Are Medicare premiums tax deductible? Yes, in most cases they can be, because the IRS treats premiums for insurance covering medical care as a qualifying medical expense. How you claim the deduction, and whether it produces any tax savings, depends on whether you itemize or qualify for the self-employed health insurance deduction.
Medicare premiums (Part B, Part D, voluntary Part A, and Medicare Advantage or Medigap coverage) generally qualify as deductible medical expenses under IRC §213(d). Most retirees claim them on Schedule A, but only the portion of total medical costs above 7.5% of adjusted gross income counts. The 2026 standard Part B premium is $202.90 per month (Source: CMS, 2026 fact sheet).
Are Medicare premiums tax deductible? The short answer
Medicare premiums are generally deductible as a medical expense under Internal Revenue Code §213(d), which includes amounts paid for “insurance covering medical care” (Source: Cornell LII, IRC §213). There are two separate paths: an itemized deduction on Schedule A, or an above-the-line self-employed health insurance deduction. Most retirees use the first path; only those with self-employment income can use the second.
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Deducting a premium is a different question from how much you pay for it. Income-related premium surcharges are set separately. See our companion guide on Medicare IRMAA 2026 brackets and premiums for how income drives your premium amount.
Path 1: Itemized medical deduction on Schedule A (the 7.5% AGI rule)
If you are not self-employed, Medicare premiums are deductible only if you itemize on Schedule A (Form 1040) and only to the extent your total medical expenses exceed 7.5% of your adjusted gross income (Source: IRS Publication 502; IRS Topic 502). This 7.5% floor is permanent, not a temporary provision (Source: Cornell LII, IRC §213(a)). Some older articles cite 10%, which is outdated.
Worked example: with $75,000 of AGI, the first 7.5% ($5,625) of medical costs is not deductible. If total qualifying medical expenses (including Medicare premiums) reach $8,625, the deductible amount is $3,000. Only what you actually pay out of pocket counts; amounts covered by insurance do not (Source: IRS Publication 502).
The standard deduction hurdle for retirees
Itemizing only produces a benefit when your total itemized deductions exceed the standard deduction available to you. Under the One, Big, Beautiful Bill Act (Public Law 119-21, signed July 4, 2025), individuals who are age 65 or older by the last day of the tax year may claim an additional temporary deduction of $6,000 per eligible individual for tax years 2025 through 2028, in addition to the existing additional standard deduction for seniors; the amount phases out above modified adjusted gross income of $75,000 ($150,000 for joint filers) (Source: IRS, One Big Beautiful Bill Act, tax deductions for working Americans and seniors, 2025). Because the standard deduction figure a taxpayer must exceed is higher, whether the Schedule A medical deduction produces savings is a year-by-year calculation, and in many cases it does so only in years with large medical, long-term-care, or dental bills (Source: IRS Publication 502, 2025).
Which parts of Medicare qualify on Schedule A
Most Medicare premiums generally count as medical expenses on Schedule A: Part B, Part D, a voluntary Part A premium, Medicare Advantage (Part C), and Medigap coverage are each treated as amounts paid for insurance covering medical care (Source: IRS Publication 502, 2025; IRC §213(d)). Premiums remain deductible even when they are automatically withheld from your Social Security benefit. The table below summarizes each part and any conditions that apply.
| Coverage | Deductible as a medical expense? | Note |
|---|---|---|
| Part B (medical insurance) | Yes | Standard premium $185.00/mo in 2025; $202.90/mo in 2026 (Source: CMS) |
| Part D (prescription drugs) | Yes | Voluntary drug coverage premiums qualify (Source: IRS Pub 502) |
| Part A (voluntary) | Yes, only if you pay a premium | Free Part A from payroll taxes is not deductible (Source: IRS Pub 502) |
| Part C (Medicare Advantage) | Generally yes | Treated as insurance covering medical care under IRC §213(d) |
| Medigap (Supplement) | Generally yes | Treated as insurance covering medical care under IRC §213(d) |
Voluntary Part A applies only to the roughly 1% of beneficiaries who did not earn enough Medicare-covered quarters; that premium is $311 per month in 2026 at the reduced rate and $565 at the full rate (Source: CMS, 2026 fact sheet).
