ACA Subsidy Calculator
Premium tax credit for 2026 and 2027 Marketplace coverage
Last updated: October 2026 · Rev. Proc. 2025-25 (2026) and Rev. Proc. 2026-26 (2027)
Your household
People on your tax return
Look up one 40-year-old in your ZIP code on HealthCare.gov, then scale by age.
Separate with commas. Estimated benchmark: $2,058.69 a month.
Leave blank to use the benchmark plan.
How your credit is worked out
- Applicable percentage at 369.7% of the poverty line: 10.22%
- Expected contribution: $80,000 x 10.22% = $8,176.00 a year ($681.33 a month)
- Benchmark plan: $2,058.69 x 12 = $24,704.23 a year
- Credit: benchmark minus contribution = $16,528.23
- Distance to the 400% cliff ($86,560): $6,560 of extra income would end the credit.
2027 applicable percentages for this household
| Income, % of poverty line | Your income range | Max share of income for benchmark |
|---|---|---|
| Up to 133% | $21,640 to $28,781 | 2.15% |
| 133% to under 150% | $28,781 to $32,460 | 3.23% to 4.30% |
| 150% to under 200% | $32,460 to $43,280 | 4.30% to 6.78% |
| 200% to under 250% | $43,280 to $54,100 | 6.78% to 8.66% |
| 250% to under 300% | $54,100 to $64,920 | 8.66% to 10.22% |
| 300% to 400% | $64,920 to $86,560 | 10.22% |
| Above 400% | Over $86,560 | No credit |
Within each band the percentage rises in a straight line. Source: IRS Rev. Proc. 2026-26.
How the premium tax credit works
The credit caps what you pay for a benchmark plan, the second-lowest-cost silver plan where you live, at a percentage of your income. The government pays the rest. In words: credit = benchmark premium minus (income x applicable percentage), and never less than zero.
Your income is measured against the federal poverty guidelines published the January before open enrollment. The applicable percentage starts at 2.15% below 133% of the poverty line and rises to 10.22% from 300% to 400% in 2027. Above 400% the credit stops entirely. That is the cliff.
The age estimate uses the federal default age curve: a 64-year-old's premium is 3 times a 21-year-old's, and a 40-year-old's is 1.278 times. Children 14 and under are rated at 0.765, and only the three oldest children under 21 are charged. A few states use their own curves, so treat this as an estimate and confirm on HealthCare.gov or your state marketplace.
Worked example: the cliff for 2026 coverage
A married couple aged 60 and 58 in the 48 contiguous states. The benchmark for a 40-year-old in their area is $500 a month.
- Age-rated benchmark for the couple: $500 x (2.714 + 2.548) / 1.278 = $2,058.69 a month, or $24,704.23 a year.
- Poverty line for two (2025 guidelines): $21,150. The 400% line is $84,600.
- At MAGI of $84,600 they pay 9.96% of income, $8,426.16, and the credit is $16,278.07 a year ($1,356.51 a month).
- At $84,601 the credit is $0. One extra dollar of income costs them $16,278.
- If their MAGI would have been $86,000, a $2,000 traditional IRA contribution brings it to $84,000 and restores a credit of about $16,338 a year.
For 2027 coverage the same couple's 400% line rises to $86,560 under the 2026 guidelines, and the top applicable percentage is 10.22%.
Key dates and 2026 rule changes
- Open enrollment for 2027: November 1, 2026 to January 15, 2027 on HealthCare.gov. Enroll by December 15, 2026 for coverage starting January 1. State marketplaces may differ.
- No repayment cap: from tax year 2026, if you received more advance credit than you qualify for, you repay all of it when you file. Before 2026 the repayment was capped for incomes under 400% of the poverty line.
- 400% cap is back: 2021 to 2025 had no upper income limit. 2026 and later years do, unless Congress changes the law.
- Employer coverage: if your employer offers coverage costing you more than 9.96% of household income in 2026 (10.22% in 2027) for employee-only coverage, you may qualify for the credit instead.
Frequently Asked Questions
Did the enhanced ACA subsidies expire?
Yes. The larger premium tax credits created in 2021 applied only through tax year 2025. The House passed a three-year extension on January 8, 2026, but the Senate has not, so as of October 2026 coverage in 2026 and 2027 uses the original rules: help only between 100% and 400% of the federal poverty line, and a required contribution of up to 9.96% of income in 2026 and 10.22% in 2027.
What is the ACA subsidy cliff?
If your household income is above 400% of the poverty line, you get no premium tax credit at all, however expensive the benchmark plan is. For 2026 coverage that line is $62,600 for one person and $128,600 for a family of four in the 48 contiguous states. A couple aged 60 and 58 at exactly 400% could receive around $16,000 a year; $1 more and the credit is $0.
How is the premium tax credit calculated?
Find your income as a percentage of the poverty line, look up the applicable percentage for that income, and multiply it by your income to get your expected contribution. The credit is the annual premium of the second-lowest-cost silver plan in your area (the benchmark) minus that contribution. You can apply the credit to any metal level plan; if the plan costs less than the credit, the credit is limited to the premium.
Which poverty guidelines apply to 2026 and 2027 coverage?
Coverage uses the guidelines published the January before open enrollment. 2026 coverage uses the 2025 guidelines: $15,650 for one person plus $5,500 for each additional person in the 48 contiguous states and DC ($19,550 and $6,880 in Alaska, $17,990 and $6,330 in Hawaii). 2027 coverage uses the 2026 guidelines: $15,960 plus $5,680 ($19,950 and $7,100 in Alaska, $18,360 and $6,530 in Hawaii).
Do I have to pay back advance premium tax credits?
If your actual income for the year ends up higher than you estimated, yes. Starting with tax year 2026 there is no cap on the repayment: the full excess is added to your tax bill when you file Form 8962. Before 2026, households under 400% of the poverty line had their repayment capped. Update your income estimate on your marketplace application as soon as it changes.
When is open enrollment for 2027 coverage?
On HealthCare.gov, open enrollment for 2027 runs from November 1, 2026 to January 15, 2027. Enroll by December 15, 2026 for coverage that starts January 1. States that run their own marketplace can set different deadlines.
What counts as income for ACA subsidies?
Modified adjusted gross income: your adjusted gross income plus any non-taxable Social Security benefits, tax-exempt interest and excluded foreign income, for everyone in your tax household who is required to file. Contributions to a traditional 401(k), traditional IRA or HSA lower it, which can bring a household back under the 400% line.