ACA Premium Tax Credit Calculator
Estimate your 2026 ACA marketplace premium tax credit using the real IRS Form 8962 method -- updated for the reinstated 400% FPL subsidy cliff and higher 2026 applicable percentages (2.1%-9.96%) now that the ARP/IRA enhancements have expired.
Estimate only — these are not official figures
Uses user-entered benchmark and enrollment premiums, assumes those monthly amounts remain constant for 12 months, derives monthly displays from an annual calculation, and simplifies Medicaid/minimum-essential-coverage eligibility. The 2026 applicable percentages and 400% ceiling are current enacted law, but the 2026 Form 8962 instructions were not yet final at review.
Do not rely on these amounts for budgeting or payment. For exact amounts, check the 26 U.S.C. § 36B (current through Aug. 6, 2026): https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section36B&num=0&edition=prelim; IRS Rev. Proc. 2025-25 (2026 applicable percentages): https://www.irs.gov/pub/irs-drop/rp-25-25.pdf; IRS Form 8962 instructions: https://www.irs.gov/instructions/i8962; HHS 2025 poverty guidelines (90 FR 5917): https://www.govinfo.gov/content/pkg/FR-2025-01-17/html/2025-01377.htm.
Enter Your Details
Adjust values to see instant results
Additional Details
Eligibility
Eligible for a premium tax credit (income is 206.38% of the 2025 Federal Poverty Line, within the 138%-400% qualifying range).
Estimated • Based on your inputs
Monthly Premium Tax Credit
$237.00
Annual Premium Tax Credit
$2,849.00
Your Net Monthly Premium (After Credit)
$313.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
This is a planning model based on 26 U.S.C. Section 36B, IRS Revenue Procedure 2025-25, and the HHS 2025 poverty guidelines. Current law reviewed August 7, 2026 restores the statutory 400%-FPL ceiling for 2026 because Section 36B's temporary 2021-2025 percentages and no-ceiling rule ended after 2025; no enacted extension was found. The model uses the 2025 poverty guideline in effect when 2026 open enrollment began, applies the official 2026 applicable-percentage table to the whole-number FPL percentage convention used by Form 8962, and computes an annual contribution. The annual credit is the lesser of annual enrollment premiums or the annual benchmark premium minus that contribution, never below zero, as Section 36B(b)(2) requires. Monthly outputs are annual results divided by 12. It assumes the entered benchmark and enrollment premiums apply unchanged for all 12 months and uses Medicaid-expansion status as a simplified low-income screening rule; Marketplace eligibility, other minimum essential coverage, household changes, and monthly premium changes can alter the official result.
How to Use This ACA Premium Tax Credit Calculator
- 1
Enter your household income
Input your Modified Adjusted Gross Income (MAGI). This drives the income portion of the ACA premium-tax-credit estimate. Eligibility also depends on factors this calculator does not test, including Medicaid/CHIP or affordable employer coverage.
- 2
Enter household size
Enter the tax household size used for the federal poverty guideline. The default premium is an age-40 individual benchmark, not a family premium, so replace it with your household's actual SLCSP before relying on the subsidy result.
- 3
Check the benchmark premium
Review the editable 2026 second-lowest-cost Silver benchmark for your state. Premiums vary by age, county, tobacco use, insurer, and covered family members; use your marketplace's exact SLCSP for a personal estimate.
- 4
Review premium and out-of-pocket costs
Compare monthly premiums after subsidies, annual deductibles, copays, and maximum out-of-pocket limits. Your state may have additional state-level subsidies.
Example Calculation
Let's estimate 2026 health-insurance costs for one 40-year-old in the United States.
The editable second-lowest-cost Silver benchmark is $625/month. With $50,000 household income, a $3,000 deductible, 20% coinsurance, and $5,000 of expected medical costs, the calculator applies the 2026 premium-tax-credit formula and out-of-pocket estimate.
Result: Estimated annual premium before credit: $7,500; estimated premium tax credit: $2,520; estimated total annual premium plus out-of-pocket cost: $8,380. This is planning math, not a quote — replace the benchmark with the exact SLCSP for your age, county, and household.
