ACA Subsidy Calculator 2026
Estimate your potential Affordable Care Act (ACA) premium tax credits for 2026 based on current rules and estimated Federal Poverty Levels (FPL).
Your Estimated 2026 ACA Subsidy
Estimated Federal Poverty Level (FPL) for your household:
Your Income as % of FPL:
Estimated Monthly Premium Tax Credit (Subsidy):
Estimated Annual Premium Tax Credit (Subsidy):
Your Estimated Monthly Premium After Subsidy:
Your Estimated Annual Premium After Subsidy:
Disclaimer: This calculator provides an estimate for 2026 based on current ACA rules, including the extended provisions of the Inflation Reduction Act (IRA) which cap premium contributions at 8.5% of income for benchmark plans. Federal Poverty Level (FPL) figures are estimates based on 2024 FPLs and are subject to change for 2026. Actual subsidy amounts depend on official FPLs for 2026, your specific Modified Adjusted Gross Income (MAGI), the cost of the second-lowest cost Silver plan in your area, and any future legislative changes. This is for informational purposes only and not a guarantee of eligibility or subsidy amount.
function calculateAcaSubsidy() { var annualIncome = parseFloat(document.getElementById("annualIncome").value); var householdSize = parseInt(document.getElementById("householdSize").value); var monthlyBenchmarkPremium = parseFloat(document.getElementById("monthlyBenchmarkPremium").value); // Input validation if (isNaN(annualIncome) || annualIncome < 0) { alert("Please enter a valid annual household income."); return; } if (isNaN(householdSize) || householdSize < 1) { alert("Please enter a valid household size (at least 1)."); return; } if (isNaN(monthlyBenchmarkPremium) || monthlyBenchmarkPremium < 0) { alert("Please enter a valid monthly benchmark premium cost."); return; } // Estimated FPL for 2026 (using 2024 FPL as a base estimate) // 2024 FPL: $14,580 for 1 person, plus $5,140 for each additional person var baseFPL = 14580; var incrementPerPerson = 5140; var estimatedFPL = baseFPL + (householdSize – 1) * incrementPerPerson; // Calculate income as a percentage of FPL var incomeFPLPercentage = (annualIncome / estimatedFPL) * 100; // Determine target contribution rate based on FPL percentage (IRA extended rules) var targetContributionRate; // as a decimal if (incomeFPLPercentage < 150) { targetContributionRate = 0; } else if (incomeFPLPercentage < 200) { targetContributionRate = 0 + (0.02 / 50) * (incomeFPLPercentage – 150); } else if (incomeFPLPercentage < 250) { targetContributionRate = 0.02 + (0.02 / 50) * (incomeFPLPercentage – 200); } else if (incomeFPLPercentage < 300) { targetContributionRate = 0.04 + (0.02 / 50) * (incomeFPLPercentage – 250); } else if (incomeFPLPercentage = 400 targetContributionRate = 0.085; // Capped at 8.5% by IRA } // Calculate maximum monthly contribution towards benchmark plan var maxMonthlyContribution = (annualIncome * targetContributionRate) / 12; // Calculate monthly subsidy var monthlySubsidy = monthlyBenchmarkPremium – maxMonthlyContribution; if (monthlySubsidy < 0) { monthlySubsidy = 0; // Cannot receive a negative subsidy } // Calculate premiums after subsidy var monthlyPremiumAfterSubsidy = monthlyBenchmarkPremium – monthlySubsidy; var annualSubsidy = monthlySubsidy * 12; var annualPremiumAfterSubsidy = monthlyPremiumAfterSubsidy * 12; // Display results document.getElementById("displayEstimatedFPL").innerText = "$" + estimatedFPL.toLocaleString('en-US', { minimumFractionDigits: 0, maximumFractionDigits: 0 }); document.getElementById("displayIncomeFPLPercentage").innerText = incomeFPLPercentage.toFixed(1) + "%"; document.getElementById("displayMonthlySubsidy").innerText = "$" + monthlySubsidy.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById("displayAnnualSubsidy").innerText = "$" + annualSubsidy.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById("displayMonthlyPremiumAfterSubsidy").innerText = "$" + monthlyPremiumAfterSubsidy.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById("displayAnnualPremiumAfterSubsidy").innerText = "$" + annualPremiumAfterSubsidy.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById("acaResults").style.display = "block"; }Understanding the ACA Subsidy Calculator for 2026
The Affordable Care Act (ACA), often known as Obamacare, provides financial assistance to help eligible individuals and families afford health insurance coverage purchased through the Health Insurance Marketplace. These financial aids are called Premium Tax Credits (PTCs), commonly referred to as ACA subsidies. This calculator helps you estimate your potential subsidy for the year 2026.
