ACA subsidy cliff is back for 2026: $62,600 for one, $84,600 for two
The enhanced premium tax credit expired after 2025. For 2026 coverage the credit ends at 400% of the poverty line, and one dollar over the line costs the whole credit.
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The premium tax credit that lowers the cost of a Marketplace health plan has an income ceiling again. The enhanced credit that removed the ceiling for 2021 through 2025 expired on December 31, 2025, and as of October 10, 2026 no extension has been enacted, so for 2026 coverage the credit ends at 400% of the federal poverty line: $62,600 of household income for one person, $84,600 for two, $128,600 for four, in the 48 states and DC. The cut is not gradual. A 60-year-old couple whose 2026 income lands at $84,601 instead of $84,600 loses the entire credit, which at a $2,000 a month benchmark premium is $15,574 for the year. If you are enrolling on November 1, that is 2027 coverage, with cliffs of $63,840 and $86,560; see the 2027 section below. The ACA subsidy calculator shows the credit and the room left at any income.
The numbers
Every credit, contribution and cliff figure below comes from MoneyVibe's premium tax credit engine, which applies the credit formula in section 36B, the 2026 applicable percentage table from Rev. Proc. 2025-25 and the 2025 HHS poverty guidelines. The cliff depends only on household size and where you live. The benchmark premiums are inputs for the worked examples, not quotes or averages; your own benchmark is the second-lowest-cost Silver plan for your age and county.
| Tax household (48 states and DC), 2026 coverage | Poverty line (2025 guideline) | 138% of the line | Subsidy cliff (400%) |
|---|---|---|---|
| 1 person | $15,650 | $21,597 | $62,600 |
| 2 people | $21,150 | $29,187 | $84,600 |
| 3 people | $26,650 | $36,777 | $106,600 |
| 4 people | $32,150 | $44,367 | $128,600 |
Alaska and Hawaii have their own guidelines: the one-person cliff is $78,200 in Alaska and $71,960 in Hawaii, and $105,720 and $97,280 for two.
Between the poverty line and the cliff the credit shrinks as income rises, because the share of income you are expected to pay toward the benchmark plan rises too. For a two-person household with a $2,000 a month ($24,000 a year) benchmark premium, 2026 coverage:
| Household income (MAGI) | Of the poverty line | Share of income you pay | You pay a year | Credit a year |
|---|---|---|---|---|
| $21,150 | 100% | 2.10% | $444 | $23,556 |
| $29,187 | 138% | 3.45% | $1,007 | $22,993 |
| $31,725 | 150% | 4.19% | $1,329 | $22,671 |
| $42,300 | 200% | 6.60% | $2,792 | $21,208 |
| $52,875 | 250% | 8.44% | $4,463 | $19,537 |
| $63,450 | 300% | 9.96% | $6,320 | $17,680 |
| $74,025 | 350% | 9.96% | $7,373 | $16,627 |
| $84,600 | 400% | 9.96% | $8,426 | $15,574 |
| $84,601 | over 400% | none | $24,000 | $0 |
Moving this couple's income from $74,600 to $84,600 costs $996 of credit, about 10 cents per dollar, because the applicable percentage is flat at 9.96% from 300% to 400%. Moving from $84,600 to $94,600 costs $15,574, and the first dollar of that step costs all of it. The size of the step depends on the benchmark premium, which rises with age:
| Benchmark premium for the couple (an input) | Expected contribution at $84,600 | Credit lost by the first dollar over |
|---|---|---|
| $1,600 a month ($19,200 a year) | $8,426 | $10,774 |
| $2,000 a month ($24,000 a year) | $8,426 | $15,574 |
| $2,400 a month ($28,800 a year) | $8,426 | $20,374 |
The expected contribution at the cliff is 9.96% of $84,600 in every row, so a higher premium means a larger loss. The same arithmetic for one person at $62,600 with a $1,000 a month benchmark gives a $5,765 credit, and for a family of four at $128,600 with a $2,000 a month benchmark, $11,191.
Why it works this way
The formula. Section 36B(b)(2) sets the monthly credit as the lesser of the premium of the plan you enroll in and the excess of the benchmark premium (the second-lowest-cost Silver plan for your household in your rating area) over one twelfth of the applicable percentage times household income. Section 36B(b)(3)(A) says the applicable percentage rises "on a sliding scale in a linear manner" within each income tier. For taxable years beginning in 2026, Rev. Proc. 2025-25 section 3.01 sets them at 2.10% below 133% of the poverty line, 3.14% to 4.19% from 133% to 150%, 4.19% to 6.60% to 200%, 6.60% to 8.44% to 250%, 8.44% to 9.96% to 300%, and a flat 9.96% from 300% to 400%.
