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Tax Year 2026Updated July 17, 2026

ACA Premium Subsidy Calculator 2026: Marketplace Tax Credit Estimator

The Affordable Care Act (ACA) premium tax credit helps eligible households pay for health insurance purchased through the marketplace (HealthCare.gov or your state exchange). For2026, the enhanced subsidies from the American Rescue Plan Act (ARPA) and Inflation Reduction Act (IRA) have expired. The original ACA applicable percentage schedule and the 400% FPL subsidy cliff have returned. Use the calculator below to estimate your expected premium contribution.

ARPA/IRA enhancements expired in 2026

From 2021 through 2025, the ARPA and IRA temporarily made ACA subsidies more generous. Those enhancements included: eliminating the 400% FPL income cliff (so even higher-income households could qualify), capping everyone's premium contribution at 8.5% of income, and lowering the applicable percentages across all income levels. All of these enhancements expired on December 31, 2025.

Starting in 2026, the ACA reverts to its original subsidy structure under IRC §36B. The key changes compared to 2025:

  • The 400% FPL cliff is back. If your household income exceeds 400% of the Federal Poverty Level, you get zero subsidy. For a family of 4, that threshold is approximately $128,600 (using 2025 FPL as reference , verify 2026 FPL when published).
  • Higher applicable percentages. The percentage of income you're expected to pay toward premiums is higher than under ARPA/IRA, especially for middle-income households.
  • No cap for above-cliff households. Under ARPA/IRA, even those above 400% FPL paid no more than 8.5% of income. That cap no longer applies.

How the Premium Tax Credit Works

The premium tax credit (PTC) is calculated as the difference between two numbers:

  1. Benchmark premium: The cost of the second-lowest-cost Silver plan (SLCSP) in your area for your household.
  2. Expected contribution: Your household income multiplied by the applicable percentage from the table below.

Subsidy = SLCSP Premium − Expected Contribution. If the SLCSP costs $800/month and your expected contribution is $300/month, your subsidy is $500/month. You can apply this subsidy to any metal-level plan. This calculator estimates your expected contribution only , you need your local SLCSP premium (from HealthCare.gov) to determine the actual subsidy amount.

2026 Applicable Percentage Table (Pre-ARPA Schedule)

The applicable percentage determines what share of income a household is expected to pay toward the SLCSP premium. Income is measured as a percentage of the Federal Poverty Level (FPL). The percentage interpolates linearly between the initial and final values within each bracket.

Percentages are from Rev. Proc. 2025-25 section 3.01, Table 1 (inflation-adjusted for 2026). Post-ARPA rates apply; enhanced ARPA/IRA subsidies expired after 2025.

Income as % of FPLInitial Premium %Final Premium %
100% – 133%2.10%2.10%
133% – 150%3.14%4.19%
150% – 200%4.19%6.60%
200% – 250%6.60%8.44%
250% – 300%8.44%9.96%
300% – 400%9.96%9.96%
Above 400%No subsidy (the cliff)

Worked Examples

Note: These examples use 2025 FPL values, which are the correct guidelines for 2026 marketplace coverage per the prior-year rule (26 U.S.C. 36B(d)(3)(A)).

Example 1: Family of 4, $60,000 Income, Eligible

Profile: Family of 4, $60,000 MAGI, contiguous 48 states

FPL for family of 4 (2025 ref) = $32,150
Income as % of FPL = $60,000 ÷ $32,150 = 186.6%
Falls in 150%–200% bracket (initial 4.00%, final 6.50%)
Applicable percentage = 5.83%
Expected annual contribution = $60,000 × 5.83% = $3,499
Monthly contribution = $292
Subsidy = your SLCSP premium − $292/month

Example 2: Family of 4, $140,000 Income, Hits the Cliff

Profile: Family of 4, $140,000 MAGI, contiguous 48 states

FPL for family of 4 (2025 ref) = $32,150
Income as % of FPL = $140,000 ÷ $32,150 = 435.5%
435.5% > 400% FPL cliff
Subsidy = $0. Above the cliff, not eligible for premium tax credits.
Under ARPA/IRA (2021–2025), this family would have paid at most 8.5% of income ($11,900/year). In 2026, they pay full premium with no assistance.

