2026 ACA Subsidy Income Limits: The Exact Cliff Numbers
If you buy health insurance through the marketplace, there is one number that matters more than any other: the income level where your premium tax credit drops to zero. For 2026, with the enhanced subsidies expired, that "subsidy cliff" is back at 400% of the federal poverty level (FPL).
Here are the exact 2026 figures, the full table by household size, and the rules that decide which row applies to you.
The Headline Numbers
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Try QuantCalc Free →For 2026 coverage (based on the 2025 HHS poverty guidelines for the 48 contiguous states and DC), the 400% FPL subsidy cliff is:
- 1 person: $62,600
- 2 people: $84,600
- 3 people: $106,600
- 4 people: $128,600
If your Modified Adjusted Gross Income (MAGI) lands at or below these amounts, you qualify for a premium tax credit. One dollar above, and you lose the entire subsidy — there is no phase-out.
Full 2026 Income-Limit Table (400% FPL)
| Household size | 100% FPL (base) | 400% FPL (subsidy cliff) |
|---|---|---|
| 1 | $15,650 | $62,600 |
| 2 | $21,150 | $84,600 |
| 3 | $26,650 | $106,600 |
| 4 | $32,150 | $128,600 |
| 5 | $37,650 | $150,600 |
| 6 | $43,150 | $172,600 |
| 7 | $48,650 | $194,600 |
| 8 | $54,150 | $216,600 |
Each additional person adds $5,500 to the base (100% FPL) and $22,000 to the 400% cliff. Alaska and Hawaii use higher guidelines (Alaska base $19,550; Hawaii base $17,990).
Why It's a Cliff, Not a Slope
Under the Inflation Reduction Act's temporary enhancement, subsidies phased out gradually and no one paid more than 8.5% of income toward the benchmark plan. That enhancement expired, so for 2026 the pre-2021 rule returns: subsidies are available up to 400% FPL and vanish completely above it.
That makes the cliff brutal for people just over the line. A household of two at $84,600 might receive $12,000+ in annual premium tax credits; at $84,601 they receive nothing. The marginal "tax" on that one dollar can exceed 1,000,000%.
What Counts Toward the Limit (MAGI)
The income tested against these limits is MAGI, which for most marketplace enrollees is:
- Adjusted gross income (AGI), plus
- Tax-exempt interest, plus
- Untaxed Social Security benefits, plus
- Excluded foreign income
Crucially, MAGI includes Roth conversions, capital gains, IRA and 401(k) withdrawals, and taxable interest — the exact income sources early retirees control. That's why managing the cliff is really an income-sequencing problem. See how capital gains count toward the cliff and the full ACA cliff strategy guide.
How to Stay Under the Cliff
- Sequence withdrawals so taxable income lands below your household's 400% FPL line in marketplace years.
- Delay large Roth conversions until you're on Medicare (age 65+), when the ACA cliff no longer applies.
- Harvest gains in low-income years before you start marketplace coverage, not during.
- Watch capital gains and dividends — they count even when they're taxed at 0% federally.
You can test any income scenario against your exact household-size cliff in the QuantCalc ACA subsidy calculator.
Frequently Asked Questions
What is the ACA subsidy income limit for 2026?
For 2026 coverage the subsidy cliff is 400% of the federal poverty level: $62,600 for a single person, $84,600 for a household of two, $106,600 for three, and $128,600 for four. Income at or below these amounts qualifies for a premium tax credit; income above them does not.
What income counts toward the ACA cliff?
The marketplace uses Modified Adjusted Gross Income (MAGI): your AGI plus tax-exempt interest, untaxed Social Security, and excluded foreign income. That includes Roth conversions, capital gains, dividends, and retirement-account withdrawals — even capital gains taxed at 0% federally still count.
What happens if I go $1 over the ACA subsidy cliff?
You lose your entire premium tax credit for the year — there is no gradual phase-out in 2026. A household receiving $12,000+ in annual subsidies would owe the full amount back, making one dollar of extra income extraordinarily expensive.
Are the 2026 ACA income limits higher in Alaska and Hawaii?
Yes. Both use higher federal poverty guidelines. Alaska's base (100% FPL) is $19,550 with $6,880 per additional person; Hawaii's base is $17,990 with $6,310 per additional person. Multiply by four for each state's 400% cliff.
Did the ACA subsidy cliff really come back for 2026?
Yes. The enhanced premium tax credits from the Inflation Reduction Act expired, so the pre-2021 structure returned: subsidies are capped at 400% FPL with a hard cliff above it, rather than the gradual 8.5%-of-income phase-out that applied through 2025.
Frequently Asked Questions
For 2026 coverage the subsidy cliff is 400% of the federal poverty level: $62,600 for a single person, $84,600 for a household of two, $106,600 for three, and $128,600 for four. Income at or below these amounts qualifies for a premium tax credit; income above them does not.
The marketplace uses Modified Adjusted Gross Income (MAGI): your AGI plus tax-exempt interest, untaxed Social Security, and excluded foreign income. That includes Roth conversions, capital gains, dividends, and retirement-account withdrawals — even capital gains taxed at 0% federally still count.
You lose your entire premium tax credit for the year — there is no gradual phase-out in 2026. A household receiving $12,000+ in annual subsidies would owe the full amount back, making one dollar of extra income extraordinarily expensive.
Yes. Both use higher federal poverty guidelines. Alaska's base (100% FPL) is $19,550 with $6,880 per additional person; Hawaii's base is $17,990 with $6,310 per additional person. Multiply by four for each state's 400% cliff.
Yes. The enhanced premium tax credits from the Inflation Reduction Act expired, so the pre-2021 structure returned: subsidies are capped at 400% FPL with a hard cliff above it, rather than the gradual 8.5%-of-income phase-out that applied through 2025.