Path 2: The self-employed health insurance deduction
If you have self-employment income, you may generally deduct Medicare premiums above the line on Schedule 1 (Form 1040), line 17, without itemizing and without the 7.5% adjusted gross income floor (Source: IRS Instructions for Form 7206, 2025). Two statutory limits apply under IRC §162(l): the deduction cannot exceed your business earned income, and it is barred for any month subsidized employer coverage was available (Source: Cornell LII, IRC §162(l)).
If you have self-employment income, you may deduct Medicare premiums above the line on Schedule 1 (Form 1040), line 17, without itemizing and without the 7.5% AGI floor (Source: IRS Instructions for Form 7206, 2025). Form 7206 now carries content that previously appeared in IRS Publication 535, which has been discontinued (Source: IRS Instructions for Form 7206, 2025). The instructions state that “Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction.”
Two statutory limits apply under IRC §162(l): the deduction cannot exceed your earned income from the business, and it is not allowed for any month you or your spouse were eligible for a subsidized employer health plan (Source: Cornell LII, IRC §162(l)). The Form 7206 instructions also allow a policy to cover your spouse, dependents, and any child who was under age 27 at the end of the year, even if that child was not your dependent (Source: IRS Instructions for Form 7206, 2025).
The S-corporation more-than-2% shareholder rule
For a more-than-2% S-corporation shareholder, the IRS guidance provides that health and Medicare premiums must generally be paid or reimbursed by the S-corporation and reported as wages in Box 1 of the shareholder’s Form W-2 before the shareholder may claim the above-the-line deduction (Source: IRS, S Corporation Compensation and Medical Insurance Issues; IRS Notice 2008-1). Under that guidance, the deduction is available whether the corporation buys the policy in its own name or reimburses a policy the shareholder bought, provided the premium is included in W-2 wages. Reporting for entity owners is fact-specific and depends on the arrangement in place.
Medicare, HSAs, and public safety officers
Two other rules interact with Medicare premiums. Health Savings Account funds may generally be used tax-free to pay Medicare premiums once you are age 65 or older, other than premiums for a Medicare supplemental (Medigap) policy (Source: IRS Publication 969, 2025). Separately, eligible retired public safety officers may exclude certain distributions used for health premiums, subject to an annual cap (Source: IRS Publication 575).
Once you enroll in any part of Medicare, you can no longer make new Health Savings Account contributions (Source: IRS Publication 969, 2025). Existing HSA funds may generally be used tax-free to pay Medicare premiums once you are age 65 or older, but Publication 969 excludes premiums for a Medicare supplemental policy such as Medigap from that treatment (Source: IRS Publication 969, 2025).
Separately, eligible retired public safety officers may exclude from income distributions used to pay health or long-term-care premiums, including Medicare, up to the smaller of the premiums paid or $3,000 per year (Source: IRS Publication 575, 2025). Amounts excluded this way cannot also be claimed as a Schedule A medical deduction, because the tax code does not allow a double benefit for the same expense (Source: IRS Publication 575, 2025).
Long-term-care insurance premiums are also treated as medical care under §213(d)(10), subject to age-based annual caps. For 2026 the caps range from $500 (age 40 or under) to $6,200 (over age 70) (Source: Rev. Proc. 2025-32).
How the two paths compare
The two routes differ in eligibility and mechanics. The Schedule A itemized deduction is open to any taxpayer with medical costs but requires itemizing and applies only above 7.5% of adjusted gross income. The self-employed deduction on Schedule 1 has no AGI floor and does not require itemizing, but is limited to those with business earned income and is barred when subsidized employer coverage is available (Source: IRS Publication 502; IRC §162(l)).
| Feature | Schedule A (itemized) | Self-employed (Schedule 1) |
|---|---|---|
| Where reported | Schedule A, Form 1040 | Schedule 1, line 17 (via Form 7206) |
| Must itemize? | Yes | No |
| 7.5% AGI floor? | Yes | No |
| Who qualifies | Any taxpayer with medical costs | Self-employed with earned income |
| Amount limit | Costs above 7.5% of AGI | Up to net business profit |
| Employer-plan bar? | No | Yes (if subsidized coverage available) |
Neither deduction applies until it is reported on the return. Retirement-tax strategies such as Roth conversions can also change your AGI, which in turn affects both the 7.5% medical threshold and related items like the net investment income tax and the Social Security tax torpedo.
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Frequently asked questions
Can you deduct Medicare premiums on your taxes?
