In 2026, Social Security old age income benefits are increasing 2.8% because of a cost-of-living adjustment (COLA). However, Medicare cost are also increasing.

Medicare premiums are subtracted from Social Security Income each month of Social Security old age income payments. Since the inception of Medicare, recipients have historically paid 25% of the Medicare costs through their monthly premiums and the Federal government has paid 75%. 

Not anymore. Higher wage earners now will pay high monthly premiums. The Social Security Administration collects Medicare premiums based upon income from two years earlier. The 2026 Medicare premiums are based upon 2024 incomes. If a taxpayer's income exceeds certain thresholds, based upon the 2024 tax returns, taxpayers pay an extra Medicare surcharge called Income Related Monthly Adjustment Amount (IRMAA).

IMRAA applies if a taxpayer's Modified Adjusted Gross Income (MAGI) from 2024 is above $109,000 for a single tax filer and above $218,000 for joint tax filers. These extra charges are deducted from a taxpayer's monthly Social Security income payments.

For single tax filers with a MAGI of $109,000.00 or less, the IRMAA surcharge is $0.00 and the total monthly premium per person is $202.90; likewise for joint filers with a MAGI of $218,000.00 or less.

For single tax filers with a MAGI of $109,001.00 - $137,000.00, the IRMAA surcharge is $81.20 and the total monthly premium per person is $284.10; likewise for joint filers with a MAGI of $218,001.00 - $274,000.00.

For single tax filers with a MAGI of $137,001.00 - $171,000.00, the IRMAA surcharge is $202.90 and the total monthly premium per person is $405.80; likewise for joint filers with a MAGI of $274,001.00 - $342,000.00.

For single tax filers with a MAGI of $171,001.00 - $205,000.00, the IRMAA surcharge is $324.60 and the total monthly premium per person is $527.50;  likewise for joint filers with a MAGI of $342,001.00 - $410,000.00.

For single tax filers with a MAGI of $205,001.00 - $499,999.00, the IRMAA surcharge is $446,39 and the total monthly premium per person is $649.20;  likewise for joint filers with a MAGI of $410,001.00 - $749,999.00.

Finally, for single filers with a MAGI of $500,000.00 or more and joint filers with a MAGI of $750,000.00, the monthly premium is $487.00 and the total monthly premium per person is $689.90.

ROTH IRA withdrawals, withdrawals from Health Savings Accounts and qualified charitable distributions from traditional IRA's will not raise the MAGI, and therefore, will not increase the IMRAA deductions.  

Taxpayers may be entitled to an IRMAA refund if an increase in income was due to a marriage, divorce, death of a spouse, work stoppage, reduction of income producing property loss, pension income or employment settlement account.