If you buy health insurance on the ACA marketplace, the government may pay part of your premium for you — a "premium tax credit," usually applied as an advance discount on your monthly bill. But the amount depends on a chain of moving parts: your household income compared to the Federal Poverty Level, your household size, and the benchmark premium in your state.

This free estimator runs that chain in seconds. Enter your household income, household size and state and you'll see a rough monthly and annual subsidy estimate for 2026, the expected premium you'd pay after the subsidy, and the income bands that moved the number most. It takes less than a minute — and it tells you whether the marketplace is worth a closer look before open enrollment.

How we estimate

The ACA premium tax credit follows one core formula, and this tool implements a simplified version of it:

Estimated subsidy = benchmark Silver premium − (household income × expected contribution %)

Each input drives part of the math:

The result is shown as a flat central estimate rather than a range, because eligibility bands matter more here than insurer-to-insurer variation.

Estimates only — not an official eligibility determination. This tool is a simplified planning model, not a government calculator. Your actual premium tax credit depends on your exact MAGI, your state and ZIP code, the real benchmark plan in your area, your household's ages, and whether enhanced subsidies are extended for 2026. Always confirm your subsidy on HealthCare.gov or your state marketplace before making decisions. This is not financial advice.

Frequently asked questions

How does this ACA subsidy estimator work?

It is a planning estimate, not an official determination. The tool compares your household income to the 2026 Federal Poverty Level, works out the approximate share of income the ACA expects you to pay toward a benchmark Silver plan (a sliding scale from 0% to 8.5%), and subtracts that expected contribution from an approximate benchmark premium for your state and household size. The remainder is the estimated monthly premium tax credit.

What income counts for an ACA subsidy estimate?

The ACA uses modified adjusted gross income (MAGI) — roughly your adjusted gross income plus tax-exempt Social Security, foreign earned income and tax-exempt interest — for everyone in your tax household who must file a return. Enter your best estimate of total 2026 MAGI for your household.

What if my income is below 138% of the poverty level?

In most states that expanded Medicaid, households below 138% of the Federal Poverty Level generally qualify for Medicaid rather than a marketplace subsidy, so this tool shows a Medicaid path instead of a subsidy number. In the handful of states that did not expand Medicaid, coverage options are much more limited — check your state's marketplace.

Do enhanced ACA subsidies still apply in 2026?

The enhanced premium tax credits, which removed the old 400%-of-poverty-level cutoff and capped costs at 8.5% of income for higher earners, were scheduled to expire after 2025. This estimator assumes they are extended, which Congress was debating. If they expire, households above 400% of the poverty level would generally receive no subsidy — compare your situation on HealthCare.gov before relying on the estimate.

Keep reading: health insurance guides

An estimate is a starting point — these guides help you turn it into real coverage:

Ready to check for real? Apply on HealthCare.gov (or your state's own marketplace) during open enrollment to get your official premium tax credit — the application takes about 30 minutes and the credit usually lowers your monthly bill automatically.
CW
CoverWise Research Team

Our guides and tools are researched from insurer rate filings, state insurance department data and industry reports — then written in plain English.

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