ACA Subsidy Calculator
Estimate your 2026 Affordable Care Act premium tax credit based on household income, size, and FPL %. See the subsidy cliff at 400% FPL.
Household Info
2026 Premium Tax Credit Estimate
Estimated Annual PTC
$14,942
≈ $1,245/mo direct-to-insurer subsidy
FPL %
248.8%
Expected Contribution
6.52% of income
Annual Expected Pay
$5,216
Benchmark Silver (SLCSP)
$20,158
How the ACA Premium Tax Credit works in 2026
If your household income falls between 100% and 400% of the Federal Poverty Level (FPL), you qualify for an advance Premium Tax Credit (PTC) that the IRS pays monthly to your insurer. You pay only the difference between the benchmark Second-Lowest-Cost Silver Plan (SLCSP) and an "applicable percentage" of your income.
The 2026 subsidy cliff
The American Rescue Plan Act (ARPA) enhanced subsidies expired after 2025. For 2026, eligibility reverts to the pre-ARPA rule: no PTC above 400% FPL. For a single adult that cliff is roughly $60,240; for a family of four, ~$124,800. One dollar over and you lose the whole subsidy — potentially $8k-$15k/year for older households.
Pre-ARPA 2026 applicable percentages
- 100-133% FPL — 2.07% of income
- 133-150% FPL — 3.10% of income
- 150-200% FPL — 3.10% to 4.14%
- 200-250% FPL — 4.14% to 6.52%
- 250-300% FPL — 6.52% to 8.33%
- 300-400% FPL — 8.33% to 9.96%
- Above 400% FPL — cliff, no subsidy
How to stay under the cliff
Modified AGI is reduced dollar-for-dollar by pre-tax 401(k), Traditional IRA, HSA (if HSA-eligible plan), and self-employed health insurance deduction. A family $5k over the cliff can usually drop under with a 401(k) top-up — saving far more in subsidy than the contribution itself.
Common questions about ACA Subsidy
What is the ACA subsidy cliff in 2026?+
With ARPA's enhanced subsidies having expired after 2025, 2026 reverts to the pre-ARPA rule: no Premium Tax Credit above 400% of the Federal Poverty Level. For 2026 that's roughly $60,240 for a single adult and $124,800 for a family of four. Earn $1 over the cliff and you lose your entire subsidy — potentially $8,000-$15,000 per year for older households. Planning AGI via HSA, traditional 401(k), and charitable giving becomes critical near the cliff.
How is the Premium Tax Credit calculated?+
PTC = Second-Lowest-Cost Silver Plan (SLCSP) in your area, minus an "applicable percentage" of your household income. That applicable percentage slides from 2.07% at 133% FPL to 9.96% at 400% FPL under 2026 rules. If the SLCSP costs more than your expected contribution, the IRS pays the difference directly to your insurer each month (Advanced PTC). Reconcile on Form 8962 at tax time.
What counts as household income for ACA?+
Modified AGI: your AGI plus tax-exempt interest, non-taxable Social Security, and foreign earned income exclusion. It includes everyone required to file on your tax return. Pre-tax 401(k), traditional IRA, HSA contributions, and self-employed health premiums reduce MAGI — powerful levers to stay below 400% FPL or qualify for cost-sharing reductions below 250% FPL.
What are Cost-Sharing Reductions (CSR)?+
Separate from the PTC, CSRs slash deductibles and out-of-pocket max — but only on Silver-tier plans and only for households between 100%-250% FPL. A Silver CSR plan at 150% FPL functions like Platinum coverage (94% actuarial value) for a Silver premium. Always pick Silver on the exchange if you're under 250% FPL; pick non-Silver otherwise.
Can I get ACA subsidies if my employer offers coverage?+
Only if the employer plan is "unaffordable" — meaning the self-only premium exceeds 9.02% of household income (2026 affordability threshold) or fails the 60% minimum-value test. The "family glitch" was fixed in 2023, so family coverage affordability is now tested separately. If employer coverage meets both tests, you're locked out of marketplace subsidies even if the family cost is crushing.
What if my income changes mid-year?+
Report income changes promptly at HealthCare.gov. If you under-report and end up earning more, you'll owe back excess Advanced PTC on your tax return (repayment caps apply below 400% FPL; unlimited clawback above). Over-report and you get a refund. For gig workers and 1099 contractors, err on the side of estimating high — avoids surprise tax bills in April.
How do HSAs interact with ACA plans?+
HSA-eligible Bronze and some Silver plans are labeled "HSA-qualified" on the exchange. Pairing a High-Deductible Health Plan with HSA contributions ($4,400 single / $8,750 family in 2026) gives a triple tax benefit AND reduces MAGI — potentially moving you into a better subsidy bracket. Ideal for healthy households earning close to 400% FPL who want to stay under the cliff.