ACA Subsidy Calculator
Marketplace premium tax credit for 2026 and 2027 coverage under current law
The ACA premium tax credit equals the premium of your benchmark plan (the second-lowest-cost silver plan) minus an expected contribution of 2.10% to 9.96% of household income for 2026 coverage (2.15% to 10.22% for 2027). The enhanced credits ended after 2025, so income above 400% of the poverty line, $62,600 for one person or $128,600 for a family of four in 2026, gets no credit. A single 40-year-old earning $32,000 with a $695 benchmark receives $515 a month.
Last updated October 2026
Method: The Form 8962 steps under the original ACA rules: household income divided by the prior year's HHS poverty guideline (decimals dropped, more than 400% means no credit), the applicable percentage interpolated from Rev. Proc. 2025-25 (2026) or Rev. Proc. 2026-26 (2027), the yearly contribution rounded to the dollar, and credit = benchmark minus contribution, capped at the plan premium. Benchmarks can be estimated from ages with the CMS default age curve and the three-oldest-children rule.
Included: 2026 and 2027 coverage, every state with the Alaska and Hawaii guidelines, household size, ages, your own plan premium, the 400% cliff, Medicaid and coverage-gap notes, and a table of the credit at other incomes.
Not included: Local premiums (enter your own), state subsidies and Basic Health Programs, the employer-coverage affordability test, immigration status rules, cost-sharing reductions, partial-year coverage and the year-end reconciliation itself. Results are estimates, not tax advice.
🩺 Household, income and premiums
Household size = you, your spouse if filing jointly, and everyone you claim as a dependent. MAGI = adjusted gross income plus tax-exempt interest, untaxed Social Security and excluded foreign income, for the coverage year.
Example value: $695 is the median 2026 benchmark for a 40-year-old across the counties of the 30 HealthCare.gov states (CMS plan data). Your county can be far lower or higher, so replace it with your own figure.
🩺 Estimated premium tax credit, 2026 coverage
📋 How the credit is figured (Form 8962 method)
- 1. Poverty line. 2026 coverage uses the 2025 HHS guideline for 1 person in the lower 48 states and DC: $15,650.
- 2. Income percentage. $32,000 ÷ $15,650 = 204.47%. Decimals are dropped, as on Form 8962 line 5: 204.
- 3. Applicable percentage. At 204% the 2026 table gives 6.75% of income (rising in straight lines between 2.10% below 133% and 9.96% from 300% to 400%).
- 4. Expected contribution. $32,000 × 6.75% = $2,160 a year, about $180 a month.
- 5. Benchmark. $695 × 12 = $8,340 a year.
- 6. Credit. $8,340 − $2,160 = $6,180: $6,180 a year.
📊 Your credit at other incomes
Same household and $695 benchmark, 2026 coverage. Monthly figures.
| % of poverty line | Income | Credit | You pay |
|---|---|---|---|
| 100% | $15,650 | $668 | $27 |
| 138% | $21,597 | $633 | $62 |
| 150% | $23,475 | $613 | $82 |
| 200% | $31,300 | $523 | $172 |
| 250% | $39,125 | $420 | $275 |
| 300% | $46,950 | $305 | $390 |
| 350% | $54,775 | $240 | $455 |
| 400% | $62,600 | $175 | $520 |
| Above 400% | $62,601 | $0 | $695 |
Rows at 100% and 138% ignore Medicaid; in expansion states adults up to about 138% are usually referred to Medicaid instead.
👪 Benchmark by person
| Age | Age factor | Monthly benchmark |
|---|---|---|
| 40 | 1.278 | $695 |
Uses the CMS default age curve (age 21 = 1.000, age 40 = 1.278, age 64+ = 3.000). In the individual market, Alabama, DC, Massachusetts, Minnesota, Mississippi, Oregon and Utah use their own curves, and CMS lists a 1:1 age ratio (no age rating) for New York and Vermont.
ACA subsidy calculator: the premium tax credit for 2026 and 2027
An ACA subsidy calculator, also searched for as an Obamacare subsidy calculator, a marketplace subsidy calculator or a premium tax credit calculator, estimates the premium tax credit that lowers the price of a health plan bought through HealthCare.gov or a state marketplace. The credit is built from three numbers: your household income, the federal poverty line for your household size, and the price of a benchmark silver plan where you live. The government sets how much of your income you are expected to pay, and the credit covers the rest of the benchmark premium.
