ACA Subsidy Calculator (2026)
Your Household
You + spouse + tax dependents needing coverage.
AGI + tax-exempt interest + untaxed Social Security.
Marketplace Plan
Defaulted to a national estimate — look up your exact SLCSP on HealthCare.gov or your state exchange for a precise figure.
Leave blank to assume you buy the benchmark Silver plan.
Your 2026 Premium Tax Credit
Income vs. FPL
236%
FPL for household of 2: $21,150
Applicable %
7.94%
Expected share of MAGI toward benchmark plan
Crossing $84,600 in MAGI eliminates your entire $10,910 annual credit — not just the amount over the line.
Based on your results — what to do next:
Planning a Roth conversion or early retirement?
Every extra dollar of MAGI above $21,150 costs you both tax and ACA subsidy — model your withdrawal strategy before you convert.
Self-employed and buying your own coverage?
Your self-employed health insurance premiums may be deductible, which lowers the MAGI used for this 7.94% contribution — see the full picture.
See your full 2026 tax picture
A household MAGI of $50,000 also determines your federal tax bill — see net take-home pay after taxes.
Your ACA premium tax credit is the gap between the benchmark Second-Lowest-Cost Silver Plan (SLCSP) premium in your area and the percentage of your household income (MAGI) the IRS expects you to contribute, based on the 2026 Applicable Percentage Table. Households above 400% of the Federal Poverty Level receive no credit at all — the subsidy cliff that returned for 2026 coverage.
How the Premium Tax Credit Is Calculated
The ACA marketplace calculates your subsidy using your Modified Adjusted Gross Income (MAGI) relative to the Federal Poverty Level (FPL) for your household size and state. That ratio maps to an applicable percentage on a sliding scale set annually by the IRS.
| Income (% of FPL) | 2026 Applicable % |
|---|---|
| Under 133% | 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% |
| Over 400% | No credit (cliff) |
Worked example:A household of two in the lower 48 states with $50,000 MAGI is at about 236% of the 2026 FPL ($21,150 for household size 2). That falls in the 200%–250% band, interpolating to roughly a 7.9% applicable percentage — a required annual contribution near $3,950. If the local benchmark Silver plan costs $14,880/year ($1,240/mo), the household's premium tax credit is about $10,930/year, or roughly $911/mo.
⚠️ Expert Pro-Tip
The 400% FPL cliff makes the last dollar of income before it extremely expensive. Because losing the credit is an all-or-nothing event, one extra dollar of MAGI near the cliff can cost thousands in lost subsidy — often a much higher effective tax rate than your federal bracket alone. Before taking a large capital gain, bonus, or Roth conversion, run the numbers here first, and consider a pre-tax 401(k), Traditional IRA, or HSA contribution to bring MAGI back under the threshold.
Frequently Asked Questions: ACA Premium Tax Credits
How is my 2026 ACA premium tax credit calculated?
The IRS compares your household income (Modified Adjusted Gross Income, or MAGI) to the Federal Poverty Level (FPL) for your household size and state. That ratio determines your "applicable percentage" — the share of MAGI the government expects you to pay toward the second-lowest-cost Silver plan (SLCSP) in your area, also called the benchmark plan. Your premium tax credit is the difference between the full SLCSP premium and that required contribution. If you buy a cheaper plan than the benchmark, you keep 100% of the savings, up to the point the plan is free. If you buy a more expensive plan, you pay 100% of the difference.
What changed with ACA subsidies for 2026?
The enhanced premium tax credits created during COVID (and extended through 2025) expired at the end of 2025. Starting with 2026 coverage, two things changed: the 400% FPL "subsidy cliff" is back — households above 400% of the Federal Poverty Level get $0 in tax credit no matter how expensive their local premiums are — and the applicable percentage table jumped sharply higher at every income tier, roughly doubling or tripling the required contribution for many lower-income households compared to 2025.
What is the Second-Lowest-Cost Silver Plan (SLCSP)?
The SLCSP, or "benchmark plan," is the second-cheapest Silver-tier plan available to your household in your ZIP code. It is not necessarily the plan you buy — it is only used to calculate your tax credit. You can find your exact SLCSP premium by entering your household details on HealthCare.gov (or your state exchange) with a high placeholder income, filtering to Silver plans, and taking the second-lowest price shown.
What happens if I go even $1 over 400% of the Federal Poverty Level?
You lose the entire premium tax credit for the year, not just the portion above the line — this is why it is called a "cliff" rather than a phase-out. If you received advance payments of the credit during the year based on an estimate that turned out to be under 400% FPL, but your actual year-end MAGI comes in above it, you will have to repay all of the advance credit when you file Form 8962 with your tax return. Common ways households manage this include Traditional IRA or 401(k) contributions, HSA contributions, and timing capital gains or Roth conversions to stay under the threshold.
What if my income is below 100% of the Federal Poverty Level?
In most states (those that expanded Medicaid), households between 100% and 138% of FPL are directed to Medicaid rather than a subsidized Marketplace plan, and households below 100% FPL are Medicaid-eligible in those states. In the states that have not expanded Medicaid, there can be a coverage gap: income below 100% FPL doesn't qualify for Marketplace subsidies or Medicaid. The minimum-income rule is only checked at enrollment, not when you file your taxes — if your income unexpectedly drops during the year, you generally are not penalized as long as your original estimate was made in good faith.
Does a Roth conversion or capital gains harvesting affect my ACA subsidy?
Yes. Roth conversions, capital gains, and any other increase to your MAGI count toward the ACA income test, even though they are separate from regular wages. Because the required contribution is a percentage applied to your entire MAGI (not just the marginal increase), a large one-time conversion can sharply reduce your subsidy or push you over the 400% cliff entirely. Early retirees managing ACA coverage often plan conversions carefully around these thresholds rather than converting a large lump sum in a single year.