ACA Premium Tax Credit Calculator
Estimate your Affordable Care Act health insurance subsidy for 2025 or 2026. The enhanced subsidies expired after 2025 — for 2026 the 400% FPL cliff is back, so this tool applies the reverted IRS Rev. Proc. 2025-25 schedule to 2026.
Modified Adjusted Gross Income for all tax household members.
Find your SLCSP premium on Healthcare.gov or Form 1095-A.
Enter your chosen plan's full premium to see your net cost after subsidy. Leave at 0 to use the SLCSP as benchmark.
Monthly Premium Tax Credit
$442$5,308 per year
Your Expected Contribution
$157.703.78% of income ($1,892/yr)
Net Monthly Premium
$158After subsidy applied to SLCSP benchmark
| Federal Poverty Level (2025) | $20,440 for 2 people |
| Your Income as % of FPL | 244.6% |
| Applicable Percentage | 3.78% |
| Expected Annual Contribution | $1,892 |
| Annual SLCSP Premium | $7,200 |
| Annual Premium Tax Credit | $5,308 |
PTC = Annual SLCSP Premium − Expected Contribution (cannot be negative)
Slightly reduced cost sharing. Must enroll in a Silver plan to receive CSR.
Your Silver plan covers approximately 73% of average healthcare costs (vs. 70% for standard Silver).
| Income Range | CSR Tier | Plan Covers |
|---|---|---|
| 100% – 150% FPL | Silver 94 | 94% |
| 150% – 200% FPL | Silver 87 | 87% |
| 200% – 250% FPL | Silver 73 | 73% |
| Above 250% FPL | None | 70% |
The Premium Tax Credit (PTC) is a refundable tax credit that helps eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace (Healthcare.gov). It was established by the Affordable Care Act and enhanced by the American Rescue Plan Act and Inflation Reduction Act.
Eligibility (2025):
- Household income above 100% FPL (or 138% FPL in Medicaid expansion states)
- No upper income limit under enhanced rules — subsidy phases out gradually
- Not eligible for other coverage (employer, Medicare, Medicaid, CHIP)
- Must file joint return if married (MFS generally ineligible)
How it's calculated:
- Your income is compared to the Federal Poverty Level for your household size
- An "applicable percentage" determines your expected premium contribution
- PTC = Second Lowest Cost Silver Plan premium − your expected contribution
- You can apply the credit in advance (APTC) to lower monthly premiums, or claim it when filing
Enhanced subsidies (IRA, through 2025):
- Below 150% FPL: $0 premium for the benchmark Silver plan
- 150-400% FPL: Graduated contribution from 0% to 8.5% of income
- Above 400% FPL: Capped at 8.5% of income (no subsidy cliff)
The SLCSP (Second Lowest Cost Silver Plan) is the benchmark plan used to calculate your credit. You can enroll in any metal tier (Bronze, Silver, Gold, Platinum) and apply your credit. Enrolling in a Silver plan at lower incomes also unlocks Cost Sharing Reductions.
400% FPL cliff returns in 2026
The enhanced IRA rules (no cliff, 8.5% cap) applied through 2025. For 2026 the cliff is back: no premium tax credit at all once income exceeds 400% FPL.
$0 premiums (2025 only)
In 2025, households below 150% FPL paid $0 for the benchmark Silver plan. In 2026 the lowest band contributes about 2.1% of income, so $0 benchmark premiums largely go away.
Silver Plan = Extra Savings
Enrolling in a Silver plan at incomes below 250% FPL unlocks Cost Sharing Reductions — lower deductibles, copays, and out-of-pocket maximums.
Refundable Credit
The PTC is fully refundable — you receive the credit even if you owe no federal income tax. It can be taken in advance or claimed when filing.
Expected contribution: 2025 vs 2026
The percentage of income you're expected to put toward the benchmark Silver plan, by income as a share of the Federal Poverty Level. 2026 reverts to the higher IRS Rev. Proc. 2025-25 schedule and reinstates the cliff. Figures are computed from the same engine as the calculator.
| Household income | 2025 (enhanced) | 2026 (reverted) |
|---|---|---|
| 150% FPL | 0.00% | 4.19% |
| 200% FPL | 2.00% | 6.60% |
| 250% FPL | 4.00% | 8.44% |
| 300% FPL | 6.00% | 9.96% |
| 400% FPL | 8.50% | 9.96% |
| Above 400% FPL | 8.50% | No subsidy (cliff) |
A future extension of the enhanced subsidies (the 'CARE Act' framework) is under discussion but is not enacted as of mid-2026, so the calculator defaults 2026 to the reverted rules.
Worked example — the 2026 cliff
A 60-year-old couple (household of 2) earns $85,000 — about 402% of the 2025 FPL ($21,150 × 4 = $84,600 is 400%).
2025: under the enhanced rules they paid no more than 8.5% of income ($7,225) for the benchmark Silver plan; if that plan cost $1,800/month ($21,600/yr), they received roughly a $14,375 annual subsidy.
2026: at just over 400% FPL they fall off the cliff — $0 subsidy, paying the full $21,600 themselves. Dropping income just under 400% FPL (e.g., via an HSA or pre-tax retirement contribution) restores a large credit — the classic "subsidy cliff" planning move.
Frequently asked questions
What is the ACA Premium Tax Credit?
The Premium Tax Credit (PTC) is a refundable tax credit that helps eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace (Healthcare.gov). The credit is based on your household income relative to the Federal Poverty Level and can be applied in advance to lower your monthly premiums or claimed when you file your tax return.
Who is eligible for ACA subsidies in 2025?
For 2025, most people who purchase insurance through the Marketplace and have household income above the Federal Poverty Level are eligible. Under the enhanced subsidies from the Inflation Reduction Act, there is no upper income cliff — people above 400% FPL can still receive credits, capped at paying 8.5% of income for the benchmark Silver plan. You must not be eligible for other qualifying coverage such as employer insurance, Medicare, or Medicaid.
What is the Second Lowest Cost Silver Plan (SLCSP)?
The SLCSP is the benchmark plan used to calculate your Premium Tax Credit. It's the second-cheapest Silver-tier health plan available in your area for your household. Your credit is calculated as the difference between the SLCSP premium and your expected contribution (a percentage of your income). You can find your SLCSP on Healthcare.gov or on Form 1095-A if you already have Marketplace coverage.
What are Cost Sharing Reductions (CSR)?
Cost Sharing Reductions lower your deductibles, copays, and out-of-pocket maximums when you enroll in a Silver plan through the Marketplace. They are available to households with income between 100% and 250% of the Federal Poverty Level. At 100-150% FPL, you get a Silver 94 plan (covers 94% of costs vs. standard 70%). CSR is only available with Silver plans — if you choose Bronze or Gold, you still get the PTC but not the reduced cost sharing.
Will ACA subsidies change in 2026?
The enhanced ACA subsidies from the Inflation Reduction Act expired after the 2025 plan year and were not extended (the July 2025 OBBBA did not address them). For 2026 the rules have reverted to pre-2021 levels: a hard subsidy cliff at 400% FPL (no premium tax credit above it) and higher expected-contribution percentages — up to about 9.96% of income, per IRS Rev. Proc. 2025-25. A two-year extension (the 'CARE Act' framework) is under discussion but is not enacted as of mid-2026, so plan for the reverted rules.
Sources
Related insights
Use these guides for rule explanations, planning context, and follow-up questions beyond the calculator result.