This page follows the steps on IRS Form 8962, the form that settles the credit at tax time, so the estimate lines up with the number you will reconcile in the spring. It covers 2026 coverage and 2027 coverage, which goes on sale in the next open enrollment period.
The enhanced subsidies ended: what changed for 2026
From 2021 through 2025, temporary rules capped the expected contribution at 8.5% of income and let households above 400% of the poverty line qualify. No extension has been enacted: the IRS premium tax credit questions and answers, updated September 21, 2026, describe that expansion as covering tax years 2021 through 2025, and the IRS tables for 2026 and 2027 use the original ACA percentages. Several changes from the One Big Beautiful Bill Act (P.L. 119-21) add to that:
- No repayment cap from tax year 2026. Excess advance payments must be paid back in full (section 71305).
- No credit below 100% for lawfully present immigrants who are barred from Medicaid by their status, from 2026 (section 71302).
- No credit for plans picked in an income-based special enrollment period rather than after a life event, from 2026 plan years (section 71304).
- From 2027, among lawfully present immigrants only permanent residents, Cuban and Haitian entrants and Compact of Free Association migrants qualify (section 71301).
The premium tax credit formula
FPL % = household income ÷ poverty line (prior year, decimals dropped) expected contribution = applicable % × household income credit = benchmark premium − expected contribution credit is $0 below 100% or above 400%, and never more than your plan's premium The applicable percentage rises in straight lines between the break points in the table below. At 175% of the poverty line in 2026 it is halfway between 4.19% and 6.60%, which rounds to 5.40%. Because the contribution is a share of income, the credit grows whenever the benchmark premium grows: a household that pays its expected share is protected from a premium increase.
Applicable percentages for 2026 and 2027
| Household income, % of poverty line | 2026 coverage | 2027 coverage |
|---|---|---|
| Less than 133% | 2.10% | 2.15% |
| 133% to less than 150% | 3.14% to 4.19% | 3.23% to 4.30% |
| 150% to less than 200% | 4.19% to 6.60% | 4.30% to 6.78% |
| 200% to less than 250% | 6.60% to 8.44% | 6.78% to 8.66% |
| 250% to less than 300% | 8.44% to 9.96% | 8.66% to 10.22% |
| 300% to 400% | 9.96% | 10.22% |
| Above 400% | no credit | no credit |
The same revenue procedures set the employer affordability line, the required contribution percentage, at 9.96% for 2026 and 10.22% for 2027.
Income limits by household size
The credit for a coverage year uses the poverty guidelines published the year before. These are the 100% and 400% lines for the lower 48 states and DC:
| Household size | 2026: from (100%) | 2026: up to (400%) | 2027: from (100%) | 2027: up to (400%) |
|---|---|---|---|---|
| 1 | $15,650 | $62,600 | $15,960 | $63,840 |
| 2 | $21,150 | $84,600 | $21,640 | $86,560 |
| 3 | $26,650 | $106,600 | $27,320 | $109,280 |
| 4 | $32,150 | $128,600 | $33,000 | $132,000 |
| 5 | $37,650 | $150,600 | $38,680 | $154,720 |
| 6 | $43,150 | $172,600 | $44,360 | $177,440 |
Each extra person adds $5,500 to the 2026 line and $5,680 to the 2027 line. Alaska starts at $19,550 for one person (cliff $78,200) in 2026 and $19,950 (cliff $79,800) in 2027; Hawaii starts at $17,990 (cliff $71,960) and $18,360 (cliff $73,440).
Two worked examples
Example 1, a single 40-year-old in 2026. Household income is $32,000 and the benchmark is $695 a month. Income divided by the $15,650 poverty line is 204.47%, which Form 8962 truncates to 204. The 2026 table moves from 6.60% at 200% to 8.44% at 250%, so 204% gives 6.60% + 1.84% × 4/50 = 6.75%. The expected contribution is $32,000 × 6.75% = $2,160 a year, or $180 a month. The benchmark costs $695 × 12 = $8,340, so the credit is $8,340 − $2,160 = $6,180 a year, $515 a month. On a $350 bronze plan the credit is capped at the $350 premium and the plan costs nothing; on the benchmark plan the person pays $180.
