1. What Are Medicare Income Percentiles?

Medicare income percentiles show how a household's income compares to others in the US for Medicare purposes. These percentiles help determine Medicare premiums and eligibility for certain programs.

2. How Does the Calculator Work?

The calculator uses official Medicare income percentile tables:

Where:

• \( Income \) — Household income in USD
• The lookup table is based on current Medicare income distribution data

Explanation: The calculator matches your income to the appropriate percentile based on Medicare's official income distribution statistics.

3. Importance of Income Percentiles

Details: Medicare uses income percentiles to determine IRMAA (Income-Related Monthly Adjustment Amount) surcharges for Part B and Part D premiums. Higher percentiles may pay higher premiums.

4. Using the Calculator

Tips: Enter your total household income from your most recent tax return. The calculator will show where your income falls in the national distribution for Medicare purposes.

5. Frequently Asked Questions (FAQ)

Q1: What income is counted for Medicare percentiles?
A: Medicare uses Modified Adjusted Gross Income (MAGI) from your tax return, which includes wages, dividends, capital gains, and other income.

Q2: How often are the percentile tables updated?
A: Medicare typically updates income thresholds annually to account for inflation and changing income distributions.

Q3: What percentile triggers higher Medicare premiums?
A: Generally, incomes above the 85th percentile (about $91,000 for individuals) may face IRMAA surcharges.

Q4: Does this include all US households?
A: Yes, the percentiles are based on the distribution of all US tax filers, including those not enrolled in Medicare.

Q5: How accurate is this calculator?
A: For exact Medicare premium calculations, always consult official IRS/Medicare data as thresholds change annually.