About the ACA Subsidy Calculator
This ACA subsidy calculator estimates the premium tax credit you can receive for a 2026 Health Insurance Marketplace plan. Enter your household size, expected modified adjusted gross income (MAGI) and the monthly premium of the benchmark plan — the second-lowest-cost silver plan (SLCSP) in your area — and it shows your income as a percentage of the federal poverty level, the share of income you are expected to pay, and the monthly credit.
It is useful for early retirees, freelancers, gig workers and anyone buying coverage on HealthCare.gov or a state exchange who wants to know what a plan will really cost, or how a raise, IRA withdrawal or Roth conversion would change the subsidy.
By default it uses the standard 2026 schedule from IRS Rev. Proc. 2025-25 (2.10% to 9.96% of income). The enhanced credits from the American Rescue Plan and Inflation Reduction Act expired on December 31, 2025; the House passed an extension in January 2026, but as of this page’s last update no extension had become law, so the 400% FPL “subsidy cliff” applies to 2026 coverage. If Congress restores the enhanced schedule, switch the rules option. For 2026 coverage, eligibility is measured against the 2025 HHS poverty guidelines (the 2026 guidelines apply to 2027 coverage). The calculator assumes a full year of coverage with the same household, income and premiums throughout; the benchmark premium you enter already reflects ages and location.
With the default inputs, the monthly premium tax credit is $313.00. Change any value above to recalculate instantly.
How to use the aca subsidy calculator
- 1Enter your expected 2026 household MAGI, not last year’s income.
- 2Enter your household size and choose where you live.
- 3Look up the benchmark (second-lowest-cost silver) premium on HealthCare.gov and enter it.
- 4Enter the full premium of the plan you actually want to buy.
- 5Pick the subsidy rules in force and read your monthly credit and net premium.
Formula and method
First your MAGI is divided by the poverty guideline for your household size (2025 guidelines: $15,650 for one person plus $5,500 per extra person in the 48 states) to get your income as a percentage of the federal poverty level. That percentage sets your applicable percentage — the share of income you are expected to pay for the benchmark silver plan. Within each band the rate rises on a straight line, as the IRS schedule does.
The credit is the yearly benchmark premium minus that expected contribution. It can be used on any metal-level plan but can never exceed the premium of the plan you pick. Under the standard 2026 schedule (2.10% to 9.96%), households above 400% FPL get no credit; under the enhanced schedule nobody pays more than 8.5% of income.
- MAGI
- Modified adjusted gross income of the tax household
- FPL
- Federal poverty guideline for the household size
- AP%
- Applicable percentage from the IRS schedule
- Benchmark
- Monthly premium of the second-lowest-cost silver plan
Worked examples
Single adult earning $40,000
$40,000 is about 255.6% of the $15,650 poverty guideline, which puts the applicable percentage at about 8.61%. The expected contribution is roughly $3,444 a year, so the credit is $7,200 − $3,444 ≈ $3,756, or about $313 a month, leaving $287 to pay on a $600 plan.
Family of four earning $80,000, $1,500 benchmark
The four-person guideline is $32,150, so $80,000 is 248.8% FPL and the rate is about 8.40%. Expected contribution ≈ $6,718 a year; the credit is $18,000 − $6,718 ≈ $11,282 ($940/month). On a $1,300 plan the family pays about $360 a month.
Couple just over the 400% cliff
A couple’s guideline is $21,150, so $90,000 is 425.5% FPL. Under the standard 2026 schedule that is above the 400% cliff, so there is no credit and they pay the full $1,400 a month. Under the enhanced schedule they would pay at most 8.5% of income ($637.50/month).
Frequently asked questions
Who qualifies for an ACA premium tax credit in 2026?+
Generally, people buying Marketplace coverage whose household income is at least 100% of the federal poverty level, who are not eligible for affordable employer coverage, Medicare or Medicaid, and who file a joint return if married. Under the standard 2026 rules income must also be no more than 400% of the poverty level.
What is the ACA subsidy cliff?+
Under the original ACA rules, the credit stops completely once household income passes 400% of the poverty level. One extra dollar of income can cost thousands in lost subsidy. The enhanced 2021–2025 rules removed the cliff by capping premiums at 8.5% of income instead.
What income counts for the ACA subsidy?+
Modified adjusted gross income: your AGI plus untaxed foreign income, non-taxable Social Security benefits and tax-exempt interest. Traditional IRA and HSA contributions reduce it, while Roth conversions, capital gains and IRA withdrawals increase it.
What happens if my income ends up different from my estimate?+
Advance credits are reconciled on your tax return using Form 8962. If your final income is higher than estimated you repay the excess; if it is lower you get the difference as a refund. Starting with 2026 coverage the former repayment caps for lower-income households were eliminated, so any excess advance credit must be repaid in full — update your Marketplace application promptly when income changes.
Why is the benchmark silver plan used?+
The law sets the credit as the gap between the second-lowest-cost silver plan premium and your expected contribution. You can apply that fixed dollar credit to a cheaper bronze plan (sometimes reaching $0) or a more expensive gold plan and pay the difference.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.
Sources
- IRS — The Premium Tax Credit: The basics
- HHS ASPE — Poverty guidelines
- HealthCare.gov — Lower costs on health insurance
- IRS Rev. Proc. 2025-25 — 2026 applicable percentage table
- HHS ASPE — 2025 poverty guidelines (detailed table)
- IRS FS-2025-10 — Questions and answers on the Premium Tax Credit (no repayment cap after 2025)