Example 2, the cliff for a 60-year-old couple in 2026. At age 60 the default age curve prices each person at 2.714 ÷ 1.278 times the 40-year-old benchmark: $1,475.92 a month each, $2,951.85 for the couple and $35,422.16 a year. At $84,000 of income (397% of the $21,150 line) the contribution is 9.96%, or $8,366, so the credit is $27,056 a year. At $84,600, exactly 400%, it is $26,996. At $84,601 it is $0, and the full premium would take 41.7% of an $85,000 income. A $1,000 traditional 401(k) contribution that brings MAGI from $85,000 to $84,000 restores the whole $27,056.
Subsidy by income for a sample household
A single 40-year-old in the lower 48 with a $695 monthly benchmark, the median 2026 benchmark for that age across the 2,055 counties of the 30 HealthCare.gov states in the CMS plan data. Columns two to six are 2026 coverage; the last column repeats the yearly credit for 2027 coverage with the same premium.
| Income | % of poverty line | Applicable % | Yearly contribution | Yearly credit | Benchmark cost per month | 2027 yearly credit |
|---|---|---|---|---|---|---|
| $16,000 | 102% | 2.10% | $336 | $8,004 | $28 | $7,996 |
| $20,000 | 127% | 2.10% | $420 | $7,920 | $35 | $7,910 |
| $25,000 | 159% | 4.62% | $1,155 | $7,185 | $96 | $7,190 |
| $30,000 | 191% | 6.17% | $1,851 | $6,489 | $154 | $6,498 |
| $35,000 | 223% | 7.45% | $2,608 | $5,732 | $217 | $5,718 |
| $40,000 | 255% | 8.59% | $3,436 | $4,904 | $286 | $4,876 |
| $45,000 | 287% | 9.56% | $4,302 | $4,038 | $359 | $4,006 |
| $50,000 | 319% | 9.96% | $4,980 | $3,360 | $415 | $3,230 |
| $55,000 | 351% | 9.96% | $5,478 | $2,862 | $457 | $2,719 |
| $60,000 | 383% | 9.96% | $5,976 | $2,364 | $498 | $2,208 |
| $62,600 | 400% | 9.96% | $6,235 | $2,105 | $520 | $1,942 |
| $62,601 | over 400% | n/a | n/a | $0 | $695 | $1,942 |
The last row shows the cliff moving with the poverty guidelines: in 2026 one dollar over $62,600 ends the credit, while for 2027 coverage the line is $63,840, so the same income still earns $1,942. Elsewhere the 2027 column stays within $15 of 2026 up to $35,000 and falls up to $163 below it near the top, because both the poverty line and the percentages rose; actual 2027 credits will also reflect 2027 premiums.
Why age changes the credit but not what you pay
Insurers may charge a 64-year-old three times what they charge a 21-year-old, but the expected contribution depends only on income. Here is a single person with $40,000 of income in 2026 and a $695 benchmark at age 40, priced with the CMS default age curve:
| Age | Age factor | Benchmark per month | Credit per month | You pay per month |
|---|---|---|---|---|
| 21 | 1.000 | $543.82 | $257.49 | $286.33 |
| 30 | 1.135 | $617.23 | $330.90 | $286.33 |
| 40 | 1.278 | $695.00 | $408.67 | $286.33 |
| 50 | 1.786 | $971.26 | $684.93 | $286.33 |
| 60 | 2.714 | $1,475.92 | $1,189.59 | $286.33 |
Everyone pays $3,436 a year, 8.59% of $40,000. The same logic makes the cliff steepest for older households: the closer the benchmark is to three times the young-adult price, the more is lost at 400%.
How to use this calculator
- Pick the coverage year you are shopping for or reconciling.
- Choose your state so Alaska and Hawaii get their guidelines and the Medicaid notes fit your state.
- Enter household size and projected MAGI for everyone on your tax return.
- Set the benchmark: list the ages of everyone enrolling and replace the $695 example with your area's 40-year-old benchmark, or type the household benchmark from your marketplace's plan preview.
- Optionally enter the premium of the plan you want to see your net cost, then check the income table for how a raise or a retirement contribution would move the credit.
Who qualifies, Medicaid and the coverage gap
You need Marketplace coverage, household income from 100% to 400% of the poverty line, no access to affordable job-based coverage, Medicaid, CHIP or Medicare, and a joint return if you are married, with narrow exceptions for spouses living apart and victims of domestic abuse. Nobody may be able to claim you as a dependent. The calculator helps the self-employed, early retirees, gig workers and families whose employer offers no coverage, and anyone whose income sits close to 400%.
