2026 ACA Subsidy Calculator
Your 2026 Estimate
What Is an ACA Subsidy?
An ACA subsidy is also called a premium tax credit. It lowers the monthly cost of health insurance plans sold on the marketplace.
Instead of sending you cash, the government pays part of your insurance premium directly to the insurer. You pay the rest.
The size of your subsidy depends on four things:
- Your household income
- Your household size
- Your ages
- The cost of a benchmark Silver plan in your area
An ACA subsidy calculator brings all of this together in one place.
Why an ACA Subsidy Calculator Matters in 2026
For 2026 coverage, one big rule is back:
The subsidy cliff.
If your household income is over 400% of the Federal Poverty Level (FPL), you get no subsidy at all. Even $1 over the limit can mean paying full price.
This makes accurate estimates more important than ever. A calculator helps you see where you land before you enroll.
Key Inputs Used by an ACA Subsidy Calculator
Let’s break down the exact inputs used in the calculator you shared and why each one matters.
1. Projected Household Income
This is your Modified Adjusted Gross Income (MAGI) for the year.
It includes:
- Wages
- Self-employment income
- Unemployment
- Social Security (taxable portion)
- Most other taxable income
It does not mean take-home pay. The calculator assumes income before taxes.
Why it matters:
Your income determines your percentage of the Federal Poverty Level, which controls subsidy eligibility.
2. Household Size
Household size means your tax household, not just who needs insurance.
It usually includes:
- You
- Your spouse
- Dependents you claim on your tax return
Why it matters:
The Federal Poverty Level rises with each additional person. A larger household can qualify for subsidies at a higher dollar income.
3. Ages of People Needing Coverage
ACA premiums are age-rated. Older adults cost more to insure than younger ones.
The calculator uses:
- A standard ACA age curve
- A base cost tied to a 21-year-old adult
- Higher factors for older ages and lower factors for children
Why it matters:
Two households with the same income can get very different subsidies if their ages are different.
4. Benchmark Silver Plan Cost (Optional)
The benchmark plan is the second-lowest-cost Silver plan in your area.
If you do not enter this:
- The calculator estimates it using national averages and age factors
If you do enter it:
- The results are more precise
Why it matters:
Your subsidy equals the benchmark premium minus your expected contribution.
How the Calculator Determines Eligibility
The calculator follows a clear step-by-step process.
Step 1: Calculate Federal Poverty Level (FPL)
It starts with a base amount for one person and adds an amount for each additional household member.
Your income is divided by this number to get your FPL percentage.
Example:
- Income: $60,000
- FPL for household size: $40,000
- Result: 150% of FPL
Step 2: Check Subsidy Status
Based on your FPL percentage, one of three things happens:
- Under 100% FPL
Likely eligible for Medicaid or CHIP, not marketplace subsidies - 100% to 400% FPL
Eligible for ACA subsidies - Over 400% FPL
No subsidy due to the subsidy cliff
The calculator clearly labels this in the results.
Step 3: Apply the Expected Contribution Percentage
If you are subsidy-eligible, the calculator assigns an expected contribution rate.
This is the maximum share of income you are expected to pay for a benchmark Silver plan.
Lower income means a lower percentage. Higher income means a higher percentage.
Step 4: Calculate Monthly Contribution
Your expected contribution is:
Annual income × contribution percentage ÷ 12
This becomes your monthly cap for the benchmark plan.
Step 5: Estimate the Benchmark Premium
If you did not enter a plan cost, the calculator:
- Uses a conservative national estimate
- Adjusts it by age using ACA rules
This keeps results realistic even without zip-code data.
Step 6: Calculate the Tax Credit
The tax credit equals:
Benchmark premium − expected monthly contribution
If the result is negative, the subsidy is set to zero.
If you are over 400% FPL, the subsidy is always zero.
Understanding the Results
The results section shows three key outputs.
Federal Poverty Level Percentage
This confirms where your income falls relative to the cutoff points.
It is one of the most important numbers to watch, especially near 400%.
Expected Monthly Contribution
This is the maximum you are expected to pay for a benchmark Silver plan.
If you choose a cheaper plan, you may pay less.
If you choose a more expensive plan, you pay the difference.
Estimated Monthly Tax Credit
This shows how much of the premium is covered by the subsidy.
It is applied automatically when you enroll, unless you choose to claim it later on your tax return.
Important Limitations to Know
An ACA subsidy calculator is a planning tool, not a legal determination.
Keep these points in mind:
- Actual premiums vary by zip code
- Medicaid rules differ by state
- Income changes during the year can affect repayment
- Final subsidy amounts are settled on your tax return
The calculator gives you a strong estimate, not a guarantee.
Who Should Use an ACA Subsidy Calculator
This tool is especially useful if you are:
- Self-employed
- Retiring before Medicare
- Leaving employer coverage
- Working multiple jobs
- Near the 400% FPL cutoff
- Planning income strategies for next year
Even small income changes can have big effects in 2026.