Your premium tax credit is the gap between the benchmark plan in your area and the share of income the law expects you to pay. It is tied to the benchmark — the second-lowest-cost Silver plan — not to the plan you actually choose, which is why a cheaper plan can end up at $0 a month and a richer one costs the difference.
This tool applies officially published figures to the numbers you enter. It is not an insurance quote, it is not an eligibility determination, and it does not predict what a carrier will charge you. Only HealthCare.gov, Medicare.gov, Social Security or the carrier can determine your eligibility and your actual price.
ACA Premium Tax Credit & Subsidy: how it works
The 400% cliff is back for 2026 and 2027
Between 2021 and 2025 enhanced subsidies capped premiums at 8.5% of income with no upper income limit. That schedule expired. For 2027 the applicable percentage table stops at 400% of the poverty line, and a household one dollar above it gets nothing. For a family of four that line is $132,000 — four times the 2026 poverty guideline of $33,000.
Why we ask for the benchmark premium
The credit is calculated from the second-lowest-cost Silver plan in your rating area, and that figure changes by county, by age and by household. We will not invent it — enter the figure HealthCare.gov shows you, or ask us and we will pull it for your county.
Common questionsCommon questions
What if my income changes during the year?
Report it to the Marketplace as soon as you know. The credit is reconciled on your tax return, so an income higher than you estimated means paying some of it back, and lower means a refund. Updating mid-year avoids a surprise in April.
Is this an official eligibility determination?
No. Only HealthCare.gov can determine your eligibility and your actual credit. This is an educational estimate built from the published IRS table and poverty guidelines.
Why does it use the 2026 poverty guidelines for 2027 coverage?
Because that is the rule. A Marketplace plan year is measured against the poverty guidelines in force when its open enrollment began — so 2027 coverage uses the guidelines published in January 2026. It is not a stale figure.