As of 2026, ACA Marketplace subsidies are available to households earning between 100% and 400% of the federal poverty level (FPL). The exact dollar amount you save depends on your income, household size, and the cost of the benchmark Silver plan in your area. The enhanced subsidies from 2021 through 2025 have expired, the rules have reverted to the original ACA framework, and the subsidy cliff has returned at 400% FPL.
Quick Answer: In 2026, a single person earning up to $62,600 or a family of four earning up to $128,600 may qualify for ACA premium subsidies. The amount of your subsidy equals the benchmark plan premium minus your required contribution, which ranges from 2.10% to 9.96% of your income depending on where you fall in the FPL scale. Above 400% FPL, no subsidy is available.
Check your eligibility now at CoveredUSA, it takes 2 minutes: coveredusa.org/screener
What Changed for ACA Subsidies in 2026
The American Rescue Plan Act (2021) and the Inflation Reduction Act (2022) temporarily expanded premium tax credits so that anyone, even above 400% FPL, could qualify for subsidies. Those enhancements expired at the end of 2025. Congress did not renew them in time for the 2026 plan year.
Starting with 2026 coverage:
- Subsidies are capped at 400% FPL. Earn above that threshold and you receive no federal premium assistance.
- Required contribution percentages increased sharply across all income levels compared to 2025.
- People who received enhanced subsidies in 2025 will see their premiums rise significantly in 2026 unless their income dropped or they changed plans.
This is one of the biggest ACA policy shifts in years. Understanding how the 2026 numbers apply to your household is critical before you enroll or re-enroll.
2026 ACA Income Limits by Household Size
ACA subsidies use the prior year's FPL guidelines to calculate eligibility. For 2026 coverage, the thresholds are based on the 2025 federal poverty guidelines published by the Department of Health and Human Services at aspe.hhs.gov.
The table below shows the income ranges that qualify for premium tax credits in 2026. The lower bound (100% FPL) is the minimum income for subsidy eligibility. In Medicaid expansion states, eligibility starts at 138% FPL because households below that threshold qualify for Medicaid instead of marketplace subsidies.
2026 ACA Subsidy Income Limits by Household Size (48 Contiguous States)
| Household Size | 100% FPL (Minimum) | 138% FPL (Medicaid Line) | 200% FPL | 300% FPL | 400% FPL (Maximum) |
|---|
| 1 | $15,650 | $21,597 | $31,300 | $46,950 | $62,600 |
| 2 | $21,150 | $29,187 | $42,300 | $63,450 | $84,600 |
| 3 | $26,650 | $36,777 | $53,300 | $79,950 | $106,600 |
| 4 | $32,150 | $44,367 | $64,300 | $96,450 | $128,600 |
| 5 | $37,650 | $51,957 | $75,300 | $112,950 | $150,600 |
| 6 | $43,150 | $59,547 | $86,300 | $129,450 | $172,600 |
| 7 | $48,650 | $67,137 | $97,300 | $145,950 | $194,600 |
| 8 | $54,150 | $74,727 | $108,300 | $162,450 | $216,600 |
| Each additional person | +$5,500 | +$7,590 | +$11,000 | +$16,500 | +$22,000 |
Source: 2025 HHS Federal Poverty Guidelines via aspe.hhs.gov. Alaska and Hawaii use higher FPL figures. A single person in Alaska qualifies with income up to approximately $79,800 at 400% of the Alaska FPL.
For each additional person beyond 8, add $5,500 to the 100% FPL threshold and multiply by the FPL percentage. See the full reference table at coveredusa.org/aca-income-limits.
How the 2026 Subsidy Formula Works
The ACA subsidy does not give you a fixed dollar amount. Instead, the federal government calculates what portion of the benchmark plan premium you are required to pay out of pocket, and the subsidy covers the rest.
The benchmark plan is the second-lowest-cost Silver plan available in your county. Your 2026 subsidy amount equals:
Subsidy = Benchmark Premium minus Your Required Contribution
Your required contribution is a percentage of your annual income, set on a sliding scale based on where your income falls relative to the FPL.
2026 Required Contribution Percentages (IRS Rev. Proc. 2025-25)
| Household Income as % of FPL | Required Contribution (% of Income) | Notes |
|---|
| Under 133% FPL | 2.10% | Largest subsidy, lowest out-of-pocket |
| 133% to under 150% FPL | 4.19% | |
| 150% to under 200% FPL | 6.60% | |
| 200% to under 250% FPL | 8.44% | |
| 250% to under 300% FPL | 9.96% | |
| 300% to 400% FPL | 9.96% | Subsidy shrinks at upper incomes |
| Above 400% FPL | No subsidy | Full benchmark premium owed |
Source: IRS Revenue Procedure 2025-25, available at irs.gov.
These 2026 percentages are higher than 2025 enhanced-subsidy rates, where some households contributed as little as 0% to 2% of income. Budget accordingly if you are re-enrolling from 2025.