The ceiling. Section 36B(c)(1)(A) defines an applicable taxpayer as one whose household income "equals or exceeds 100 percent but does not exceed 400 percent" of the poverty line for the family size. Section 36B(c)(1)(E) suspended the words "but does not exceed 400 percent" only for taxable years "beginning after December 31, 2020, and before January 1, 2026". That text was read on October 10, 2026 with Public Law 119-21 as the latest amendment; H.R. 1834, which would reinstate the enhancement for three years, passed the House on January 8, 2026 and has not passed the Senate. If Congress restores it, every table above stops applying.
Which poverty line. Treasury Regulation 1.36B-1(h) uses the guidelines in effect on the first day of the open enrollment period that precedes the coverage year. Open enrollment for 2026 coverage began November 1, 2025, when the 2025 guidelines (90 FR 5917, effective January 15, 2025) were current: $15,650 for one person plus $5,500 for each additional person in the 48 states and DC, $19,550 plus $6,880 in Alaska, $17,990 plus $6,330 in Hawaii. That is why 2026 coverage uses 2025 figures.
Household income is modified adjusted gross income under section 36B(d)(2): adjusted gross income plus tax-exempt interest, excluded foreign earned income, and the untaxed part of Social Security benefits, for everyone in the tax household who is required to file a return.
The Medicaid floor. In states that expanded Medicaid, 42 CFR 435.119 covers adults aged 19 to 64 with income at or below 133% of the poverty line, and 42 CFR 435.603(d)(4) subtracts five percentage points of the poverty level before testing, so the practical line is 138%. Medicaid uses the guidelines in effect when eligibility is determined (42 CFR 435.4), so a 2026 determination generally tests against 138% of the 2026 guideline: $22,025 for one person and $29,863 for two; the table's $21,597 and $29,187 are what the Marketplace screened against when it priced 2026 coverage. Below the line, an adult in an expansion state is generally sent to Medicaid instead of the credit. In states that did not expand, adults under 100% of the poverty line often qualify for neither.
Settling up. The credit is usually paid in advance from the income you estimate at enrollment and reconciled on Form 8962. Public Law 119-21 section 71305 struck the cap on repaying excess advance payments for taxable years beginning after December 31, 2025, so an estimate that ends up over the cliff means repaying every advance dollar.
The enrollment that opens November 1 is for 2027
HealthCare.gov's calendar: open enrollment starts November 1, December 15 is the last day to pick a plan that starts January 1, and January 15 is the last day to enroll for the year (state-run exchanges can set their own deadlines). Coverage chosen this November uses the 2026 guidelines (91 FR 1797, effective January 13, 2026: $15,960 plus $5,680) and the 2027 table in Rev. Proc. 2026-26 (2.15% at the bottom, a flat 10.22% from 300% to 400%). The engine computes the 2027 cliff at $63,840 for one person, $86,560 for two and $132,000 for four. The same couple at a $2,000 a month benchmark would get $15,154 at $86,560 and nothing at $86,561. The 2026 figures still govern the 2026 return, and 2026 income can be managed until December 31.
What changes the answer
- Household size. Each person in the tax household adds $5,500 to the 2026 poverty line and $22,000 to the cliff. Household size counts everyone on the return; the benchmark premium counts only those enrolling.
- The benchmark premium. 45 CFR 147.102 lets insurers charge adults up to three times as much at the top of the age curve as at 21, and premiums vary by county. KFF's county-weighted national average benchmark premium for 2026 is $625 a month for a 40-year-old; a 60-year-old's is far higher. HealthCare.gov shows the Silver premium for your own ages.
- What counts as income. A Roth conversion, a capital gain, a traditional IRA or 401(k) withdrawal, interest and dividends all raise MAGI; a Roth withdrawal or spending from a savings account does not. The withdrawal order calculator compares sources of cash, and the Roth conversion ladder calculator sizes a conversion.
What the calculator does not model: employer coverage offers that make you ineligible, married filing separately, the IRS practice of looking up the percentage at whole percents of the poverty line (the credit on a filed return can differ by a few dollars; the 400% test itself is not rounded), mid-year changes and monthly proration, cost-sharing reductions on Silver plans below 250% of the line, tobacco surcharges, and the 2027 citizenship and status limits in Public Law 119-21 section 71301.
What to do first
- Add up your expected 2026 MAGI line by line, including conversions, gains and the add-backs, and compare it with the cliff for your household size in the first table. If you are close, the remaining weeks of 2026 are when a conversion, a sale or a bonus moves you across.
- Run that income in the ACA subsidy calculator with the benchmark premium quoted for your ages and county. It shows the credit at your income, the room before the cliff and what the first dollar over costs.
- Before enrolling for 2027, rerun it with the 2027 coverage year selected and set your advance credit from a cautious income estimate; any excess is repaid in full.
Next steps: read the library chapter on health insurance before Medicare, and the glossary entries for the ACA premium tax credit and cost-sharing reductions.
Not tax or legal advice. Federal rules as enacted in 26 U.S.C. 36B and published by the IRS, HHS and HealthCare.gov, read on October 10, 2026; confirm with a tax professional before acting.