Premium Tax Credit (PTC): 2026 ACA Subsidy Guide

Q: How do I claim the Premium Tax Credit?

Apply at [HealthCare.gov](https://www.healthcare.gov) or your state Marketplace. Take the credit in advance (APTC) to lower monthly premiums or claim it on your tax return using IRS Form 8962. Report income changes promptly to avoid owing money at tax time.

Annual Premium Tax Credit (PTC) Limits

Current annual limits
Household size	100% FPL (PTC floor)	138% FPL (Medicaid cap in expansion states)	400% FPL (PTC ceiling)
1	$15,650	$21,597	$62,600
2	$21,150	$29,187	$84,600
3	$26,650	$36,777	$106,600
4	$32,150	$44,367	$128,600
Each additional	+$5,500	+$7,590	+$22,000

2026 PTC chart by household size. Uses 2025 HHS Poverty Guidelines (aspe.hhs.gov), the standard for 2026 plan-year subsidy calculation. Source: IRS Form 8962 and CMS.

Source: https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines

Example: How It Works in Practice

Worked example for 2026: a single filer earning $30,000 in Texas (about 192% FPL) shopping the Marketplace.

Worked example
Item	Amount
Annual income	$30,000
FPL percentage	192%
Benchmark Silver premium	$450/mo
Expected contribution (~6.6% of income)	$165/mo
Monthly PTC (APTC)	$285/mo

Source: KFF 2026 subsidy calculator (kff.org). PTC varies by state, age, and benchmark plan. Contribution percentages reflect 2026 post-ARPA levels.

Frequently Asked Questions

Who qualifies for the 2026 Premium Tax Credit?

Households earning 100% to 400% of the Federal Poverty Level who are not eligible for affordable employer coverage, Medicare, or Medicaid. In 2026 the cliff returned: above 400% FPL ($62,600 single, $128,600 family of 4) you pay full Marketplace premium with no subsidy.

What changed in 2026 for the PTC?

The enhanced Premium Tax Credits from the American Rescue Plan Act and the Inflation Reduction Act expired January 1, 2026. Households above 400% FPL no longer qualify for any PTC, and households between 100% and 400% FPL pay a higher percentage of income toward premiums than in 2021 through 2025. See the 2026 ACA income limits for current contribution percentages.

Can I get both Medicaid and the Premium Tax Credit?

No. If you qualify for Medicaid through programs like Medi-Cal, MNsure routing, BadgerCare, or AHCCCS, the PTC is not available because Medicaid coverage is considered comprehensive. The PTC starts at the income threshold where Medicaid eligibility ends (138% FPL in expansion states, 100% FPL in non-expansion states).

How do I claim the Premium Tax Credit?

Apply at HealthCare.gov or your state Marketplace. Take the credit in advance (APTC) to lower monthly premiums or claim it on your tax return using IRS Form 8962. Report income changes promptly to avoid owing money at tax time.

What Is a Premium Tax Credit?