Example Calculations for 2026
Example 1: Single person earning $25,000 (about 160% FPL)
- Required contribution rate: 6.60%
- Annual required contribution: $25,000 x 6.60% = $1,650 per year ($137.50/month)
- If the 2026 benchmark plan costs $450/month, the subsidy covers $312.50/month
Example 2: Family of four earning $65,000 (about 202% FPL)
- Required contribution rate: 8.44%
- Annual required contribution: $65,000 x 8.44% = $5,486 per year ($457/month)
- If the 2026 benchmark plan costs $1,100/month for the family, the subsidy covers $643/month
Example 3: Single person earning $55,000 (about 351% FPL)
- Required contribution rate: 9.96%
- Annual required contribution: $55,000 x 9.96% = $5,478 per year ($456.50/month)
- If the 2026 benchmark plan costs $600/month, the subsidy covers $143.50/month
Benchmark plan premiums vary widely by county, so two households with identical incomes in different parts of the country can receive different subsidy amounts. Use the CoveredUSA screener to get an estimate that accounts for your specific location.
Cost-Sharing Reductions: Extra Savings Below 250% FPL
Premium subsidies reduce your monthly bill. If your 2026 income falls below 250% FPL, you may also qualify for cost-sharing reductions (CSRs), which lower your deductible, copays, and out-of-pocket maximum when you use care.
CSRs only apply to Silver plans. If you are in the 100% to 250% FPL range, you should evaluate Silver plans first even if Bronze looks cheaper after the premium subsidy.
2026 CSR Eligibility by Income Level
| Income Level | CSR Tier | Actuarial Value | What It Means |
|---|
| 100% to 150% FPL | Enhanced Silver (strongest) | 94% | Near-Medicaid cost-sharing |
| 150% to 200% FPL | Enhanced Silver | 87% | Low deductibles, low copays |
| 200% to 250% FPL | Enhanced Silver (moderate) | 73% | Meaningful reduction in cost-sharing |
| Above 250% FPL | Standard Silver | 70% | No CSR benefit |
For a household near 138% FPL, a CSR Silver plan can function almost like Medicaid, with near-zero deductibles and very low copays. This is one of the most overlooked benefits in the entire ACA. Source: healthcare.gov CSR guidance.
The 2026 Subsidy Cliff: What Happens at 400% FPL
In 2026, the "subsidy cliff" is back. If your household income lands at 401% FPL or above, you receive no premium subsidy at all.
For a single person, that cliff sits at $62,600. For a family of four, it is $128,600.
This creates a sharp discontinuity. A household at $62,500 might receive a subsidy worth $200 to $500 per month. A household at $62,700 gets nothing.
If your projected 2026 income is close to the 400% FPL boundary, consider:
- Contributing to a traditional IRA or 401(k) to reduce your modified adjusted gross income (MAGI)
- Funding a health savings account (HSA) if you are enrolled in an HSA-eligible high-deductible plan
- Managing timing of self-employment income or capital gains where possible
A tax professional can help you assess whether MAGI reduction strategies make sense given the dollar value of maintaining subsidy eligibility.
Subsidies vs. Medicaid: Which Program Covers You in 2026?
Many lower-income households qualify for Medicaid rather than ACA marketplace subsidies. Medicaid generally covers households below 138% FPL in the 40 states (plus D.C.) that expanded Medicaid under the ACA. You cannot receive Medicaid and ACA premium subsidies at the same time.
2026 Coverage by Income Level
| Income Level | Most Likely Program |
|---|
| Below 138% FPL (expansion states) | Medicaid |
| 100% to 138% FPL (non-expansion states) | ACA subsidy eligible |
| 138% to 400% FPL | ACA premium tax credit |
| 100% to 250% FPL (Silver plan) | ACA premium tax credit + CSR |
| Above 400% FPL | Full-price marketplace plan or employer coverage |
If you live in a non-Medicaid expansion state such as Texas, Florida, or Georgia and earn below 100% FPL, you may fall into a "coverage gap" where you do not qualify for Medicaid and do not qualify for ACA subsidies. The CoveredUSA screener at coveredusa.org/screener will identify which programs apply based on your state and income. For state-by-state Medicaid thresholds, see coveredusa.org/medicaid-income-limits.
How to Apply for ACA Subsidies in 2026
The standard ACA open enrollment period runs from November 1 through January 15 in most states. If you missed open enrollment, a Special Enrollment Period (SEP) applies after qualifying life events such as losing job-based coverage, getting married, having a baby, or moving.
Documents you will need:
- Social Security numbers for all household members applying for coverage
- Dates of birth for all household members
- Estimated 2026 annual income for your household (not last year's income, what you expect to earn)
- Employer name and contact information for any household members with jobs
- Policy numbers for any current health insurance you are leaving
- Information about employer coverage available to any household member
Application steps:
- Check your eligibility first at coveredusa.org/screener to confirm which programs you qualify for.
- Go to healthcare.gov or your state's own marketplace (Covered California, NY State of Health, Connect for Health Colorado, and others have their own portals).
- Create or log into your account. Returning users may find prior-year information pre-filled.
- Enter household income, size, and state residency. The system calculates your estimated premium tax credit.
