United States · 26 U.S.C. 36B
ACA subsidy cliff.
Enter household size and modified AGI to see your percent of poverty, expected contribution, estimated premium tax credit and how much income you can add before the cliff.
For 2026 coverage the premium tax credit stops completely above 400% of the federal poverty line. The enhanced credits that removed that cap expired after 2025, so one extra dollar of income can cost the whole credit.
Your inputs
Estimate
How the calculation works
1. Poverty line. Marketplace coverage in 2026 uses the 2025 HHS poverty guidelines: $15,650 for one person in the 48 states and D.C. plus $5,500 for each additional person ($19,550 plus $6,880 in Alaska; $17,990 plus $6,330 in Hawaii).
2. Percent of FPL = MAGI divided by that amount. The credit requires at least 100% and, for 2026, at most 400%.
3. Expected contribution. The IRS 2026 applicable percentage table sets what you are expected to pay for the benchmark plan as a share of income: 2.10% below 133% FPL; 3.14% to 4.19% from 133% to 150%; 4.19% to 6.60% from 150% to 200%; 6.60% to 8.44% from 200% to 250%; 8.44% to 9.96% from 250% to 300%; and 9.96% from 300% to 400%. Within a band this page interpolates in a straight line, so results can differ by a few dollars from the rounded figures on Form 8962.
4. Credit = benchmark premium minus expected contribution divided by 12, never below zero. Cliff room = 4 x poverty line minus MAGI.
Worked example
Two people in the 48 states: poverty line $21,150, cliff $84,600. MAGI $75,000 is 354.6% of FPL, so the expected contribution is 9.96%, or $7,470 a year ($622.50 a month). With a $1,200 benchmark the credit is $577.50 a month. Room before the cliff: $9,600.
Repayment, Medicaid and cost-sharing
Advance credits are reconciled on Form 8962. For tax years beginning after 2025 the old caps on repaying excess advance payments no longer apply, so a higher-than-expected income can mean repaying all of the excess. Under about 138% FPL, expansion-state residents may qualify for Medicaid instead; below 100% FPL in non-expansion states there is generally no credit and no Medicaid, the coverage gap. From 100% to 250% FPL, Silver plans carry cost-sharing reductions of roughly 94% (to 150%), 87% (150% to 200%) and 73% (200% to 250%) actuarial value.
Not modelled: employer-offered affordable coverage, immigration-based exceptions, mid-year life changes, state subsidies, age-based or family-glitch rules, and the exact Form 8962 table rounding.
Sources, opened October 2, 2026: IRS Rev. Proc. 2025-25 (2026 applicable percentage table), 26 U.S.C. 36B, HHS ASPE poverty guidelines and HealthCare.gov: federal poverty level. If Congress changes the 400% rule, this page will need updating.
Frequently asked questions
What is the ACA subsidy cliff in 2026?
It is the 400% of federal poverty line income limit. Above it the premium tax credit is zero. The enhanced credits that capped benchmark premiums at 8.5% of income, with no upper limit, expired after 2025.
What counts as MAGI for the ACA?
Adjusted gross income plus tax-exempt interest, untaxed foreign income and non-taxable Social Security benefits. Pre-tax 401(k), traditional IRA and HSA contributions lower it.
Do I have to pay back the subsidy if my income is higher than estimated?
Yes. Excess advance credits are repaid on your tax return, and starting with 2026 returns the former repayment caps no longer apply.
What is the benchmark premium?
The premium of the second-lowest-cost Silver plan available to you. It sets the credit no matter which plan you buy, and you can find it on HealthCare.gov or your state exchange.
What is the Medicaid gap?
In states that did not expand Medicaid, some adults earn too much for Medicaid but less than 100% of FPL, the minimum for the premium tax credit, so they get neither.
Why does 250% FPL matter?
Up to 250% FPL, Silver plans include cost-sharing reductions that lower deductibles and copays. Above 250% they do not.
Not tax or insurance advice
This is an educational estimate using published IRS and HHS tables, not an eligibility determination. Your Marketplace application and a tax professional decide your actual credit.