ACA Subsidy Calculator (Premium Tax Credit) United States

What the ACA subsidy calculator does

This calculator estimates the premium tax credit you may receive when you buy a health plan through the Affordable Care Act Marketplace in 2026. Under the credit, eligible households pay no more than a set share of their income toward a mid-range silver plan. The federal government covers the rest of the benchmark plan’s cost, as an advance credit or at tax time.

You enter your annual household income, the number of people in your household, and the annual premium of the benchmark silver plan for your area. The tool works out where your income falls relative to the Federal Poverty Level and the subsidy that produces.

How the premium tax credit is calculated

The calculation runs in three steps. First it builds your Federal Poverty Level. The base figure for a household of one is $15,650, and each additional household member adds $5,500. A family of four, for example, starts from the base and adds the increment three times.

Second, it converts your income into a percentage of that poverty level. A single person earning around two and a half times the poverty guideline sits near 250 percent of the FPL. This percentage is what determines your expected contribution.

Third, it reads the applicable percentage from the 2026 contribution table. That table maps income bands to the share of income a household is expected to pay, and within most bands the percentage rises smoothly as income climbs. The tool applies that percentage to your income to find your expected contribution, then subtracts it from the benchmark premium. Whatever remains is your estimated premium tax credit. If the benchmark premium is lower than your expected contribution, the credit is zero.

The 2026 return to the 400 percent cliff

The enhanced subsidies introduced during the pandemic expired before 2026. From 2021 through 2025, the American Rescue Plan Act and its extension removed the hard income limit and capped contributions at 8.5 percent of income for everyone, including higher earners. Those provisions ended on 31 December 2025.

For 2026 the older structure returns. The expected contribution percentages are higher across most income bands, and the 400 percent Federal Poverty Level cliff is back in force. Above 400 percent of the FPL there is no premium tax credit. The credit drops to zero at the line instead of tapering, so a household that earns slightly over the threshold can lose thousands of dollars in support. Households near the line can sometimes stay under it through retirement contributions or the timing of income.

A worked example

Consider a single person with a household income of 40,000 dollars and a benchmark silver premium of 9,000 dollars a year. The poverty level for a household of one is $15,650, so the income sits at roughly 256 percent of the FPL. That falls in the 250 to 300 percent band, where the applicable percentage in 2026 runs from 8.44 percent up to 9.96 percent. Interpolating within the band gives an applicable percentage of about 8.61 percent.

Applying 8.61 percent to the 40,000 dollar income produces an expected contribution of about 3,444 dollars for the year. Subtracting that from the 9,000 dollar benchmark premium leaves an estimated premium tax credit of roughly 5,556 dollars a year, or about 463 dollars a month. The household would pay the balance of the premium out of pocket.

If that same person instead earned 70,000 dollars, their income would exceed 400 percent of the poverty level. Under the 2026 rules the credit falls to zero, and they would owe the full 9,000 dollar premium themselves.

Assumptions and limitations

This tool gives an estimate, not an eligibility determination. It assumes the applicable percentage table and poverty guidelines you see, and it interpolates within income bands to smooth the contribution percentage. Real Marketplace results depend on your exact modified adjusted gross income, your state, whether you use the poverty guidelines for the coverage year, and household details such as who is claimed as a dependent.

The calculator uses the poverty guidelines for the 48 contiguous states and the District of Columbia. Alaska and Hawaii use higher guidelines, so residents there should expect a larger poverty level and a different result. The tool also assumes you are not eligible for other minimum essential coverage, such as an affordable employer plan or Medicaid, which would change or remove your eligibility.

The credit is reconciled on your federal tax return. If your actual income differs from your estimate, you may owe some of the advance credit back or receive more. Confirm your figures on HealthCare.gov or your state exchange and, where the stakes are high, with a tax professional.

About This Aca Subsidy Calculator

Use this aca subsidy calculator to get an instant, accurate estimate. The figures follow official HHS guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.