How marketplace tax credits work (2026)
Most people who buy a marketplace plan get a premium tax credit that lowers the monthly price. It depends on your household's income and size and on the benchmark Silver plan where you live. Every price on this site is before the credit; the typical Silver plan is $715 a month for one 40-year-old.
Who qualifies
With household income between 100% and 400% of the federal poverty level you qualify in all states (HealthCare.gov glossary: Federal poverty level (FPL)). For 2026 coverage, HealthCare.gov uses the 2025 poverty guidelines:
| Household size | 100% FPL (2025) | 400% FPL |
|---|---|---|
| 1 | $15,650 | $62,600 |
| 2 | $21,150 | $84,600 |
| 3 | $26,650 | $106,600 |
| 4 | $32,150 | $128,600 |
| 5 | $37,650 | $150,600 |
| 6 | $43,150 | $172,600 |
48 contiguous states; amounts are higher in Alaska and Hawaii. 400% = 4 × the guideline (our arithmetic). Income means modified adjusted gross income (HealthCare.gov glossary: Federal poverty level (FPL)).
The ACA's enhanced premium tax credits expired at the end of 2025. People with income at or above 400% of the poverty level lost their subsidy entirely, and most others get a smaller one (KFF (July 8, 2026): the ACA's enhanced premium tax credits expired at the end of 2025). HealthCare.gov posts the income levels and savings for 2027 coverage on November 1 (HealthCare.gov: Lower costs on health coverage).
How the amount is figured
- Your income and household. The credit is based on the household information and estimated income on your application (HealthCare.gov glossary: Premium tax credit).
- The benchmark plan. You need the premium of the second-lowest-cost Silver plan that applies to you to figure your final credit (HealthCare.gov glossary: Second lowest cost Silver plan (SLCSP)). See the benchmark in every state.
- Any metal level. The benchmark may not be the plan you enroll in, and you can use the credit with a plan in any category (HealthCare.gov: Cost-sharing reductions).
Paying it in advance, and settling at tax time
You can use all, some or none of the credit in advance to lower your monthly premium. If you use more than you qualify for based on your final yearly income, you pay the difference with your federal tax return; if you use less, you get it back (HealthCare.gov glossary: Premium tax credit). You reconcile it on Form 8962 using Form 1095-A (HealthCare.gov: How to use Form 1095-A).
Extra savings on Silver plans
If your income qualifies for cost-sharing reductions, you get lower deductibles, copayments and coinsurance, but only with a Silver plan (HealthCare.gov: Cost-sharing reductions).
Health sharing does not qualify
Tax credits apply only to marketplace health insurance. Health sharing programs are not insurance and never qualify. Not insurance
Frequently asked questions
Who qualifies for a premium tax credit in 2026?
People who buy a marketplace plan with household income between 100% and 400% of the federal poverty level qualify in all states (HealthCare.gov). For 2026 coverage that is $15,650 to $62,600 for one person and $32,150 to $128,600 for a household of four (2025 poverty guidelines, 48 states; higher in Alaska and Hawaii).
What is the income limit for health insurance subsidies in 2026?
400% of the federal poverty level: $62,600 for one person, $84,600 for two, $128,600 for four. The enhanced tax credits that had lifted that limit expired at the end of 2025, so people at or above 400% lost their subsidy entirely (KFF).
How is the premium tax credit figured?
From your household's estimated income and size and the premium of the second-lowest-cost Silver plan that applies to you (the benchmark), which may not be the plan you enroll in (HealthCare.gov). You can use the credit on a plan in any metal level.
What happens if my income changes?
You can take all, some or none of your credit in advance to lower your monthly premium. If you use more than you qualify for based on your final yearly income, you pay the difference when you file your federal tax return; if you use less, you get the difference back (HealthCare.gov). You settle it on Form 8962.
Can I get a tax credit for health sharing?
No. Premium tax credits apply only to marketplace health insurance plans. Health sharing programs are not insurance and never qualify.