Medicare Part D
$109,000 Income Line Triggers Medicare IRMAA in Santa Fe
SANTA FE, N.M. — As Medicare's Annual Enrollment Period runs through Dec. 7, higher-income retirees across northern New Mexico are getting a closer look at a line item that surprises many people every fall: the income-related monthly adjustment amount, better known as IRMAA. For 2026, the income thresholds that trigger these Part B and Part D surcharges start at $109,000 for a single filer — and understanding how they work can help you plan before the new year begins.
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Click to call 855-729-3240Key takeaways
- For 2026, extra Medicare charges called IRMAA kick in once yearly income tops $109,000 for single filers or $218,000 for married couples filing jointly.
- Your 2026 IRMAA amount is usually based on your 2024 tax return, since Social Security uses the most recent return on file.
- If your income dropped due to retirement, divorce, or losing a spouse, you can file Form SSA-44 to ask Social Security to recalculate your IRMAA.
- Separately in 2026, Part D drug coverage gets a $2,100 out-of-pocket cap and a maximum deductible of $615, and these apply to everyone regardless of income.
What IRMAA is, in plain English
IRMAA stands for the Income-Related Monthly Adjustment Amount. It's an extra charge that gets added to your standard Part B premium and, if you have prescription drug coverage, to your Part D premium. It isn't a penalty for doing anything wrong. It's simply the way Medicare asks higher-income beneficiaries to pay a larger share of their coverage costs.
Most people on Medicare don't pay IRMAA at all. It only kicks in once your income crosses a specific line.
The 2026 income thresholds
For 2026, IRMAA surcharges begin above $109,000 in yearly income for a single tax filer, and above $218,000 for a married couple filing jointly. If your income sits at or below those numbers, you'll pay the standard Part B premium and no Part D adjustment.
Above those thresholds, the surcharges rise in tiers. The higher your income, the larger the monthly add-on to both Part B and Part D. The top tier applies to single filers with incomes at or above $500,000 and married couples at or above $750,000.
One important detail: Social Security uses your most recent tax return on file, which is usually from two years ago. So your 2026 IRMAA is generally based on your 2024 tax return.
How you'll be notified
If you owe IRMAA in 2026, the Social Security Administration will mail you a letter — typically in late fall — explaining the amount and how it was calculated. The Part B surcharge is usually taken out of your Social Security check. The Part D surcharge is billed separately, even if your drug plan premium is drawn from your bank account or Social Security.
If a plan sponsor collects your standard Part D premium, the IRMAA piece still comes from Medicare, not from the plan.
What to do if your income has dropped
Life changes. If you've retired, lost a spouse, gone through a divorce, or had another qualifying event that reduced your income, you don't have to accept an IRMAA amount based on a higher-earning year. You can file Form SSA-44, "Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event," with the Social Security Administration to request a new determination.
Qualifying life-changing events include:
- Marriage, divorce, or death of a spouse
- Work stoppage or reduction
- Loss of pension income
- Loss of income-producing property due to a disaster
You can also appeal if the IRS data used by Social Security was wrong or outdated.
The bigger 2026 picture for Part D
IRMAA is only one piece of what's changing. In 2026, Part D also has a new $2,100 out-of-pocket cap on covered prescription drugs, and the maximum Part D deductible is $615. The coverage gap — the old "donut hole" — was eliminated in 2025, so Part D now has three phases instead of four. And the Medicare Prescription Payment Plan lets anyone with Part D spread their drug costs across the calendar year in monthly installments, at no extra charge, if that helps with cash flow.
None of those figures depend on your income. They apply program-wide.
Local context for Santa Fe
Santa Fe is in Santa Fe County, where Original Medicare is available to everyone who qualifies, along with a range of Medicare Advantage and stand-alone Part D options offered by private insurers. The number of plans available in the county changes each year as carriers file with CMS. IRMAA, however, works the same way whether you stay with Original Medicare or enroll in a Medicare Advantage plan — the surcharges are tied to your income, not to the plan you pick.
New Mexico's State Health Insurance Assistance Program (SHIP), known locally as the Benefits Counseling program through the New Mexico Aging and Long-Term Services Department, offers free, unbiased help understanding your options.
By the numbers
Medicare Part B premium, 2006–2026
The standard monthly Part B premium has climbed from $88.50 in 2006 to $202.90 in 2026. Hover any point for that year’s premium.
Source: CMS. Standard premium shown; in some hold-harmless years many existing enrollees paid less. Confirm at Medicare.gov.
By the numbers
How people get Medicare in Santa Fe County
(MA penetration in Santa Fe County)
MA penetration from CMS enrollment data; Medigap share is an estimate. U.S. average is about 54% Medicare Advantage. These are area-level figures, not plan-specific.
Higher-income surcharges
2026 IRMAA income brackets
If your income is above a threshold, you pay an income-related surcharge (IRMAA) on top of your Part B and Part D premiums. Your 2026 surcharge is based on your 2024 tax return.
| Income — single filer | Income — married, joint | Part B monthly premium | Part D surcharge |
|---|---|---|---|
| $109,000 or less | $218,000 or less | $202.90 | Plan premium only |
| $109,001 – $137,000 | $218,001 – $274,000 | $284.10 | + $14.50 |
| $137,001 – $171,000 | $274,001 – $342,000 | $405.80 | + $37.40 |
| $171,001 – $205,000 | $342,001 – $410,000 | $527.50 | + $60.40 |
| $205,001 – $500,000 | $410,001 – $750,000 | $649.30 | + $83.30 |
| Above $500,000 | Above $750,000 | $689.90 | + $91.00 |
Standard Part B premium is $202.90/month. Part D surcharges are added to your drug plan’s premium. Married-filing-separately uses a different, compressed schedule. Confirm current amounts at Medicare.gov.
Try it
Find your 2026 Medicare premium
Most people pay the standard Part B premium. If your 2024 income was higher, an income-related surcharge (IRMAA) applies. Enter your details to see your bracket.
Surcharges are added to your premiums and based on your 2024 tax return. Married-filing-separately uses a different schedule. Confirm at Medicare.gov.
Try it
How the 2026 Part D drug cap works
Slide to your estimated yearly prescription costs and see how the new $2,100 out-of-pocket cap protects you. This illustrates the standard Part D benefit; your plan may structure costs differently.
Once your out-of-pocket spending on covered drugs reaches $2,100, you pay nothing more for the rest of 2026. Confirm details at Medicare.gov.
Good to know
Frequently asked questions
Does IRMAA go away if my income drops next year?
Do Roth conversions or capital gains count toward IRMAA?
If I have Medicare Advantage, do I still pay Part B IRMAA?
- CMS — Medicare costs & IRMAA (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.