Are Medicare Premiums Tax Deductible For Seniors?

Medicare became a hot topic in 2025, with funding cuts meaning big changes coming up for Medicare recipients in 2026. But whether the cost of your Medicare plan is increasing or not, it pays to know your health plan tax rights. The IRS allows certain medical expenses to be deducted from one's taxes, so does this include Medicare premiums? The short answer is yes, Medicare premiums can be tax deductible under specific conditions. However, Medicare premiums aren't generally among the most important tax breaks, as they don't tend to have that great of an impact on what you owe. Still, every little bit helps. To make sure you're not missing out on any tax breaks — much less filing any illegal tax deductions — it's important to understand the rules and how to go about it.

Now, before you get too excited about the prospect of another tax deduction, the reality is that many Medicare recipients don't actually have premiums to deduct. If you qualify for premium-free Medicare Part A, then it will not be eligible for a tax deduction because you're not actively paying for coverage. However, Medicare Part B and Part D do come with premiums, as does Medicare Part C (Medicare Advantage), depending on the specific plan chosen. It's these premiums that may be eligible for deduction if other criteria are met.

As noted, Medicare expenses and premiums are only eligible for a tax deduction under specific conditions. To start, total medical costs (Medicare premiums included) have to clear a certain bar: You can only deduct the portion of your qualifying expenses that exceeds 7.5% of your adjusted gross income (AGI). You'll also you'll need to itemize your tax deductions (instead of taking a standard deduction) to be eligible. If you're still working and are self-employed, the rules are a bit different. You can still deduct your premiums, but you'll need to fill out Schedule 1 of your Form 1040.  This will be considered an "above-the-line" deduction, which means it'll lower your AGI.

Even if you can't deduct your Medicare premiums, that doesn't automatically mean you won't be able to deduct any medical expenses from your taxes. If you're doing an itemized deduction, you may still have other medical and dental expenses that could be eligible if you paid for them out of pocket. 

Still, deducting medical costs may not always be the best decision. If you're not sure whether to itemize your deductions or not, try adding things up before filing to see whether these itemized deductions will actually exceed what you'd get with a standard deduction. Starting in 2026, some retirees will also be eligible for an additional "senior deduction" on top of the standard deduction, so be sure to consider all of your options.