Premium Tax Credit Calculator
Work out your 2026 ACA premium tax credit the way Form 8962 does, and see how much of the advance payments you have to pay back. For 2026 there is no cap on that repayment.
AGI plus tax-exempt interest, untaxed Social Security and excluded foreign income, for you, your spouse and dependents who must file.
You, your spouse if filing jointly, and everyone you claim as a dependent.
The whole premium, including the part the credit pays.
The second-lowest-cost silver plan for your household, not the plan you chose.
What the Marketplace sent to your insurer. Enter 0 if you paid full price.
Filing status, months covered, special cases
The calculator assumes the same amounts in every covered month.
You repay with your 2026 return
$1,636
Your advance payments of $5,400 were more than the $3,764 credit you qualify for. The difference is added to your tax on Form 8962, line 27, and Schedule 2.
| Line 1 · Tax family size | 1 |
|---|---|
| Line 3 · Household income (MAGI) | $40,000 |
| Line 4 · Federal poverty line2025 HHS guidelines, 48 states and DC | $15,650 |
| Line 5 · Income as a share of the poverty line | 255% |
| Line 7 · Applicable figureyou pay 8.59% of income toward the benchmark plan | 0.0859 |
| Line 8a · Your annual contributionline 3 × line 7 | $3,436 |
| Column (b) · Benchmark silver plan (SLCSP) | $7,200 |
| Column (c) · Your contribution | −$3,436 |
| Column (d) · Maximum premium assistance | $3,764 |
| Column (e) · Credit allowedsmaller of (d) and your premiums of $6,600 | $3,764 |
| Line 24 · Premium tax credit for 2026 | $3,764 |
| Line 25 · Advance payments (APTC) | −$5,400 |
| Line 27 · Excess advance payments to repayno repayment cap for 2026 | $1,636 |
No credit above 400% of the poverty line: $62,600 for 1 person in the 48 states and DC.
This is an estimate, not tax advice. It uses the published rules for the tax year shown and leaves out situations a short form cannot ask about. For a decision, check with the IRS, your state, or a tax professional.
How this is calculated
The premium tax credit pays part of the premium for a health plan bought through HealthCare.gov or a state Marketplace. During the year the Marketplace pays an estimate to your insurer each month (the advance payments, or APTC). When you file your 2026 return in 2027, Form 8962 works out the credit from your actual income and compares it with what was paid in advance.
What is different for 2026
- The enhanced credits ended. The larger credits and the missing income limit of 2021 to 2025 are written into the law for tax years “before January 1, 2026” (26 U.S.C. § 36B(b)(3)(A)(iii) and (c)(1)(E)). The House passed a three-year extension, H.R. 1834, on January 8, 2026. It has been on the Senate calendar since February 10, 2026 without a vote, and no other law has changed these rules as of the date this page was checked.
- The 400% income limit is back. Household income above 400% of the poverty line means no credit at all (§ 36B(c)(1)(A)).
- You pay a larger share. Your expected contribution toward the benchmark plan runs from 2.10% to 9.96% of income (IRS Rev. Proc. 2025-25), instead of 0% to 8.5% in 2025.
- No repayment cap. Through 2025, people under 400% of the poverty line repaid at most $375 to $3,250 of excess advance payments. Public Law 119-21, section 71305, removed that limit for tax years beginning after December 31, 2025. The IRS draft of the 2026 Form 8962 shows lines 28 and 29, where the cap used to go, as “Reserved for future use”.
The calculation, line by line
Line 5 divides household income by the poverty line for your family size and drops the decimals. Line 7 finds your applicable figure: inside each income band it rises in a straight line from the starting to the ending percentage and is rounded to two decimals of a percent. Line 8a multiplies income by that figure and rounds to whole dollars. The credit for the year is the benchmark silver plan premium (SLCSP) minus your contribution, but never more than the premiums for the plan you actually had. Advance payments above that credit are repaid in full.
Example with the starting values above: one person in Ohio with a household income of $40,000. The poverty line is $15,650, so income is 255% of it. The applicable figure is 8.44% + (9.96% − 8.44%) × 5 ÷ 50 = 8.59%, a contribution of $3,436. The benchmark plan costs $600 a month, $7,200 a year, so the credit is $7,200 − $3,436 = $3,764 (the plan chosen costs $6,600, which is more than that). The Marketplace paid $450 a month, $5,400, based on a lower income estimate. $5,400 − $3,764 = $1,636 is repaid. For 2025 the same person would have repaid at most $975.
