Calculators · Medicare
IRMAA Impact Calculator: What a Rental Sale Does to Medicare Premiums
A rental sale can push a retiree into a higher Medicare premium tier two years later. Enter your income and the gain and see the Part B and Part D surcharge for the year, and what a full exchange avoids.
What this calculator does
Medicare premiums are income-tested. In 2026 the standard Part B premium is $202.90 a month, and the income-related monthly adjustment starts once modified adjusted gross income passes $109,000 for a single filer or $218,000 for a joint return, rising through five tiers to $689.90 a month for Part B plus a Part D adjustment of up to $91.00. Because the test uses the return from two years earlier, a 2026 sale lands on 2028 premiums.
Enter your normal income and the gain from the sale. The calculator shows the tier with and without the gain, the extra premium for the year, and what deferring the gain through an exchange avoids. The 2026 tiers are used as the illustration; the 2028 tiers will be indexed.
Premium tier with and without the gain
How the numbers are calculated
Modified adjusted gross income with the sale = usual MAGI plus recognized gain. The tier is looked up in the 2026 CMS table for the filing status; the monthly Part B premium and the Part D income-related adjustment at that tier are compared with the tier without the gain. The annual cost is the monthly difference times twelve, doubled for a couple where both spouses are on Medicare.
A full exchange leaves the deferred gain out of MAGI under section 1031(d); boot is included.
Questions about this calculator
Why does a 2026 sale affect premiums in 2028?
Medicare sets each year's income-related adjustment from the tax return filed two years earlier, so 2026 income sets 2028 premiums. The 2026 tiers shown here are based on 2024 returns; the 2028 tiers will be indexed slightly higher.
Can I appeal the surcharge after a one-time sale?
Only for the life-changing events on Form SSA-44 (retirement, loss of income, divorce, death of a spouse and similar). A property sale is not one of them, so the surcharge stands for that year.
Does a 1031 exchange avoid it?
Deferred gain is not in modified adjusted gross income, so a full exchange keeps the sale year's income where it was. Boot counts. See will selling my rental raise my Medicare premiums.
Sources
Figures checked on September 30, 2026. Rates and thresholds change each year; this page is general information, not tax or legal advice.
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