Health Insurance
MAGI (Modified Adjusted Gross Income)
MAGI is your adjusted gross income plus certain additions like tax-exempt interest and foreign income, used to assess marketplace and Medicaid subsidy eligibility.
Last reviewed: May 2026 · Editorial methodology
Definition
Modified Adjusted Gross Income (MAGI) is the income metric used by the ACA to determine eligibility for premium tax credits, cost-sharing reductions, and Medicaid in expansion states. MAGI starts with your IRS Adjusted Gross Income (AGI) and adds back specific items including tax-exempt Social Security benefits, tax-exempt interest income, and foreign earned income. Household MAGI includes the MAGI of all family members required to file a tax return, plus dependents who file a return. The resulting figure is compared against the Federal Poverty Level (FPL) to calculate subsidy amounts. For 2026 coverage, premium tax credit eligibility generally begins at 100% FPL ($15,650 for a single adult) and there is no upper income cap due to extended subsidy enhancements. Medicaid MAGI eligibility varies by state but typically applies to adults earning up to 138% FPL in expansion states. Income estimates submitted to the marketplace are reconciled against actual IRS-reported income at tax time, which can result in owing back advance credits if income was underestimated.
Where this term matters
💡 Tip
Related terms
Related guides
Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
Get Insurance Rate Alerts
We monitor rate filings in all 50 states. Get notified when rates change in your area — and discover new ways to save.
- ✓State-specific rate change alerts
- ✓Seasonal enrollment deadline reminders
- ✓Expert tips to lower your premiums
- ✓New coverage options in your state
Free forever. Unsubscribe with one click. No spam, ever.
Important Disclaimer
This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.