What Affects Your Results
Income Level
ACA subsidies are based on income relative to the Federal Poverty Level. A $1,000 income change near subsidy cliffs can mean hundreds in premium difference. Plan income carefully during open enrollment.
Age
The published default is for age 40. Federal law permits states to establish their own uniform age curves, and some prohibit age rating, so this calculator does not apply one nationwide age multiplier. Enter your marketplace's actual benchmark for your covered members.
Geographic Rating Area
Premiums vary significantly by region within each state. Rural areas with fewer hospitals and providers tend to have higher premiums than competitive urban markets.
Tobacco Use
ACA allows a 50% tobacco surcharge. This surcharge does NOT qualify for premium subsidies, making it extremely expensive. Tobacco cessation programs can eliminate this surcharge.
Tips & Best Practices
- Check marketplace plans if you lack qualifying affordable coverage. Access to affordable employer coverage can make you ineligible for premium tax credits even when a marketplace plan appears cheaper.
- Some states run their own health insurance exchanges with additional state-level subsidies beyond federal premium tax credits. Check your state exchange during open enrollment (Nov 1 - Jan 15).
- If your income is under 250% FPL, Silver plans with Cost-Sharing Reductions are almost always the best value. The CSR subsidies dramatically lower deductibles and copays beyond what the premium subsidy alone provides.
- HSA-eligible Bronze plans make sense if you're healthy and want to build tax-advantaged savings. Annual contribution limits: $4,400 (individual) / $8,750 (family) for 2026.
- Compare total annual cost (premiums + expected medical expenses), not just premiums. A $400/month plan with a $500 deductible often costs less annually than a $200/month plan with a $7,000 deductible if you use medical services regularly.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
Why do I have to enter my own benchmark (SLCSP) premium instead of the calculator looking it up for me?
The second-lowest-cost Silver plan premium is specific to your exact age, coverage family, rating area, and coverage year. For planning, use the same-year value from HealthCare.gov's plan preview or your state exchange. For tax reconciliation, use the applicable SLCSP amount from that coverage year's Form 1095-A or the IRS-linked HealthCare.gov tax tool; a prior-year amount is not a current quote.
Did ACA premium tax credits get smaller for 2026?
Yes, for most people. The American Rescue Plan (2021) and Inflation Reduction Act (extended through 2025) temporarily capped everyone's benchmark-plan contribution at 8.5% of income and removed the 400% FPL income cap entirely. Those enhancements expired at the end of 2025 and were not extended, so 2026 marketplace coverage reverts to the original ACA rules: contributions ranging from 2.1% to 9.96% of income (higher than the expired 0%-8.5% range), and no credit at all for households above 400% of the Federal Poverty Line.
What if my state hasn't expanded Medicaid and my income is below 100% of the poverty line?
You may fall into the "coverage gap" -- too high-income for your state's limited Medicaid program (which in non-expansion states often only covers parents/caretakers at very low income, and rarely childless adults at all) but too low-income to qualify for a marketplace premium tax credit, which requires income of at least 100% of FPL. Ten states have not adopted the ACA's Medicaid expansion: Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming -- but only nine of them actually have a coverage gap. Wisconsin is the exception: its BadgerCare Plus program covers adults up to 100% of FPL through its own Medicaid waiver, funded with state dollars, so there's no coverage gap there even though Wisconsin has not adopted the ACA expansion itself.
Can I get the premium tax credit if I buy a Bronze or Gold plan instead of Silver?
Yes. The premium tax credit amount is calculated using the second-lowest-cost Silver plan (SLCSP) as the benchmark, but under 26 U.S.C. Section 36B(b)(3)(A) you can apply that same dollar credit to a plan of any metal tier -- Bronze, Silver, Gold, or Platinum. Choosing a cheaper plan than the benchmark can mean a $0 net premium; choosing a pricier plan means you pay the difference out of pocket.
What happens if my actual income differs from what I estimated when I applied?
The advance premium tax credit paid to your insurer is based on estimated income. Form 8962 reconciles it against actual household income. If your allowed credit is larger, you may receive an additional credit; if advance payments were larger, you repay the excess. Under Pub. L. 119-21 Section 71305 and current 26 U.S.C. Section 36B(f), the repayment limitation was removed for tax years beginning after December 31, 2025, so 2026 excess advance payments are not capped.
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