We checked the method against IRS material: the straight-line rule reproduces all 168 rows of the IRS applicable figure table for 2020 (a year with the same table shape as 2026), and the worked examples in IRS Publication 974 for 2025 come out to the dollar.
Applicable percentages for 2026
| Income, % of poverty line | Starts at | Ends at |
|---|---|---|
| Under 133% | 2.10% | 2.10% |
| 133% to under 150% | 3.14% | 4.19% |
| 150% to under 200% | 4.19% | 6.60% |
| 200% to under 250% | 6.60% | 8.44% |
| 250% to under 300% | 8.44% | 9.96% |
| 300% to 400% | 9.96% | 9.96% |
Income limits for 2026
The law uses the poverty guidelines published before open enrollment for the year began, so 2026 coverage uses the 2025 HHS guidelines: $15,650 for one person and $5,500 for each additional person in the 48 states and DC, $19,550 and $6,880 in Alaska, $17,990 and $6,330 in Hawaii.
| Family size | 100% (48 states, DC) | 400% (48 states, DC) | 400% Alaska | 400% Hawaii |
|---|---|---|---|---|
| 1 | $15,650 | $62,600 | $78,200 | $71,960 |
| 2 | $21,150 | $84,600 | $105,720 | $97,280 |
| 3 | $26,650 | $106,600 | $133,240 | $122,600 |
| 4 | $32,150 | $128,600 | $160,760 | $147,920 |
| 5 | $37,650 | $150,600 | $188,280 | $173,240 |
| 6 | $43,150 | $172,600 | $215,800 | $198,560 |
What this calculator leaves out
It assumes the same premium, benchmark premium and advance payment in each covered month. Form 8962 works month by month when these change, when someone in the family could get employer coverage or Medicaid for part of the year, when a policy is shared with another tax family, or in the year of a marriage or divorce. People who can be claimed as someone else's dependent get no credit. For 2026 the law also ended the credit for lawfully present immigrants under 100% of the poverty line who cannot get Medicaid because of their status (section 71302), and for plans bought in a special enrollment period opened only because of low income (section 71304). Self-employed people who also deduct their health premiums use a separate IRS calculation.
Sources
Checked against the sources below on .
- Public Law 119-21, § 71305: repayment limit removed for tax years after 2025 (govinfo)
- 26 U.S.C. § 36B, Premium tax credit (govinfo)
- IRS Rev. Proc. 2025-25 (applicable percentage table for 2026)
- IRS: Questions and answers on the Premium Tax Credit (Q7, Q31)
- IRS: 2026 Form 8962, early release draft
- IRS: Instructions for Form 8962 (2025), line-by-line method
- HHS: 2025 poverty guidelines, 90 FR 5917 (Federal Register)
- H.R. 1834 (three-year extension, passed the House January 8, 2026): status at congress.gov
Questions people ask
Do I have to pay back the premium tax credit for 2026?
Yes, if your advance payments were more than the credit you qualify for. From tax year 2026 the full difference is due. The caps of $375 to $3,250 that applied for 2025 were removed by Public Law 119-21, section 71305.
What is the income limit for the premium tax credit in 2026?
400% of the 2025 poverty guidelines: $62,600 for one person, $84,600 for two and $128,600 for a family of four in the 48 states and DC. Above that there is no credit, and every advance payment is repaid.
Were the enhanced ACA subsidies extended for 2026?
Not as of October 22, 2026. The law limits the enhanced rules to tax years before January 1, 2026. The House passed a three-year extension (H.R. 1834) on January 8, 2026; the Senate has not voted on it.
How much of my income do I pay for the benchmark plan in 2026?
Between 2.10% and 9.96% of household income, set by IRS Rev. Proc. 2025-25. Under 133% of the poverty line it is 2.10%; from 300% to 400% it is 9.96%. For 2025 the range was 0% to 8.5%.
Which poverty guidelines count for 2026 coverage?
The 2025 HHS guidelines, because the law uses the figures published before open enrollment started: $15,650 for one person plus $5,500 per additional person in the 48 states and DC, $19,550 plus $6,880 in Alaska, $17,990 plus $6,330 in Hawaii.
What if I can't pay the amount back?
The repayment is added to your 2026 income tax and first comes out of any refund. For a balance you cannot pay at once, the IRS offers the same payment plans as for any other tax bill.