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Medicare premiums are tax-deductible, along with some other Medicare costs, but only if you meet two main requirements:
- You must itemize: You can't claim Medicare expenses if you take the standard deduction. The standard deduction is quite high (over $15,000 for most people — more for seniors). So most people don't save money by itemizing. Over 90% of taxpayers go with the standard deduction, according to the Urban-Brookings Tax Policy Center.
- The 7.5% AGI threshold: You can only deduct the portion of your medical bills that exceeds 7.5% of your adjusted gross income. For example, if your AGI is $100,000, your first $7,500 of medical costs isn't deductible.
If you’re self-employed, you might not need to meet these requirements.
This guide includes information about the 2025 tax year, which generally applies to tax returns filed in 2026.
The “senior bonus” tax deduction
Seniors age 65 or older get a bump in the standard deduction — $1,600 to $2,000 in 2025. And for the 2025–2028 tax years, the One Big Beautiful Bill Act (OBBBA) added an enhanced deduction of up to $6,000 for individuals age 65 and older ($12,000 for married couples).
When you stack all of these up, a single senior may be able to deduct up to $23,750 in 2025 without itemizing a single receipt. This makes it even harder for medical expenses to beat the standard deduction.
Note: The $6,000 deduction starts to phase out if your modified adjusted gross income (MAGI) is over $75,000 ($150,000 for married couples).
Medicare premiums are tax-deductible if you itemize deductions, although there may be restrictions:
- Part A premiums are tax-deductible if you pay them. (Most people don’t pay premiums for Medicare Part A, but if you do and you’re not yet collecting Social Security benefits, these are deductible.)
- Part B premiums are tax-deductible. The standard monthly Part B premium is $185 in 2025 ($202.90 in 2026). You can still deduct your Part B premiums even if they come out of your Social Security check automatically.
- Part C premiums are tax-deductible.
- Part D premiums are tax-deductible.
- Medigap premiums are tax-deductible.
- IRMAA: If you have to pay the income-related monthly adjustment amount (IRMAA), this is also tax-deductible.
There are limits on the deductibility of long-term care insurance premiums. For tax year 2025, the maximum tax deduction for long-term care premiums for people ages 61 to 70 is $4,810 per person; for ages 71 and up, the limit is $6,020. (These limits are per person.)
» MORE: What you'll pay for Medicare
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Understanding the 7.5% AGI threshold
To find out if your Medicare premiums and other medical costs are high enough to deduct, follow these steps:
- Total your medical expenses. Add up all your medical and dental costs for the year that weren’t reimbursed (Medicare and other premiums, deductibles, copayments, etc.).
- Find your 7.5% AGI threshold. Take your adjusted gross income (AGI) and multiply it by 0.075. This is your 7.5% threshold.
- Subtract that 7.5% threshold from your total medical expenses. Whatever is left is tax-deductible.
Let’s say your adjusted gross income is $35,000. That puts 7.5% of your AGI at $2,625.
If you spent $3,000 on Medicare premiums and out-of-pocket costs last year, you could deduct $375. You would only use this if your total itemized deductions beat your standard deduction.
If you spent $2,000 on medical costs, you could deduct $0.
Are you freelancing or doing some consulting work in retirement? If you’re self-employed, you may be able to deduct 100% of your (and your spouse’s) Medicare premiums without having to itemize or meet the 7.5% threshold.
The self-employed health insurance deduction lowers your taxable income directly. You can claim it in addition to the standard deduction, so you don’t have to choose between the two.
You must meet certain conditions:
- Net profit: You must report a net profit from your business. And you can’t deduct more in premiums than your business actually earned.
- No double dipping: You and your spouse can’t be eligible for other health coverage through an employer.
To calculate the exact amount you’ll deduct if you’re self-employed, use IRS Form 7206.
Medicare expenses that are deductible
Medicare recipients may incur a variety of medical expenses that their insurance doesn't cover, from long-term care to lodging during a trip to receive medical care. Some of these expenses may be tax-deductible, within limits. According to the IRS, tax-deductible medical expenses include:
- Artificial teeth.
- Bandages.
- Capital expenses, such as what you pay to add ramps to your home or widen doorways.
- Eye exams and eyeglasses.
- Guide dog or service animal costs.
- Hearing aids.
- Long-term care insurance premiums.
- Nursing home expenses, if you’re there principally for medical care.
- Personal protective equipment, such as masks and hand sanitizer.
- Psychiatric care.
- Transportation, if it's primarily for medical care.
- Wheelchair.
- Wig, if a doctor advises one.
Medicare expenses that aren’t deductible
Not every medical cost counts toward your deductible expenses. The following items can't be included:
- Cosmetic surgery.
- Health club dues.
- Health savings account (HSA) contributions and anything paid for by an HSA.
- Medicines or drugs from other countries.
- Nonprescription drugs or medicines.
- Teeth whitening.
- Anything insurance reimburses.
Next steps: How to claim your Medicare tax deduction
If you plan on deducting your Medicare expenses, you’ll want to gather the following forms:
- SSA-1099: If your Medicare Part B or other premiums were deducted directly from your Social Security benefits, you’ll find those totals on this form. It’s mailed out each January, and you can also download a copy online.
- Plan documents and bank statements: For Part C (Medicare Advantage), Part D and Medigap premiums, you won’t get a tax form in the mail. Instead, you can look through your plan documents and/or bank statements to see how much you paid
- Medicare Summary Notices (MSN): These arrive every six months. They can help you track your out-of-pocket deductibles and copays for Part A and Part B services.
- Medical receipts & invoices: Keep an itemized folder for any medical expenses not covered by insurance.
- IRMAA Notice: If you pay a high-income surcharge, the Social Security Administration sends you an initial determination notice. Your IRMAA premiums should show up on the SSA-1099 form, but this notice can help you verify the math.
As with much of tax law, deductions for Medicare and other health care expenses are complicated. IRS Publication 502 offers details on medical expense deductions, but it’s a lot to digest. Deductions also work differently if you’re self-employed.
You need to determine whether itemizing deductibles is your best overall tax strategy. It's best to consult with a tax professional before claiming any deductions.
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- 1. Urban-Brookings Tax Policy Center. What is the standard deduction?. Accessed Mar 27, 2026.
- 2. IRS.gov. One, Big, Beautiful Bill Act: Tax deductions for working Americans and seniors. Accessed Mar 27, 2026.
