ACA Subsidy Calculator
This calculator estimates your 2026 ACA marketplace subsidy (the premium tax credit) for a health plan bought on HealthCare.gov or a state exchange. Enter your household income, household size, and the benchmark (second-lowest silver) plan premium for your area, and it estimates your monthly subsidy and net premium. For 2026 the enhanced subsidies have expired, so households above 400% of the federal poverty line receive no credit. The subsidy compares your income to the poverty line, applies the IRS applicable-percentage table, and subtracts your expected contribution from the benchmark premium. The benchmark premium varies by age and location, so you enter it from HealthCare.gov; the poverty guidelines and percentage table are sourced from HHS and the IRS.
A household of 2 earning $40,000 (189% of the poverty line) with a $600/mo benchmark plan gets an estimated $397.47 monthly subsidy, leaving a net premium of $202.53/month.
How the 2026 subsidy is calculated
FPL % = household income / poverty line for your size x 100
applicable % = interpolated in your FPL band (2.1% to 9.96%)
expected contribution = income x applicable % / 100
subsidy = max(0, benchmark annual premium - expected contribution)
The premium tax credit (PTC) equals the second-lowest-cost silver plan (benchmark) premium minus the household's expected contribution, where the expected contribution is household income times the applicable percentage from the table above (interpolated within each FPL band). For coverage year 2026 the enhanced subsidies (ARPA/IRA) have EXPIRED: the 400% FPL income cap is reinstated, so households above 400% of the poverty line receive no credit. The applicable-percentage table is from IRS Rev. Proc. 2025-25 (2026). Per 26 CFR 1.36B-1(h), the 2026 coverage year uses the 2025 HHS poverty guidelines (in effect at the November 2025 open enrollment). The benchmark premium varies by age and location and is a user-entered input from HealthCare.gov, never asserted (Tenet 3).
The 2026 cliff, and what the net premium hides
The number that trips people up in 2026 is not the subsidy, it is the cliff. With the enhanced pandemic-era credits expired, 2026 restores the hard 400% ceiling: a family of two qualifies up to $84,600 of income (400% of the $21,150 poverty line), and one dollar above that drops the credit straight to zero. Just under the line the credit can be worth several thousand dollars a year, so income you can control (a deductible IRA or HSA contribution that lowers your MAGI) is often the difference between a large subsidy and nothing at all.
The second trap is the benchmark. Your credit is fixed at the second-lowest silver plan's premium minus your expected contribution (from 2.10% of income at the bottom of the scale up to 9.96% near 400%), and it is not tied to the plan you actually buy. Apply that same dollar credit to a cheaper bronze plan and your net premium can fall to zero; choose a richer gold plan and you pay the difference. The net premium shown here assumes you stay on the benchmark silver plan.
One detail the single premium number hides: below 250% of poverty (the example household sits at 189%), a silver plan adds cost-sharing reductions that quietly cut the deductible and out-of-pocket maximum, so silver is usually the smart tier there even when bronze looks cheaper. And because you enter estimated annual MAGI, guessing too low means repaying excess advance credit at tax time, so it is safer to estimate on the high side.
ACA subsidy: frequently asked questions
What is the ACA premium tax credit?
The premium tax credit (PTC) is a subsidy that lowers the cost of a health plan bought on the ACA marketplace (HealthCare.gov). It equals the cost of the benchmark (second-lowest silver) plan minus what you are expected to contribute, which is a percentage of your income set by the IRS. The credit can be paid in advance directly to your insurer to lower your monthly premium.
Who qualifies for a subsidy in 2026?
For 2026, households with income between 100% and 400% of the federal poverty line generally qualify. The enhanced subsidies from 2021-2025 have expired, so the 400% "subsidy cliff" is back: above 400% of the poverty line there is no premium tax credit. Below 100% you may be eligible for Medicaid instead.
What is the benchmark premium and where do I find it?
The benchmark is the second-lowest-cost silver plan available to your household, which varies by your age, location and family size. It is not a single national figure, so you enter it yourself. You can look it up on HealthCare.gov (or your state marketplace) by getting a quote for silver plans in your area.
How is the subsidy calculated?
First your income is compared to the federal poverty line for your household size to get your FPL percentage. That sets your "applicable percentage" (from 2.1% at the low end up to 9.96% near 400% FPL). Your expected annual contribution is income times that percentage; your subsidy is the benchmark annual premium minus that contribution, never less than zero. Per IRS rules, 2026 coverage uses the 2025 poverty guidelines.
Official sources
- 2026 applicable-percentage table: IRS Rev. Proc. 2025-25.
- 2025 federal poverty guidelines: HHS ASPE. As at 15 July 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 15 July 2026. See our methodology. An estimate, not tax or insurance advice; your exact credit is set on your tax return and at enrollment.