How ACA subsidies work in 2026
The Affordable Care Act caps what you pay for health coverage as a percentage of your income. If the benchmark plan in your area costs more than that capped percentage, a premium tax credit covers the difference — and you can apply it to any Marketplace plan. The percentage you’re expected to contribute rises with income, following a table the IRS publishes each year (Rev. Proc. 2025-25 for 2026).
The big 2026 change: the temporary enhanced subsidies of 2021–2025 — which removed the 400% FPL cap and held premiums to 8.5% of income — expired at the end of 2025. Unless Congress renews them, the 400% FPL “subsidy cliff” is back, and the contribution percentages below it are higher. This calculator uses the current 2026 table.
Estimatethis figure is an editorial estimate based on cited public sources — not a quote, not personalized advice, and not a guarantee of what any insurer will offer you.
Frequently asked questions
Who qualifies for an ACA premium tax credit in 2026?+
For 2026, households with income between 100% and 400% of the Federal Poverty Level (FPL) generally qualify for a premium tax credit, provided they are not eligible for other qualifying coverage (like affordable employer insurance or Medicare/Medicaid). The temporary enhanced subsidies of 2021–2025 — which removed the 400% cap — expired at the end of 2025, so the 400% FPL 'subsidy cliff' has returned: above 400% FPL you generally get no premium tax credit. Below 100% FPL, most people qualify for Medicaid instead (138% in states that expanded Medicaid).
How is the subsidy amount calculated?+
The subsidy (Advanced Premium Tax Credit) equals the cost of the benchmark plan — the second-lowest-cost Silver plan in your area — minus your 'expected contribution.' Your expected contribution is a percentage of your income set by the IRS 2026 applicable-percentage table, which rises with income. Whatever the benchmark plan costs above that capped contribution is paid by the tax credit, which you can apply to any Marketplace plan. Because the benchmark premium varies by age, county, and plan, this calculator shows your exact contribution cap and lets you enter your area's benchmark to estimate the dollar subsidy.
What income should I use?+
Use your projected 2026 Modified Adjusted Gross Income (MAGI) for your whole tax household, not last year's income. Marketplace subsidies are based on estimated current-year income. If your income changes during the year, update it on the Marketplace so your Advanced Premium Tax Credit is reconciled correctly at tax time.
What are Cost-Sharing Reductions (CSR)?+
Separate from the premium subsidy, households between 100% and 250% FPL who choose a Silver plan also receive Cost-Sharing Reductions — lower deductibles, copays, and out-of-pocket maximums. CSRs can substantially improve the value of a Silver plan at those income levels, which is why Silver is often the best choice in that range even though Bronze plans have lower premiums.
Is this calculator's estimate exact?+
It is an estimate. The contribution cap (the most you'd pay for the benchmark plan) is computed directly from the IRS 2026 applicable-percentage table and is precise for the 48 contiguous states and D.C. The dollar subsidy depends on your area's actual benchmark premium, which varies by age, county, and plan year — so enter your benchmark from healthcare.gov for a closer figure. Alaska and Hawaii use higher federal poverty guidelines. Always confirm your actual eligibility and subsidy at healthcare.gov.
Related guides and tools
Jennifer Walsh
Editorial Lead, Health & Medicare
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 August 2026
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