If you buy health insurance on the ACA marketplace (HealthCare.gov or your state exchange), the government may pay part of your monthly premium for you. That help is called the premium tax credit, and whether you get it — and how much — comes down to two numbers: your household size and your household income relative to the federal poverty level (FPL).
Here is how the math works. Each year the IRS sets an applicable percentage: the share of your income you are expected to pay toward the benchmark Silver plan. For coverage year 2026 that share runs from 2.1% of income (below 133% of FPL) up to 9.96% (300–400% of FPL), sliding higher as income rises. Your credit is the benchmark Silver plan's annual premium minus your expected contribution. Example: a 2-person household with $50,000 of income sits at about 236% of FPL, so their expected contribution is roughly 7.9% of income (~$3,970/year). Against a $580/month ($6,960/year) benchmark Silver plan, the estimated credit is about $2,990/year, or $249/month.
What counts as income is MAGI (modified adjusted gross income): wages, self-employment earnings, unemployment, taxable Social Security, investment income and retirement withdrawals. Child support, gifts and workers' compensation do not count. For 2026 coverage the marketplace uses the 2025 poverty guidelines ($15,650 for one person, +$5,500 per additional person), and Alaska and Hawaii have higher tables. Also note: you generally cannot take the credit if you are offered affordable employer coverage, and you must file a tax return.
How to use the health insurance subsidy calculator
- Enter your household size — yourself plus spouse and any tax dependents.
- Enter your estimated annual MAGI for the coverage year, not last year. Include all income sources listed above.
- Enter the benchmark Silver plan's monthly premium — the second-lowest-cost Silver plan where you live (find it on HealthCare.gov; the default is a national ballpark).
- Click "Estimate my subsidy" to see your FPL percentage, expected contribution, and estimated monthly and annual credit.
Tips for an accurate estimate
- Estimate MAGI for the coverage year as best you can — if your actual income ends up higher, you may owe part of the credit back at tax time.
- Report income changes during the year on the marketplace so your advance credit adjusts and you avoid a surprise tax bill.
- Choose a Silver plan if your income is under 250% of FPL: you unlock cost-sharing reductions that lower deductibles and copays too.
- Shop during open enrollment (typically Nov 1 – Jan 15); outside that window you need a qualifying life event.
What changed for 2026: the enhanced credits expired
The pandemic-era enhanced premium tax credits expired at the end of 2025. For 2026 the applicable percentages are noticeably higher than 2025 (the 2.1% starting rate, for instance, was effectively 0% under the enhancements), and the 400% of FPL cliff is back: above 400% of FPL there is no premium tax credit at all in 2026. If your income is near a threshold, small changes can swing your net premium significantly — worth checking before you lock in a plan.
Frequently asked questions
What income counts for ACA subsidies?
ACA subsidies use MAGI: wages, self-employment income, unemployment, taxable Social Security, investment income and retirement withdrawals. Child support, gifts, inheritances and workers' compensation do not count.
Which FPL numbers does the 2026 coverage year use?
Eligibility for the 2026 coverage year is based on the 2025 federal poverty guidelines published the January before: $15,650 for a 1-person household, $21,150 for 2, $26,650 for 3, $32,150 for 4, plus $5,500 for each additional person (48 contiguous states).
Can I get a subsidy above 400% of the poverty level in 2026?
No. The enhanced credits that removed the 400% FPL cap expired at the end of 2025, so in 2026 there is no premium tax credit above 400% of FPL.
What are cost-sharing reductions?
Extra savings available only on Silver plans for households under 250% of FPL. They lower deductibles, copays and out-of-pocket maximums on top of any premium tax credit.
What if my income is below 100% of FPL?
You generally do not qualify for premium tax credits; you may qualify for Medicaid instead if your state expanded it. In non-expansion states this can leave a coverage gap.