Below 100% the credit is generally unavailable. In states that expanded Medicaid, adults up to about 138% of the poverty line qualify for Medicaid instead. Medicaid.gov's eligibility table (December 2023 data) lists ten states without the adult expansion: Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin and Wyoming. Adults below 100% there can fall into the coverage gap. If the Marketplace estimated your income at 100% or more and advance payments were made, you keep the credit even if your final income lands below 100%.
Key terms
- Benchmark plan: the second-lowest-cost silver plan available to your household; Form 1095-A shows it in column B.
- Applicable percentage: the share of income you are expected to pay for the benchmark.
- Household income: the MAGI of everyone in your tax family who must file a return.
- Advance premium tax credit (APTC): the credit paid monthly to your insurer during the year.
- Reconciliation: settling advance payments against the actual credit on Form 8962.
What changes the result, and tips
- Income. The biggest lever. Traditional 401(k), traditional IRA and HSA contributions lower MAGI; Roth contributions do not.
- Household size. A new baby or a dependent parent raises the poverty line and usually the credit.
- Age and location. Older enrollees and high-premium counties get larger credits for the same contribution.
- Plan choice. The credit is fixed once the benchmark is set, so a cheaper plan lowers your cost dollar for dollar until it reaches $0.
- Report changes promptly. With no repayment cap from 2026, an income jump reported late can mean a large bill in April.
Limitations of this estimate
The $695 default is an example, not your price: in 2026 the 40-year-old benchmark was about $514 or less in the cheapest tenth of HealthCare.gov counties and about $872 or more in the most expensive tenth, and 2027 premiums appear only when window shopping opens. The age estimate assumes the federal default curve. The calculator does not test employer-coverage affordability, immigration status or special enrollment rules, and it treats coverage as a full year.
Related calculators
- To work out the AGI behind your MAGI, use the AGI Calculator.
- For the rest of your federal return, use the Income Tax Calculator.
- Families can add the Child Tax Credit Calculator and, at lower incomes, the EITC Calculator.
- To lower MAGI with tax-advantaged savings, see the HSA Calculator and the 401(k) Calculator.
Sources
- Internal Revenue Service: Rev. Proc. 2025-25 (2026 applicable percentages, 9.96% required contribution) and Rev. Proc. 2026-26 (2027 percentages, 10.22%).
- Internal Revenue Service: Questions and answers on the premium tax credit (income limits, 2021-2025 expansion, no repayment cap after 2025, employer affordability).
- Internal Revenue Service: Instructions for Form 8962 (2025) (household income, MAGI, line 5 truncation, below-100% exceptions).
- U.S. Department of Health and Human Services, ASPE: HHS poverty guidelines (2026) and the 2025 guidelines in the Federal Register.
- GovInfo: Public Law 119-21, sections 71301 to 71305.
- Centers for Medicare & Medicaid Services: market rating reforms and the default age curve, and the HealthCare.gov 2026 plan data used for the $695 median.
- Medicaid.gov: Medicaid, CHIP and BHP eligibility levels (adult expansion by state).
⚠️ Common mistakes & edge cases
Planning with the 2021-2025 rules
Older calculators and articles still show contributions capped at 8.5% and no upper income limit. For 2026 and 2027 coverage the contribution reaches 9.96% and 10.22%, and income above 400% of the poverty line gets nothing.
Using the wrong year's poverty guidelines
2026 coverage is measured against the 2025 guidelines ($15,650 for one person), not the 2026 ones ($15,960). Using the newer figure makes income look lower and the credit look larger.
Leaving untaxed income out of MAGI
Tax-exempt municipal bond interest and Social Security benefits that are not taxed both count. Near the 400% line, a few hundred dollars of overlooked income can erase the credit.
Counting only your own income
Household income includes your spouse on a joint return and any dependent who must file, such as a teenager with a summer job above the filing threshold.
Taking full advance payments on a low income guess
From tax year 2026 every dollar of excess advance credit is repaid, with no cap. If your income is uncertain, take less in advance and collect the rest as a refund.
