Estimate the 2026 ACA Premium Tax Credit under the rules in effect after the enhanced 2021–2025 subsidies expired.
Estimated annual subsidy (PTC)
—
% of FPL
—
Expected benchmark contribution
—
How the marketplace decides what you pay
The Premium Tax Credit is the federal subsidy that makes Affordable Care Act marketplace plans affordable. The mechanism is cleaner than most people expect. The government decides what share of your income you should reasonably pay toward health insurance, expressed as a percentage that slides up with income. It then looks at the second-lowest-cost Silver plan in your area, the benchmark, and pays the difference between that plan's premium and your expected contribution. This calculator reconstructs that arithmetic from your household size, your modified adjusted gross income, and the benchmark premium you pull from your state exchange.
This simplified annual estimate assumes every covered family member is eligible for a Premium Tax Credit for the full year and is not eligible for affordable employer coverage, Medicare, Medicaid, CHIP, or another disqualifying program. Enter your best estimate of 2026 household MAGI because advance credits are reconciled against actual income on Form 8962.
A single filer at $60,000
Take one person with a $60,000 MAGI and a benchmark Silver premium of $6,500 a year. The 2025 poverty guideline used for 2026 coverage in the 48 contiguous states and D.C. is $15,650, so $60,000 is about 383% of poverty. The final 2026 table sets the applicable percentage at 9.96% throughout the 300%–400% band. The expected benchmark contribution is therefore $5,976, leaving a benchmark-based credit of $524. If the enrolled plan also costs at least $524 for the year, the estimated PTC is $524.
| Step | Result |
|---|
The chart splits the annual premium for the plan entered above into the estimated credit and the net premium remaining after that credit.
Why the benchmark plan matters more than the plan you buy
A point that confuses many first-time shoppers: your subsidy is pegged to the second-lowest-cost Silver plan, not to whatever plan you actually enroll in. The credit is calculated against that benchmark, then you can apply that amount to another eligible Marketplace plan, subject to a cap at the plan's actual enrollment premium. Before that cap, the benchmark-based amount does not depend on the metal tier you choose. Buy a cheaper Bronze plan and the credit can cover most or all of its premium, leaving you with a low monthly bill but a higher deductible. Buy a richer Gold plan and you pay the difference above the benchmark out of pocket. The smart move is to decide how much medical care you expect to use, then pick the tier that minimizes your total yearly spending, premiums plus expected out-of-pocket costs, rather than chasing the lowest premium alone.
The income management trap nobody warns you about
Because the credit is reconciled against actual income, guessing too low is expensive. If you estimate $60,000, collect advance credits all year, and then earn $80,000, a one-person household in the contiguous states ends above 400% FPL and generally loses the entire 2026 credit. For tax years after 2025 there is no repayment cap, so the full excess advance credit generally must be repaid. The flip side is an opportunity: keeping MAGI within the eligibility range can meaningfully raise your credit, and tools like deductible retirement contributions or an HSA can pull MAGI down. For early retirees living off taxable savings, deliberately managing the income you realize each year is one of the highest-value moves available.
Questions about the credit
What changed for 2026?
The American Rescue Plan and Inflation Reduction Act removed the old 400 percent income cliff and capped contributions at 8.5 percent of MAGI only through 2025. Those enhanced rules expired. For 2026, the general 100%–400% FPL eligibility range and the indexed applicable-percentage table apply again. This calculator returns no credit below 100% or above 400% FPL. Narrow exceptions can apply below 100% FPL, including for certain lawfully present immigrants, so use the Marketplace determination if that describes your household.
What counts in MAGI for the ACA?
For the Premium Tax Credit, MAGI is your adjusted gross income plus any tax-exempt interest, the excluded portion of foreign earned income, and non-taxable Social Security benefits. It is not the same MAGI used for IRA phase-outs, so do not reuse a figure from another calculator without checking the components.
Sources: IRS Rev. Proc. 2025-25, 2026 Applicable Percentage Table; IRS Premium Tax Credit questions and answers; and the 2025 HHS Poverty Guidelines.