Yes, in most cases. Medicare premiums qualify as a medical expense under IRC §213(d) (Source: Cornell LII). Retirees who itemize claim them on Schedule A, subject to the 7.5% of AGI floor. Self-employed taxpayers may instead deduct them above the line on Schedule 1, line 17, without itemizing (Source: IRS Instructions for Form 7206, 2025).
Are Medicare Part B premiums tax deductible?
Yes. Part B premiums are deductible as a medical expense (Source: IRS Publication 502). The standard Part B premium is $185.00 per month in 2025 and $202.90 per month in 2026 (Source: CMS). Higher earners pay income-related surcharges. On Schedule A, Part B counts only toward medical costs above 7.5% of AGI.
Can I deduct Medicare premiums if I take the standard deduction?
Generally no, not through Schedule A, because the itemized medical deduction requires you to itemize instead of taking the standard deduction (Source: IRS Topic 502). The exception is the self-employed health insurance deduction, which is claimed above the line on Schedule 1 and is available even if you take the standard deduction (Source: IRS Instructions for Form 7206).
Are Medicare premiums tax deductible if you are self-employed?
Yes, often. Self-employed taxpayers may deduct Medicare premiums above the line on Schedule 1 (Form 1040), line 17, using Form 7206, without itemizing and without the 7.5% AGI floor (Source: IRS Instructions for Form 7206, 2025). The deduction cannot exceed business earned income and is barred for months you had access to subsidized employer coverage (Source: IRC §162(l)).
Is Medicare Part A tax deductible?
Only if you pay a premium for it. About 99% of beneficiaries get premium-free Part A through payroll taxes, and that Medicare tax is not deductible (Source: CMS; IRS Publication 502). Those who voluntarily enroll and pay a Part A premium ($311 to $565 per month in 2026) may include it as a medical expense (Source: CMS, 2026 fact sheet).
Are Medigap premiums tax deductible?
Generally yes. Medigap (Medicare Supplement) premiums are treated as amounts paid for insurance covering medical care under IRC §213(d) and are deductible on the same basis as other medical insurance (Source: Cornell LII, IRC §213). One difference: Publication 969 excludes Medigap premiums from tax-free Health Savings Account distributions, although other Medicare premiums may generally be paid from an HSA once you are age 65 or older (Source: IRS Publication 969, 2025).
How much of my medical expenses can I deduct?
On Schedule A, only the portion of total qualifying medical expenses that exceeds 7.5% of your adjusted gross income (Source: IRS Publication 502). For example, at $75,000 AGI the first $5,625 is not deductible; expenses above that amount are. The self-employed deduction is not subject to this floor but is capped at your business earned income (Source: IRC §162(l)).
Can I deduct my spouse’s Medicare premiums?
Often yes. On Schedule A, a spouse’s Medicare premiums count among your family medical expenses subject to the 7.5% AGI floor (Source: IRS Publication 502). Under the self-employed deduction, a policy may cover your spouse, dependents, and any child who was under age 27 at the end of the year when figuring the deduction (Source: IRS Instructions for Form 7206, 2025).
Sources
IRC §213 (medical expenses; 7.5% AGI floor), Cornell LII: https://www.law.cornell.edu/uscode/text/26/213
IRC §162(l) (self-employed health insurance deduction), Cornell LII: https://www.law.cornell.edu/uscode/text/26/162
IRS Publication 502 (Medical and Dental Expenses): https://www.irs.gov/publications/p502
IRS Tax Topic 502: https://www.irs.gov/taxtopics/tc502
IRS Instructions for Form 7206 (2025): https://www.irs.gov/instructions/i7206
IRS Publication 575 (public safety officer exclusion): https://www.irs.gov/publications/p575
IRS Publication 969 (Health Savings Accounts; HSA and Medicare premiums): https://www.irs.gov/publications/p969
IRS, S Corporation Compensation and Medical Insurance Issues (more-than-2% shareholder W-2 rule): https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues
IRS Notice 2008-1 (2% shareholder health insurance deduction): https://www.irs.gov/pub/irs-drop/n-08-01.pdf
IRS, One Big Beautiful Bill Act: Tax deductions for working Americans and seniors (age 65+ $6,000 deduction): https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors
CMS 2025 Medicare Parts B premiums and deductibles: https://www.cms.gov/newsroom/fact-sheets/2025-medicare-parts-b-premiums-and-deductibles
CMS 2026 Medicare Parts B premiums and deductibles: https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles
Rev. Proc. 2025-32 (2026 inflation adjustments, LTC caps): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
