FPL Percentage
Tax Glossary Term
Definition
FPL percentage (Federal Poverty Level percentage) is a household's income expressed as a percentage of the Federal Poverty Level, used to determine eligibility for ACA marketplace subsidies (premium tax credits), Medicaid, and CHIP. To calculate it, divide household income by the FPL guideline for the household size, then multiply by 100. For 2026 marketplace coverage, the IRS uses the 2025 HHS Poverty Guidelines under the prior-year rule (26 U.S.C. §36B(d)(3)(A)). A single person's FPL is $15,650. At 400% FPL, the subsidy cliff applies and premium tax credits drop to zero. The applicable percentage table in Rev. Proc. 2025-25 determines how much of income the household is expected to contribute toward premiums at each FPL bracket, ranging from 2.1% at the lowest bracket to 10.0% at 300–400% FPL.
Example
Single person, household income $50,000.
FPL for 1 person = $15,650.
FPL percentage = $50,000 ÷ $15,650 × 100 = 319%.
Since 319% is between 300% and 400% FPL, the applicable percentage is 10.0%.
Expected premium contribution = $50,000 × 10.0% = $4,980/year.