Comparing against the wrong benchmark
The benchmark is the second-lowest-cost silver plan for your household and county, not the plan you picked or the cheapest silver. Columns A and B of Form 1095-A show the difference.
❓ Frequently asked questions
Are ACA subsidies still available in 2026?
Yes. The premium tax credit itself is permanent law. What ended were the temporary enhancements of 2021 through 2025, which capped contributions at 8.5% of income and removed the upper income limit. For 2026 coverage the original rules apply again: credits for household income from 100% to 400% of the poverty line, expected contributions from 2.10% to 9.96% of income, and full repayment of any excess advance credit.
What is the income limit for ACA subsidies in 2026?
For 2026 coverage, household income must be between 100% and 400% of the 2025 poverty guidelines: $15,650 to $62,600 for one person, $21,150 to $84,600 for two and $32,150 to $128,600 for a family of four in the lower 48 states and DC. Alaska and Hawaii are higher. For 2027 coverage the range for one person is $15,960 to $63,840 and for four people $33,000 to $132,000.
How is the premium tax credit calculated?
Divide household income by the poverty line for your family size, look up the applicable percentage for that result, and multiply it by your income to get your expected yearly contribution. The credit is the yearly premium of the benchmark plan, the second-lowest-cost silver plan for your household, minus that contribution. It cannot exceed the premium of the plan you actually buy.
What happens if my income is just over 400% of the poverty line?
You lose the whole credit, not just part of it. Under the original ACA rules there is no phase-down above 400%. A 60-year-old couple with a $2,951.85 monthly benchmark gets $27,056 a year at $84,000 of income in 2026, $26,996 at exactly $84,600, and $0 at $84,601. Reducing MAGI with pre-tax retirement or HSA contributions can keep you under the line.
Which poverty guidelines are used for 2026 and 2027 coverage?
The credit for a coverage year uses the HHS poverty guidelines published in the year before, because those are current when open enrollment starts. 2026 coverage uses the 2025 guidelines ($15,650 for one person plus $5,500 per additional person in the lower 48), and 2027 coverage uses the 2026 guidelines ($15,960 plus $5,680). Medicaid, by contrast, uses the current year's figures.
What counts as income for the ACA subsidy?
Household income is the modified adjusted gross income of you, your spouse if you file jointly, and every dependent who is required to file a tax return. MAGI is AGI plus tax-exempt interest, Social Security benefits that are not taxed and foreign earned income that is excluded. It is your projected income for the coverage year, not last year's.
What if my income changes during the year?
Report the change to the Marketplace so your advance payments are adjusted. At tax time Form 8962 compares the advance payments with the credit your actual income allows. If you received too little, the difference is added to your refund. If you received too much, you repay it, and starting with tax year 2026 there is no cap on that repayment.
Can I get a subsidy if my employer offers health insurance?
Only if the offer is unaffordable or does not provide minimum value. For an employee, coverage is unaffordable if their share of the lowest-cost self-only coverage exceeds 9.96% of household income in 2026 or 10.22% in 2027. For family members the test uses the employee's cost for family coverage instead.
Why does a 60-year-old get a bigger subsidy than a 30-year-old?
Insurers may charge older adults up to three times as much as 21-year-olds, but the expected contribution depends only on income. At $40,000 in 2026 and a $695 benchmark at age 40, a 30-year-old receives $330.90 a month and a 60-year-old $1,189.59, yet both pay the same $286.33 for the benchmark plan.
Can I use the credit on a bronze or gold plan?
Yes. The credit is sized by the silver benchmark but applied to the plan you choose. With a $515 monthly credit, a $350 bronze plan costs $0 because the credit cannot exceed the premium, while an $800 gold plan costs $285. A cheaper plan saves premium but usually means a higher deductible.
💡 Good to know
Your contribution is fixed, the premium is not
Once income sets your expected share, a higher benchmark premium raises the credit, not your cost. That is why premium increases fall almost entirely on buyers above 400%, who pay the full price, rather than on subsidized households.
One dollar can cost thousands at 400%
For the 60-year-old couple in Example 2, moving from $84,600 to $84,601 of income turns a $26,996 credit into $0. Watch year-end bonuses, Roth conversions and capital gains if you are near the line.
Medicaid and the credit do not overlap
If you qualify for Medicaid you cannot get the premium tax credit. Apply through the Marketplace and it will route you to the right program, using current monthly income for Medicaid.