Health Insurance Subsidy Calculator
Calculate your ACA Marketplace premium tax credit to see how much the federal government will subsidize your health insurance. Useful during Open Enrollment or after an income change.
Last updated: September 2026
Formula below · 3 sources (medicare.gov, content.naic.org, Wikipedia) · Updated Sep 2026
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About this calculator
Under the Affordable Care Act, the premium tax credit caps what a household pays for the benchmark Silver plan at a set percentage of income. For 2026 coverage the enhanced credits of 2021–2025 have expired, so the original ACA rules apply. Step 1 — Poverty-line percentage: income ÷ the 2025 HHS poverty guideline used for 2026 coverage ($15,650 for one person plus $5,500 for each additional person, 48 contiguous states and DC). Step 2 — Applicable percentage (IRS Rev. Proc. 2025-25): 2.10% of income below 133% of the poverty line; 3.14%–4.19% from 133% to 150%; 4.19%–6.60% from 150% to 200%; 6.60%–8.44% from 200% to 250%; 8.44%–9.96% from 250% to 300%; and 9.96% from 300% to 400%, rising linearly within each band. Step 3 — Credit = max(0, benchmark premium × 12 − income × applicable percentage). Above 400% of the poverty line there is no credit at all (the 'subsidy cliff' is back for 2026), and below 100% you are generally not eligible — most such households qualify for Medicaid instead (below 138% in expansion states). The benchmark plan is the second-lowest-cost Silver plan in your area. Alaska and Hawaii use higher poverty guidelines, so this estimate is for the other 48 states and DC.
How to use
Suppose a household of 3 has an annual income of $60,000 and a benchmark Silver plan premium of $650/month. Step 1 — Poverty guideline for 3 people: $15,650 + 2 × $5,500 = $26,650, so income is 225.1% of the poverty line. Step 2 — Applicable percentage: 6.60% + (225.1 − 200) / 50 × (8.44% − 6.60%) = 7.525%. Step 3 — Expected contribution: $60,000 × 7.525% = $4,515.11. Step 4 — Credit: $650 × 12 − $4,515.11 = $7,800 − $4,515.11 = $3,284.89 per year, about $274 a month off the premium. A single person earning $90,000 (575% of the poverty line) gets no credit in 2026.
Frequently asked questions
How does household size affect my ACA health insurance subsidy amount?
Household size changes the poverty-line percentage, not the formula: the 2026-coverage guideline is $15,650 for one person plus $5,500 for each additional member. The same income is a lower percentage of the poverty line for a larger household, so the applicable percentage of income you are expected to pay is lower and the credit is larger. For example, $60,000 is 383% of the poverty line for one person (9.96% expected contribution) but 225% for three people (about 7.5%). Larger households also stay under the 400% cliff at higher incomes ($62,600 for one person, $128,600 for four). Always report your full tax household accurately on your Marketplace application to receive the correct credit.
What is the benchmark Silver plan and why does it matter for subsidy calculations?
The benchmark plan is the second-lowest-cost Silver-tier health plan available on the ACA Marketplace in your county. The government uses its premium to calculate your tax credit, but you can apply that credit toward any Marketplace plan. If you choose a cheaper Bronze plan, your out-of-pocket premium will be lower than if you apply the credit to a Gold plan. The benchmark premium varies significantly by location and by the ages of the people covered — older applicants face higher rated premiums — so look up your own benchmark on HealthCare.gov or your state exchange and enter it here.
What income level makes you eligible for ACA premium tax credits?
For 2026 coverage, premium tax credits are available from 100% to 400% of the federal poverty line. The American Rescue Plan Act of 2021 (extended through 2025 by the Inflation Reduction Act) had removed the 400% cliff and lowered the applicable percentages, but those enhancements expired at the end of 2025. Using the 2025 HHS guidelines that apply to 2026 coverage, 100% of the poverty line is $15,650 for one person and $32,150 for a family of four, so the 400% cliff is $62,600 and $128,600 respectively (48 states and DC). Medicaid typically covers adults below 138% of the poverty line in expansion states, so the subsidy range effectively starts there for most applicants in those states.