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🇺🇸 United States only · 2026 plan year
The ACA Subsidy Cliff Is Back
Enhanced premium tax credits expired at the end of 2025. For 2026, subsidies cut off completely above 400% of the federal poverty line — no phase-out, no cap, just zero. See exactly where you stand.
Household size (for tax purposes)
MAGI = Modified Adjusted Gross Income. The benchmark is the second-lowest-cost Silver plan in your area — look yours up at healthcare.gov to use your exact figure instead of the default.
💊 HSA bonus angle
If your plan is HSA-eligible (a qualifying high-deductible plan — $1,700+ deductible self-only, $3,400+ family for 2026), you can also shelter up to $4,400 (self-only) or $8,750 (family) tax-free in 2026 — money that grows tax-free and comes out tax-free for medical costs. Contributing also lowers your MAGI, which can pull you back under the subsidy cliff if you are close to it.
// your position on the poverty-line scale
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of the federal poverty line for your household size
Premium tax credit
Your income
The cliff (400% FPL)
// the honest verdict
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Adjust your details above.
⚠️ General information only — not tax or financial advice. Uses 2025 federal poverty guidelines ($15,650 for one person, +$5,500 per additional household member) as applied to 2026 marketplace coverage, standard ACA timing. The applicable percentage schedule is approximated by interpolating between confirmed 2026 IRS anchor points (Rev. Proc. 2025-25) — for your exact figure, use HealthCare.gov's official subsidy calculator or your state exchange. Congress could still act to extend enhanced subsidies retroactively for 2026; this tool reflects the law as it stands absent further action. Nothing you enter is saved or sent anywhere.
How this calculator works
The premium tax credit (PTC) caps what you pay toward the benchmark (second-lowest-cost Silver) plan at a percentage of your income called the applicable percentage. The government covers the rest, up to the full benchmark premium. Formula: required contribution = income × applicable %, then subsidy = benchmark premium − required contribution (floored at $0).
From 2021 through 2025, temporary enhancements removed the income cap entirely and lowered the percentages at every tier. Those enhancements expired December 31, 2025. For 2026, the original ACA structure is back: the applicable percentage rises with income up to a flat 9.96% from 300–400% of the federal poverty line — and above 400%, the credit disappears entirely, regardless of how expensive your plan is. That sudden drop to zero is the "subsidy cliff."
This means a small raise near the 400% line can cost you far more in lost subsidy than the raise itself was worth — the chart shows exactly how sharp that drop is for your household size and benchmark premium.
What is the subsidy cliff?
The sudden, total loss of ACA premium tax credits once household income crosses 400% of the federal poverty line. Below the line, subsidies phase out gradually as income rises. The instant you cross it, the subsidy drops from some meaningful dollar amount straight to zero — no tapering, no partial credit.
Could Congress bring back the enhanced subsidies?
Possibly, and even retroactively for part of 2026 — this has been an active, unresolved debate in Congress. This calculator reflects the law as currently in effect. Check for updates before making a final coverage decision, especially if you are near the cliff.
Can I do anything if I am just over the cliff?
Your subsidy eligibility is based on MAGI (Modified Adjusted Gross Income). Pre-tax retirement contributions (traditional 401(k), traditional IRA) and HSA contributions if you are HSA-eligible all reduce MAGI. For households just above 400% FPL, maximizing these before year-end can legitimately bring income back under the line. This is a tax-planning question as much as an insurance one — a CPA can help model your specific numbers.