The Centers for Medicare & Medicaid Services set the 2026 standard Medicare Part B premium at $202.90 per person. This represents an increase from the 2025 standard premium of $185.00 per person.

Medicare uses Modified Adjusted Gross Income (MAGI) from two years prior to calculate premiums. A business sale that closes in 2024 can affect Medicare premiums for 2026 due to this two-year lookback period. For Medicare calculations, MAGI is defined as the adjusted gross income from Form 1040 line 11, plus tax-exempt interest reported on line 2a.

Approximately 8% of Medicare Part B beneficiaries pay an Income-Related Monthly Adjustment Amount (IRMAA) surcharge. For joint filers with a 2024 MAGI of $218,000 or less, the 2026 Part B premium will be $202.90, with no Part D surcharge. Joint filers with a 2024 MAGI between $218,001 and $274,000 will have a 2026 Part B premium of $284.10 and a Part D surcharge of $14.50.

For joint filers whose 2024 MAGI falls between $274,001 and $342,000, the 2026 Part B premium is set at $405.80, alongside a Part D surcharge of $37.50. Those with a 2024 MAGI between $342,001 and $410,000 will pay a 2026 Part B premium of $527.50 and a Part D surcharge of $60.40. Joint filers with a 2024 MAGI ranging from $410,001 to $749,999 will see a 2026 Part B premium of $649.20 and a Part D surcharge of $83.30.

The highest income tier for joint filers, those with a 2024 MAGI of $750,000 or more, will have a 2026 Part B premium of $689.90 and a Part D surcharge of $91.00. Single IRMAA income brackets are approximately half the value of joint IRMAA income brackets.

Form SSA-44 outlines eight specific life-changing events that may lead to a reduction in IRMAA surcharges. These events include marriage, divorce or annulment, death of a spouse, work stoppage, work reduction, certain losses of income-producing property, loss of pension income, and employer settlement payment. A business sale by itself, a Roth conversion, or a voluntary home sale do not qualify as life-changing events for Form SSA-44. However, if an individual closed a business or ended self-employment concurrently with a sale, the Social Security Administration may permit the use of a more recent tax year to determine IRMAA under the work stoppage provision.