Premium Tax Credit Repayment Calculator
Calculate how much excess Advance Premium Tax Credit you must repay using the real IRS Form 8962 Part III method -- and see why the One Big Beautiful Bill Act eliminates the repayment limitation cap entirely starting with 2026 tax returns.
Estimate only — these are not official figures
Assumes Form 1095-A Columns A and B are constant for all 12 months, derives an annual result from user-entered monthly premiums, and projects a 2026 reconciliation before final 2026 Form 8962 instructions are available. The 2026 no-cap rule itself is enacted current law.
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; IRS Rev. Proc. 2025-32 § 2.04: https://www.irs.gov/pub/irs-drop/rp-25-32.pdf; Pub. L. 119-21 § 71305: https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm.
Enter Your Details
Adjust values to see instant results
Additional Details
Reconciliation Outcome
You received more in advance payments than you actually qualified for -- you owe a repayment when you file.
Estimated • Based on your inputs
Repayment Required (Selected Tax Year)
$1,950.00
Extra Repayment Caused by the OBBBA Repeal
$676.00
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 planning model follows the annual-totals path in IRS Form 8962 for a household whose enrollment premium and benchmark premium are unchanged for all 12 months. It uses the 2024 HHS poverty guideline and the temporary 2025 applicable-percentage table for tax year 2025, or the 2025 guideline and Revenue Procedure 2025-25's 2026 table for tax year 2026. The allowed annual credit is the lesser of annual enrollment premiums or annual benchmark premiums minus the rounded annual contribution, never below zero. APTC above that amount is excess. The 2025 result applies Form 8962 Table 5's repayment limit; for 2026, Pub. L. 119-21 Section 71305 removed 26 U.S.C. Section 36B(f)(2)(B), so current law requires the full excess to be repaid. Revenue Procedure 2025-32 Section 2.04 confirms the removal. The 2026 return will be filed in 2027 and final 2026 Form 8962 instructions were not available at this review, so this is not a tax-return preparation result; monthly changes, allocations, eligibility exceptions, or other coverage require the official form and instructions.
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
Is the premium tax credit repayment limitation really being eliminated?
Yes. Section 71305 of the One Big Beautiful Bill Act (Pub. L. 119-21) removes 26 U.S.C. Section 36B(f)(2)(B) -- the subsection that capped how much excess advance premium tax credit a household had to repay -- effective for taxable years beginning after December 31, 2025. The IRS confirmed this directly in Revenue Procedure 2025-32 (Section 2.04), noting the inflation adjustment for that subsection has been removed "accordingly." Tax year 2025 (returns filed in 2026) is the last year the old capped Table 5 amounts apply; tax year 2026 (returns filed in 2027) is the first year with no cap at all.
How much was the repayment limitation before it was repealed?
For tax year 2025, Table 5 of the Form 8962 instructions caps the repayment at: under 200% of the Federal Poverty Line, $375 (single) or $750 (all other filing statuses); 200%-under 300% FPL, $975 or $1,950; 300%-under 400% FPL, $1,625 or $3,250. At 400% FPL or above, there was already no cap -- that part hasn't changed. The change is that starting with 2026 returns, even households well under 400% FPL will owe back their full excess advance payment with no limitation at all.
Why does this matter if my income estimate turns out to be accurate?
If your actual final income matches what you estimated to the Marketplace, your allowed credit should closely match what you received in advance, and there's little or nothing to repay either way. The repayment limitation only mattered as a safety net for households whose income came in higher than expected -- a raise, a bonus, extra freelance income, or a spouse returning to work. Starting in 2026, that safety net is gone, so it becomes more important to update your income estimate with the Marketplace mid-year if your circumstances change, rather than finding out at tax time.
Does this repeal affect the credit amount itself, or just the repayment cap?
Just the repayment cap. The size of the credit you can actually claim (governed by 26 U.S.C. Section 36B(b), and separately affected by the 2026 applicable-percentage table and the reinstated 400% FPL cliff -- see this site's ACA Premium Tax Credit calculator) is a completely separate calculation from the repayment limitation in Section 36B(f)(2)(B) repealed here. It's possible for a household to see both changes at once: a smaller credit going forward, AND a larger potential clawback if their income estimate turns out to be too low.
What if I received less APTC than I actually qualify for?
Then you have no repayment at all -- instead, you're due an additional credit, which either increases your refund or reduces your balance due. The repayment limitation (and its OBBBA repeal) only applies to EXCESS advance payments; there has never been any cap on additional credits owed to you, and OBBBA does not change that.
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