What this calculator shows you
- Your Tax Credit
- Per month and per year, for 2026 or 2027
- The 400% Cliff
- See exactly where the subsidy stops
- Income Moves
- What $10,000 more income does to your credit
- Roth vs Traditional
- Which withdrawals count toward ACA income
How the Credit Works
If you buy coverage on healthcare.gov or your state's marketplace, the premium tax credit caps what you pay for a benchmark plan, the second-lowest-cost Silver plan where you live, at a percentage of your income. For 2026 that percentage runs from 2.10% at the lowest incomes to 9.96% at 300% to 400% of the poverty line. The credit covers the rest of the benchmark premium, and you can apply it to any metal level.
The 400% Cliff Is Back
From 2021 through 2025, enhanced subsidies removed the upper income limit. They expired after 2025, so for 2026 coverage the credit stops above 400% of the poverty line: $84,600 for a household of two in the lower 48. One dollar over can cost thousands, especially for people in their 60s, whose premiums are the highest. A bill to restore the enhanced credits passed the House in January 2026 but had not become law as of October 2026.
What Counts as Income
ACA income (modified AGI) is your adjusted gross income plus tax-exempt interest and the non-taxable part of Social Security. Traditional IRA and 401(k) withdrawals, capital gains, dividends and wages count. Qualified Roth IRA withdrawals don't. That's why early retirees often mix Roth and taxable withdrawals to keep income in a target range.
Settling Up at Tax Time
The credit you receive during the year is based on your estimate. At tax time, Form 8962 compares it with what your actual income allows. If you earned more than estimated, you repay the difference; starting with 2026 there is no longer a cap on that repayment. Update your marketplace application when your income changes.
Questions people ask
Which poverty guidelines apply?
The ones published in January of the year before coverage. 2026 coverage uses the 2025 guidelines ($15,650 for one person in the lower 48, plus $5,500 for each additional person); Alaska and Hawaii have higher figures.
What if my income is below 100% of the poverty line?
In states that expanded Medicaid, adults under 138% of the poverty line usually qualify for Medicaid instead. In states that didn't, people below 100% generally don't qualify for the credit, the so-called coverage gap.
Can I get the credit if my job offers insurance?
Usually not, if the employer plan is considered affordable (self-only coverage costing no more than 9.96% of household income in 2026) and meets minimum value. This calculator assumes no employer offer.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.