surcharge based on your income, use our free Medicare IRMAA Calculator. Simply enter your income and filing status, and the calculator will instantly show you which IRMAA bracket you fall into and how much your monthly Medicare surcharge will be.

Furthermore, if you have questions about how your specific income situation affects your IRMAA status — or if you would like help appealing an IRMAA determination contact Craig Smith Insurance Group for a free consultation.

Frequently Asked Questions About IRMAA Brackets 2027

When will the 2027 IRMAA brackets be announced?

The official 2027 IRMAA brackets will be announced by CMS in October or November 2026, along with the 2027 Medicare Part B premium. Therefore, check back at that time for the official figures. In the meantime, the 2026 brackets provide a useful reference point for planning purposes.

What income is used to determine my 2027 IRMAA?

Your 2027 IRMAA surcharge is based on your 2025 Modified Adjusted Gross Income (MAGI) as reported on your 2025 federal tax return. Specifically, the Social Security Administration uses IRS data to determine your IRMAA bracket each year.

Can I avoid IRMAA?

While you cannot avoid IRMAA entirely if your income exceeds the thresholds, there are legitimate strategies to minimize your exposure. For example, strategic Roth conversions, qualified charitable distributions from IRAs, and careful timing of capital gains can all help reduce your MAGI and potentially lower your IRMAA bracket. Working with a financial advisor who specializes in retirement income planning is the best way to explore these strategies.

What if my income has dropped since the base year?

If your income has dropped significantly since the base year used for your IRMAA determination due to retirement, loss of a spouse, or another qualifying life event, you can appeal your IRMAA determination using Form SSA-44. As a result, your surcharge may be recalculated based on your current lower income.

Does IRMAA apply to Medicare Advantage plans?

Yes — IRMAA applies to your Medicare Part B premium regardless of whether you are in Original Medicare or a Medicare Advantage plan. Furthermore, if your Medicare Advantage plan includes prescription drug coverage, the Part D IRMAA surcharge also applies. Therefore, IRMAA affects both Original Medicare and Medicare Advantage beneficiaries above the income thresholds.

Get Free Expert Guidance on IRMAA

Navigating IRMAA can be complex, especially when combined with the other financial decisions that come with retirement. Fortunately, as an independent Medicare broker serving Queens, Long Island, the Bronx, Westchester, Rockland County, and New Jersey, I help clients understand and plan for IRMAA every day at no cost to you.

Whether you have questions about your current IRMAA bracket, want to understand how the 2027 brackets might affect you, or need help appealing an IRMAA determination, I am here to help. You will always speak directly with Craig, never a call center.

📞 Call (917) 740-1895
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