Guide · 2026 coverage
ACA subsidy cliff 2026
For 2026 marketplace coverage, the premium tax credit stops above 400% of the federal poverty line: $84,600 of MAGI for a household of two, $62,600 for one. One dollar over the line and the whole credit is gone.
| Household size | Poverty guideline (2025) | 400% line (MAGI) | You pay on the line, a year |
|---|---|---|---|
| 1 | $15,650 | $62,600 | $6,234.96 |
| 2 | $21,150 | $84,600 | $8,426.16 |
| 3 | $26,650 | $106,600 | $10,617.36 |
| 4 | $32,150 | $128,600 | $12,808.56 |
| 5 | $37,650 | $150,600 | $14,999.76 |
| 6 | $43,150 | $172,600 | $17,190.96 |
| 7 | $48,650 | $194,600 | $19,382.16 |
| 8 | $54,150 | $216,600 | $21,573.36 |
“You pay” is the expected contribution toward the benchmark (second-lowest-cost silver) plan: 9.96% of MAGI at the line. The credit covers the rest of the benchmark premium. Figures are for the 48 states and DC.
ACA subsidy calculatorChoose 2026 as the coverage year, then enter your household size and MAGI: where you sit against the poverty line, your expected contribution, your credit and the room left under the line.
Open the calculatorWhy 400% is a cliff again in 2026
For tax years 2021 through 2025, Congress removed the 400% limit, so households above it could still get a credit. That expansion ended after 2025. For 2026 coverage, a household with MAGI above 400% of the poverty line gets no premium tax credit at all and pays the full premium.
Below the line, the credit is the benchmark premium minus your expected contribution. Between 300% and 400% of the poverty line that contribution is a flat 9.96% of MAGI. For a household of two at $84,600, that is $8,426.16 a year. At $84,601, the same household pays the whole premium.
Which poverty guidelines 2026 coverage uses
Coverage for a year uses the HHS poverty guidelines published before its open enrollment began, so 2026 coverage uses the 2025 guidelines: $15,650 for one person and $21,150 for two. The guidelines HHS published in 2026 set the line for 2027 coverage, so tables labelled “2026 FPL” can show different numbers from the ones above. The 2027 lines by household size use them.
What counts toward the line
The line is measured against modified adjusted gross income, added up for you and every family member who has to file a return: adjusted gross income plus tax-exempt interest and the untaxed part of Social Security. IRA withdrawals, Roth conversions and realized capital gains all raise it; deductible traditional IRA or HSA contributions lower it.
A Roth conversion made by December 31 counts in full, apart from any after-tax basis it carries. How much you can convert before the line and why December 31 is the date.
If your 2026 income ends up over the line
The marketplace pays the credit in advance from the income you estimated. Your 2026 tax return settles it on Form 8962 against the income you actually had. For tax years after 2025 there is no repayment cap: if your income ends above the line, you repay every dollar of advance credit you received for the year.
Calculations, not tax, legal or investment advice.
Sources
The lines and percentages above come from the same tables as the ACA subsidy calculator: 400% of the guideline for the household size, and the 2026 applicable percentage at the top band. Alaska and Hawaii have their own guidelines, which these tables do not carry.
Tables and sources
- HHS 2025 Poverty Guidelines (Federal Register 2025-01377); IRS Premium Tax Credit Q&A A72026 coverage uses the 2025 HHS poverty guidelines (48 states + DC); the enhanced credit lapsed after 2025, so eligibility stops above 400% FPL · www.federalregister.gov
- IRS Rev. Proc. 2025-25Rev. Proc. 2025-25 §3.01: Applicable Percentage Table for taxable years beginning in 2026 (§36B(b)(3)(A)(i), §1.36B-3(g)); within a band the percentage rises linearly from the initial to the final percentage · www.irs.gov
- IRS Questions and answers on the Premium Tax CreditQ1, Q7 and Q8, updated Feb. 19, 2026 · www.irs.gov
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