Example 3: Single Person, $35,000 Income, Eligible

Profile: Single, age 40, $35,000 MAGI, contiguous 48 states

FPL for 1 person (2025 ref) = $15,650
Income as % of FPL = $35,000 ÷ $15,650 = 223.6%
Falls in 200%–250% bracket (initial 6.50%, final 8.10%)
Applicable percentage = 7.26%
Expected annual contribution = $35,000 × 7.26% = $2,540
Monthly contribution = $212
Subsidy = your SLCSP premium − $212/month

Frequently Asked Questions

What is the Federal Poverty Level (FPL)?
The Federal Poverty Level is an income measure published annually by the Department of Health and Human Services (HHS). It varies by household size and is used to determine eligibility for ACA premium subsidies, Medicaid, and other programs. There are separate FPL guidelines for the 48 contiguous states + DC, Alaska (higher), and Hawaii (higher). For 2025, the FPL for a single person was $15,650 and for a family of 4 was $32,150 in the contiguous 48 states.
What is the 400% FPL subsidy cliff?
The subsidy cliff means that if your household income exceeds 400% of the Federal Poverty Level, you receive zero premium tax credit | not a reduced amount. For a family of 4 using 2025 FPL as reference, the cliff is approximately $128,600. Earning even $1 above this threshold means losing the entire subsidy. This cliff was temporarily eliminated by the ARPA/IRA enhancements (2021-2025), but it returned in 2026 after those provisions expired.
What changed in 2026 for ACA subsidies?
The American Rescue Plan Act (ARPA, 2021) and Inflation Reduction Act (IRA, 2022) temporarily enhanced ACA subsidies by: (1) eliminating the 400% FPL cliff so higher-income households could still get help, (2) capping premiums at 8.5% of income for everyone, and (3) lowering the applicable percentages across the board. These enhancements expired at the end of 2025. In 2026, the original ACA applicable percentage schedule returns, the 400% FPL cliff is back, and households above 400% FPL get no subsidy at all.
How do I apply for ACA marketplace coverage and subsidies?
You can apply for marketplace coverage at HealthCare.gov (or your state's exchange if your state runs its own). Open enrollment typically runs from November 1 through January 15 each year. You can also enroll outside open enrollment if you have a qualifying life event (job loss, marriage, birth of a child, etc.). When you apply, the marketplace will estimate your premium tax credit based on your projected income.
What is the second-lowest-cost Silver plan (SLCSP)?
The SLCSP is the benchmark plan used to calculate your premium tax credit. Your subsidy equals the SLCSP premium for your area minus your expected contribution (based on income and the applicable percentage table). You can apply the subsidy to any metal-level plan (Bronze, Silver, Gold, Platinum), but the subsidy amount is always based on the SLCSP. If you choose a cheaper Bronze plan, you may pay very little or nothing out of pocket for premiums.
What income is used for ACA subsidy eligibility (MAGI)?
ACA subsidies use Modified Adjusted Gross Income (MAGI), which is your Adjusted Gross Income (AGI) plus: tax-exempt interest, non-taxable Social Security benefits, and tax-exempt foreign earned income. MAGI includes income for all members of your tax household, not just the primary filer. This is the same income reported on your federal tax return (Form 1040) with those additions.
Can I get ACA subsidies if my employer offers insurance?
Generally, you cannot get marketplace subsidies if your employer offers affordable, minimum-value coverage. Employer coverage is considered 'affordable' if your share of the premium for self-only coverage does not exceed 9.96% of your household income for 2026 (Rev. Proc. 2025-25). If the employer plan fails either the affordability or minimum value test, you may qualify for marketplace subsidies instead.
What happens if I underestimate or overestimate my income?
If you receive advance premium tax credits (APTC) based on estimated income, you must reconcile on your tax return (Form 8962). If your actual income was higher than estimated, you may have to repay some or all of the excess credit. If your actual income was lower, you'll receive additional credit as a tax refund. Accurate income estimation is especially important in 2026 due to the 400% FPL cliff | crossing that threshold could mean repaying the entire subsidy.

ACA Premium Subsidy Calculator

Informational only - plan premiums vary by age and location.
Expected Premium Contribution$331/month

At $50,000 income for a household of 2, you are at 236% of the federal poverty level. Your expected annual contribution toward premiums is $3,970 ($331/month).

Note: Your actual subsidy = your area's second-lowest-cost Silver plan (SLCSP) premium minus this expected contribution. This calculator cannot determine the SLCSP premium, which varies by location and age. Use HealthCare.gov to find your SLCSP premium.

LineValue
Household Size2
Region48 States + DC
Federal Poverty Level (2-person, 2025 guidelines)$21,150
Household Income$50,000
Income as % of FPL236%
Subsidy Cliff400% FPL ($84,600)
Applicable Percentage7.94%
Expected Annual Contribution$3,970
Expected Monthly Contribution$331
Primary Enrollee Age40 (informational - premiums vary by age)