400%Poverty-level cap for premium tax credits
$62,600400% of poverty for a single person (2026 cover)
10.22%Maximum share of income for the benchmark plan, 2027
250%Poverty-level limit for cost-sharing reductions
Key takeaway: Premium tax credits cap what you pay for the benchmark Silver plan at a share of your income, from 2.15% to 10.22% for 2027. Since the enhanced subsidies expired after 2025, people earning more than 400% of the poverty level get no help at all, and everyone else gets less than in 2021–2025. Cost-sharing reductions on Silver plans add big savings for incomes up to 250% of poverty.
How we put this guide together: Subsidy rules come from healthinsurance.org, IRS guidance as summarized by our sources, KFF analyses, BenefitChamps (September 2026) and Healthcare Insider. This is general information, not tax advice. Rules and figures were checked in October 2026. Health insurance rules change often, so confirm details at HealthCare.gov or your state marketplace. See our advertiser disclosure.

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How premium tax credits work

The subsidy is based on the second-lowest-cost Silver plan in your area (the “benchmark”). You’re expected to pay a set percentage of your household income toward that plan; the tax credit covers the rest. You can use the credit on any metal tier: on a cheaper Bronze plan, it may cover most or all of the premium.

Household income (share of poverty level)What you pay for the benchmark plan, 2027
Lowest income band2.15% of income
300%–400%10.22% of income
Above 400%No subsidy

Sources: healthinsurance.org; IRS applicable percentage table for 2027 as reported by our sources.

Example: a single person earning $50,000 for 2027 falls in the 300%–400% band and is expected to pay about 10.22% of income, or $5,110 a year (about $426 a month), for the benchmark Silver plan. If that plan costs $8,000, the tax credit is about $2,890.

The subsidy cliff is back

From 2021 to 2025, enhanced subsidies removed the upper income limit and lowered everyone’s contributions. They expired at the end of 2025 after Congress didn’t extend them; the House passed a three-year extension in January 2026, but it wasn’t enacted. Now there’s again no credit above 400% of the poverty level: $62,600 for a single person or $128,600 for a family of four for 2026 cover. Earning just over the line can mean losing thousands of dollars in help.

KFF estimated that if the enhanced credits expired, average premium payments for subsidized enrollees would more than double, from $888 to $1,904 a year.

Cost-sharing reductions

If your income is up to 250% of the poverty level and you choose a Silver plan, you get extra savings on deductibles, copays and the out-of-pocket maximum. The plan’s actuarial value rises from about 70% to:

  • 94% for incomes 100%–150% of poverty
  • 87% for 150%–200%
  • 73% for 200%–250%

At the lower bands, an enhanced Silver plan can be better than Gold at a fraction of the price. These reductions are available only on Silver plans bought through the Marketplace.

Reconciling at tax time

Most people take the credit in advance to lower monthly premiums, based on their estimated income. When you file taxes, the credit is reconciled against your actual income on Form 8962. Starting with tax year 2026, the caps that used to limit how much excess credit you had to repay are gone, so an unexpected raise, bonus or new job can create a large tax bill. Report income changes to the Marketplace promptly.

Who isn’t eligible

  • People with access to affordable employer cover that meets minimum value
  • People eligible for Medicaid, CHIP or premium-free Medicare
  • Married couples who file separately (with limited exceptions)
  • From 2027, certain lawfully present immigrant groups no longer qualify
  • Households above 400% of the poverty level

Lower-income adults in states that expanded Medicaid may qualify for Medicaid instead; see Medicaid vs. Marketplace.

Tips to make the most of subsidies

  1. Estimate income carefully, including self-employment profit, and update it during the year.
  2. Contributions to a traditional IRA or HSA can lower your modified adjusted gross income and may keep you under the 400% line.
  3. Compare Bronze and Silver plans after subsidies; see our Marketplace guide.
  4. Check prices again at open enrollment, since the benchmark plan can change each year.

Frequently asked questions

Did the enhanced ACA subsidies expire?

Yes. They expired at the end of 2025 and had not been extended as of September 2026, so original subsidy rules apply for 2027.

What is the income limit for ACA subsidies?

400% of the federal poverty level: $62,600 for a single person and $128,600 for a family of four for 2026 coverage.

How much will I pay for health insurance with a subsidy?

For the benchmark Silver plan, between 2.15% and 10.22% of household income in 2027, depending on income.

What are cost-sharing reductions?

Extra savings on deductibles and copays for people up to 250% of the poverty level who choose a Silver Marketplace plan.

Will I have to pay back my subsidy?

If your actual income is higher than estimated, you may repay some or all of the excess at tax time. From tax year 2026, there’s no cap on that repayment.

Sources

Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.