- Compare available plans. Filter by metal tier and review monthly premiums after the subsidy is applied.
- Enroll in a plan. Coverage typically starts the first of the month following enrollment.
- Report income changes during the year to avoid a large reconciliation bill at tax time.
Common reasons applications are delayed or denied:
- Income reported is above 400% FPL (no subsidy available under 2026 rules)
- Affordable employer-sponsored coverage is available (affordability threshold in 2026 is 9.02% of household income for the employee-only premium)
- Citizenship or immigration status documents not verified within the deadline
- Medicaid or CHIP eligibility found, routing the applicant out of marketplace subsidy eligibility
- Household composition mismatch between the application and tax records
Special Enrollment Periods in 2026
You do not have to wait for open enrollment if you experience a qualifying life event. Common qualifying events include:
- Losing coverage through an employer or other source
- Getting married or divorced
- Having a baby or adopting a child
- Moving to a new coverage area
- Turning 26 and aging off a parent's plan
- Gaining citizenship or lawful immigration status
- Household income dropping below 150% FPL (triggers a permanent SEP under current rules)
You typically have 60 days from the qualifying event to enroll. Coverage starts the first of the month following enrollment in most cases.
Frequently Asked Questions
What are the ACA subsidy income limits for 2026?
For 2026 coverage, premium tax credits are available to households earning between 100% and 400% of the federal poverty level. For a single person, that means income between $15,650 and $62,600 per year. For a family of four, the range is $32,150 to $128,600. In states that expanded Medicaid, subsidy eligibility effectively starts at 138% FPL because households below that line qualify for Medicaid instead.
How much will my ACA subsidy be in 2026?
Your 2026 subsidy equals the cost of the benchmark Silver plan in your county minus the amount you are required to contribute. Your required contribution ranges from 2.10% of income at the lowest FPL levels to 9.96% between 300% and 400% FPL. A single person earning $30,000 per year would owe about 6.60% of income, roughly $165/month, regardless of the benchmark plan's full list price. The remaining cost is covered by the subsidy.
Did ACA subsidies decrease in 2026?
Yes, significantly. The enhanced premium tax credits from 2021 through 2025 allowed higher-income households to qualify and required lower contribution percentages across the board. Those enhancements expired at the end of 2025. In 2026, the pre-2021 rules apply: 400% FPL is the hard cutoff, required contribution percentages are higher at every income level, and there is no subsidy for incomes above the cliff.
What is the ACA subsidy cliff in 2026?
The subsidy cliff is the income level at which premium tax credits cut off entirely. In 2026, it is 400% FPL: $62,600 for a single person and $128,600 for a family of four. Earn $1 above these thresholds and you receive no premium assistance. This is a return to the original ACA structure after the temporary cliff removal under enhanced subsidies expired.
Can I get ACA subsidies if I am self-employed in 2026?
Yes. Self-employed individuals qualify for ACA subsidies on the same terms as anyone else. Your subsidy eligibility is based on your net self-employment income after business deductions as reported on Schedule SE. You can also deduct your health insurance premiums from your federal taxable income, which reduces the MAGI used to calculate your subsidy.
What is a cost-sharing reduction and do I qualify in 2026?
A cost-sharing reduction (CSR) lowers your deductible, copays, and out-of-pocket maximum when you receive care. CSRs are available to households earning between 100% and 250% FPL who enroll in a Silver plan through the marketplace. They are separate from the premium subsidy. If your income is in this range, a Silver plan with CSR will almost always cost less over the course of the year than a Bronze plan, even if the Bronze premium is lower after your subsidy.
What happens if my income changes during 2026?
If your income changes, update your marketplace application promptly. The premium tax credit is advanced (paid to your insurer monthly), so you receive it based on your income estimate at enrollment. At tax time, you reconcile actual income against the estimate using IRS Form 8962. Earning more than estimated means you may owe back some of the advanced credit. Earning less means you get an additional credit. Updating your application during the year reduces the risk of a large year-end surprise.
What if I earn less than 100% FPL in 2026?
In the 40 states (plus D.C.) that expanded Medicaid, adults below 138% FPL qualify for Medicaid. In the 10 states that have not expanded Medicaid, adults below 100% FPL face a coverage gap: too low for ACA subsidies, but not qualifying for Medicaid under their state's rules. The CoveredUSA screener will show you which programs exist in your state based on your income.
Where do I find the official 2026 ACA income limits?
The official income thresholds come from the 2025 federal poverty guidelines published by HHS at aspe.hhs.gov. The required contribution percentages for 2026 are set by IRS Revenue Procedure 2025-25. KFF provides a useful summary and calculator at kff.org.
Check your eligibility now at CoveredUSA, it takes 2 minutes: coveredusa.org/screener
For the complete ACA income limit reference table, visit coveredusa.org/aca-income-limits.
Last updated: May 2026. Income thresholds reflect 2025 federal poverty guidelines used for 2026 coverage year. Sources: IRS Revenue Procedure 2025-25, HHS ASPE, KFF, HealthCare.gov.
