What happened to the enhanced subsidies?
From 2021 through 2025, the American Rescue Plan and Inflation Reduction Act boosted marketplace subsidies significantly. People above 400% of the federal poverty level (FPL) could get help for the first time, and everyone below that threshold paid less.
Those enhancements expired on December 31, 2025. Congress tried to extend them. The House passed a three-year extension in January 2026 with bipartisan support (230-196), but the Senate version failed to get the 60 votes needed to advance. A bipartisan group is still working on a compromise (the CARE Act), but as of now, no extension is in effect.
The practical result: subsidies still exist, but they're smaller, and fewer people qualify.
Who qualifies for a subsidy in 2026?
You can get a premium tax credit (PTC) if your household income falls between 100% and 400% of the federal poverty level. In states that expanded Medicaid, the effective floor is about 138% FPL, since Medicaid covers people below that.
The 2026 federal poverty levels (for the 48 contiguous states) are:
| Household size | 100% FPL | 250% FPL | 400% FPL (subsidy cap) |
|---|---|---|---|
| 1 person | $15,650 | $39,125 | $62,600 |
| 2 people | $21,150 | $52,875 | $84,600 |
| 4 people | $32,150 | $80,375 | $128,600 |
The subsidy cliff is back
This is the biggest change. During the enhanced period, subsidies phased out gradually. A household at 450% FPL still got some help. Now there is a hard cutoff at 400% FPL.
That means a single person earning $62,600 gets a subsidy, but someone earning $63,000 gets nothing. A few hundred dollars of extra income can mean thousands of dollars in lost premium help. If your income is anywhere near that line, it matters a lot for tax planning.
How much do you pay toward your premium?
Under the original ACA rules (which are back in effect), your required premium contribution depends on your income as a percentage of FPL. The rates for 2026:
| Income (% of FPL) | You pay (% of income) |
|---|---|
| 100% - 150% | 2.1% - 4.1% |
| 150% - 200% | 4.1% - 6.6% |
| 200% - 250% | 6.6% - 8.4% |
| 250% - 300% | 8.4% - 9.96% |
| 300% - 400% | 9.96% |
| Above 400% | No subsidy |
Compare that to the enhanced rates, where the cap was 8.5% and there was no income ceiling. A 60-year-old couple near 400% FPL could go from paying about 8.5% of income to paying full price, a swing of over $15,000 per year.
What about cost-sharing reductions?
Cost-sharing reductions (CSR) were not part of the enhanced subsidy changes, so they work the same as before. If your income is below 250% FPL and you pick a Silver plan, the insurer is required to give you a version with lower deductibles and copays.
- 100% - 150% FPL: Silver plan with 94% actuarial value. Deductibles close to $0. Very low copays.
- 150% - 200% FPL: Silver plan with 87% AV. Deductibles around $800-$1,500.
- 200% - 250% FPL: Silver plan with 73% AV. Moderate reduction in deductibles and copays.
CSR only applies to Silver plans. This is why Silver is often the best value for lower-income households, even if a Bronze plan has a lower sticker price.
Try the calculator
Plug in your ZIP code, income, age, and household size to get a rough estimate from the actual CMS Marketplace API.
Subsidy Estimator
Enter your info below to get a rough estimate of your monthly premium tax credit for a 2026 marketplace plan.
What should you do right now?
If you already have a marketplace plan, check whether your subsidy changed for 2026. Many people auto-renewed without realizing their monthly cost went up. Log into HealthCare.gov (or your state exchange) and look at your current premium and tax credit.
If you don't have coverage, you can still enroll during a Special Enrollment Period if you recently lost other coverage, moved, had a baby, or experienced certain other qualifying events. Open Enrollment for 2027 starts November 1, 2026.
If your income is near 400% FPL, talk to an accountant or use a marketplace calculator before the end of the year. Contributing to a traditional IRA or HSA can lower your modified adjusted gross income enough to keep you under the cliff.