What are ACA Subsidies?
ACA subsidies are government payments that reduce the amount you have to pay each month for health insurance premiums. They are designed to make health coverage more affordable, especially for those with lower to moderate incomes. The amount of your subsidy depends on several factors, including your household income, household size, and the cost of health plans in your area.
Eligibility for 2026 Subsidies
To be eligible for ACA subsidies in 2026, you generally must meet the following criteria:
- Income Level: Your household income (Modified Adjusted Gross Income – MAGI) must fall within a certain range relative to the Federal Poverty Level (FPL). Historically, this was between 100% and 400% of the FPL. However, the Inflation Reduction Act (IRA) of 2022 temporarily removed the "subsidy cliff" and capped premium contributions at 8.5% of household income for benchmark plans, regardless of FPL, through 2025. For this 2026 calculator, we assume these provisions will be extended or made permanent.
- No Access to Affordable Employer Coverage: You generally cannot be eligible for affordable health coverage through an employer (including your spouse's employer) that meets minimum value standards.
- No Eligibility for Government Programs: You cannot be eligible for Medicare, Medicaid, or CHIP.
- File Taxes Jointly (if married): If you are married, you must file your taxes jointly to qualify for subsidies.
How ACA Subsidies are Calculated
The calculation of your ACA subsidy is based on a few key components:
- Household Income vs. Federal Poverty Level (FPL): Your annual household income is compared to the FPL for your household size. The FPL is a set of income thresholds determined by the federal government that vary based on the number of people in your household. The lower your income relative to the FPL, the larger your potential subsidy.
- Benchmark Plan Cost: Subsidies are tied to the cost of the "second-lowest cost Silver plan" available in your specific rating area through the Marketplace. This plan is considered the benchmark. Your subsidy is calculated to ensure that you don't pay more than a certain percentage of your income for this benchmark plan.
- Income Contribution Percentage: Based on your income as a percentage of the FPL, there's a sliding scale that determines the maximum percentage of your income you're expected to contribute towards the benchmark plan's premium. For 2026, assuming the IRA provisions continue, this percentage is capped at 8.5% of your household income.
The formula essentially works like this:
Monthly Subsidy = Monthly Cost of Benchmark Plan - (Your Annual Household Income * Applicable Income Contribution Percentage) / 12
If the calculated subsidy is negative (meaning your income contribution would be higher than the benchmark plan cost), your subsidy is $0.
Impact of the Inflation Reduction Act (IRA) on 2026 Subsidies
The Inflation Reduction Act (IRA) of 2022 significantly enhanced ACA subsidies by eliminating the "subsidy cliff" and capping the percentage of income individuals and families pay for benchmark plans at 8.5%. This means even those with incomes above 400% of the FPL can qualify for subsidies if the benchmark plan premium would otherwise exceed 8.5% of their income. While these provisions were initially set to expire at the end of 2025, this calculator assumes their extension into 2026, reflecting the current policy landscape and ongoing discussions about making these enhancements permanent.
How to Use This Calculator
To get an estimate of your 2026 ACA subsidy, simply enter the following information:
- Estimated Annual Household Income (MAGI): This is your Modified Adjusted Gross Income. It's typically your Adjusted Gross Income (AGI) from your tax return with certain deductions added back.
- Household Size: The number of people in your tax household, including yourself, your spouse (if filing jointly), and any dependents.
- Estimated Monthly Cost of Second-Lowest Cost Silver Plan: This is a crucial input. You'll need to estimate this based on plans available in your area. You can often find this by looking at current Marketplace plans for your region or using a Marketplace plan comparison tool.
Click "Calculate Subsidy," and the tool will provide an estimate of your monthly and annual subsidy, as well as your estimated premium after the subsidy.
Important Considerations for 2026
- FPL Estimates: The Federal Poverty Level (FPL) figures used in this calculator are estimates based on 2024 FPLs. Official FPLs for 2026 will be released by the Department of Health and Human Services (HHS) in early 2026 and may differ.
- Policy Changes: While this calculator assumes the extension of IRA provisions, future legislative changes could impact subsidy eligibility and amounts for 2026.
- Actual Plan Costs: The actual cost of the second-lowest cost Silver plan varies significantly by location, age, and other factors. Your estimate will be more accurate if you have a good idea of this cost for your specific situation.
This calculator is a helpful tool for planning, but for precise figures and to enroll in coverage, you should visit Healthcare.gov or your state's health insurance marketplace during open enrollment.