Are you looking into selling a property soon? You may have heard that selling property results in paying a higher cost for your Medicare premiums. Is this true? And, if so, what is that cost going to be? We will discuss in this article the different situations where property sales could affect your Medicare costs.

Will My Medicare Part B & D Premiums Change?

Many people think that selling a property will make their Part B and Part D premiums increase. The truth is, it is improbable that your premiums will change if you sell a property. The idea of a premium increase when you sell a property comes from a Medicare system in place called Income Related Monthly Adjusted Amount (IRMAA).

IRMAA is an increased premium that applies to individuals with a gross income above $88,000 and couples above $176,000 in 2021. If you are close to making one of those amounts in your circumstance, you may worry that the profit from a property sale would put you over the top. There are some situations where you can get out of an increased premium. Keep reading below for ways to get out of it.

How to Appeal a Premium Increase

If you did make an amount on a property sale that puts your income over one of the amounts that would increase your premium, do not fret! It is possible to appeal a premium increase. You will appeal the increase through the Social Security Administration. It will take the federal government two years to catch up with your property sale.

For example, if you sell a property in 2021, the federal government will not catch up with it until 2023. Since the timeline since you sold that property was so long ago, you can appeal this with a qualifying change of life event. These events include a spouse’s death, work reduction, no longer working, or divorce.

These events involve a loss of income, so you can show that your overall income went down even though you made a profit on the property sale. If your appeal is successful, Medicare will amend any premium increases.

Final Home Exclusion

Tax laws allow you to exclude the sale of your final home. A final home means that you won’t be investing the profit from the property sale into another property. Suppose you purchase another property, or your profit from the sale is significant enough to trigger an IRMAA adjustment. In that case, you will see a premium increase. The final home exclusion is a great way to avoid a premium increase if this situation relates to you.

Advising with a Tax Professional

While all this information shared is helpful, it is a great idea to advise a tax professional. A tax professional can look at your earnings for the year and your profit from your property sale and analyze what your next steps should be.

Chances are, your profit will not affect your IRMAA status, and you will be fine. Or it could affect your IRMAA status, and you need to file an appeal or show that it was your final home. With either option, a tax professional can help advise you which situation is best for you if it applies. Find a tax professional in your area by searching online, word of mouth from a friend, or calling around.


Fortunately, in most cases, selling a property will not affect your Medicare premiums at all. When you make close to $88,000+ a year as an individual or $176,000+ a year as a couple in 2021, you will be subject to premium increases. If you do get a premium increase, there are two situations where you can get that increase appealed.

First, you can appeal the increase with a qualifying change of life event such as a divorce, a spouse’s death, loss of work, etc. Second, you can appeal the premium increase if it is the sale of a final home, meaning the profit will not go into purchasing another property. This article contains lots of helpful information. However, it is always great to speak with a tax professional to ensure you do what is best for your situation.