Everyone you claim on your return, including yourself
Alaska and Hawaii have their own poverty guidelines
Modified adjusted gross income (MAGI) — what you expect to earn, not last year
What counts toward MAGI?
The second-lowest-cost Silver plan for your household — look it up on healthcare.gov
Why this plan and not the one I want to buy?
Premium tax credit
$0
Credit across the income range, with the 400% cliff as the drop to zero. The dot is your household.
- Your income as a share of the poverty line
- 0%
- You pay for the benchmark plan
- $0
- Income left before the cliff
- $0
- What crossing it costs
- $0
ACA subsidy cliff calculator
See your 2027 premium tax credit, how close your income sits to the 400% poverty-line cliff, and exactly what one dollar over it would cost.
The enhanced ACA subsidies expired on 1 January 2026, which brought back the 400% federal poverty level cliff. Below that line a household pays at most 10.22% of its income toward the benchmark Silver plan and the credit covers the rest; one dollar above it, the credit is $0 with no taper. For a two-person household in the contiguous states, that line sits at $86,560 of 2027 income.
Reviewed by RuleCost Editorial Team, Editorial Team. Rules for 2027, updated 17 Sept 2026.
How to use it
- 1Enter how many people are on your tax return and which state group you live in — Alaska and Hawaii have higher poverty guidelines, so their cliff sits at a higher income.
- 2Enter the household income (MAGI) you expect for 2027, not what you earned last year. The credit is settled against your actual income when you file, so an estimate that is too low has to be paid back.
- 3Look up the second-lowest-cost Silver plan premium for your household on healthcare.gov or your state exchange, and enter it. The credit is measured against that plan whichever plan you end up buying.
- 4Read the two cliff figures: how much income you have left before the cliff, and what crossing it would cost you for the year.
How this calculator works
The credit is worked out in three steps, in this order.
Your income as a share of the poverty line. The Marketplace compares your household MAGI to the federal poverty guideline for your household size, using the guidelines published the year before the coverage year. For 2027 coverage that means the 2026 guidelines: $15,960 for one person, plus $5,680 for each additional person in the contiguous states.
The share of income you are expected to pay. The IRS publishes an applicable percentage table each year. For 2027 it runs from 2.15% of income at the bottom to 10.22% from 300% of the poverty line upward, rising smoothly in between.
The credit itself. Multiply your income by that percentage — this is what you are expected to contribute for the year. The credit is the benchmark Silver premium minus that contribution. If your expected contribution is larger than the premium, there is no credit.
Above 400% of the poverty line none of this applies. There is no percentage, no contribution calculation, and no credit.
A worked example
A two-person household in the contiguous states, with a benchmark Silver plan of $1,200 a month ($14,400 a year). The poverty line for two people is $21,640, so the cliff sits at $86,560.
| 2027 income | % of poverty line | Expected share | Credit for the year | You pay per month |
|---|---|---|---|---|
| $40,000 | 185% | 6.03% | $11,989 | $201 |
| $60,000 | 277% | 9.51% | $8,694 | $476 |
| $80,000 | 370% | 10.22% | $6,224 | $681 |
| $86,560 | 400% | 10.22% | $5,554 | $737 |
| $86,561 | just over 400% | none | $0 | $1,200 |
The last two rows are the whole point. One dollar of extra income costs this household $5,554 for the year, and raises what they pay each month from $737 to $1,200.
Where the cliff falls for each household size
Four times the 2026 poverty guideline, which is the income that puts a household over the edge for 2027 coverage.
| Household size | 48 states & DC | Alaska | Hawaii |
|---|---|---|---|
| 1 | $63,840 | $79,800 | $73,440 |
| 2 | $86,560 | $108,200 | $99,560 |
| 3 | $109,280 | $136,600 | $125,680 |
| 4 | $132,000 | $165,000 | $151,800 |
| 5 | $154,720 | $193,400 | $177,920 |
What changed, and when
Under the original 2010 rules, the credit stopped at 400% of the poverty line. The American Rescue Plan Act removed that cliff for 2021 and 2022 by capping premiums at 8.5% of income at every income level, and the Inflation Reduction Act extended the change through 2025. Neither was made permanent. They lapsed on 1 January 2026, and the cliff has applied since.
Questions
- What is the ACA subsidy cliff?
- It is the point where the premium tax credit stops tapering and drops straight to zero. A household at 400% of the federal poverty line still receives a credit; the same household one dollar higher receives nothing. Between 2021 and 2025 this cliff did not exist, because the American Rescue Plan Act capped premiums at 8.5% of income at every income level. That provision expired on 1 January 2026.
- How much income puts me over the cliff?
- Four times the federal poverty guideline for your household size and state group. Using the 2026 guidelines that apply to 2027 coverage, that is $63,840 for one person, $86,560 for two and $132,000 for a family of four in the contiguous states. Alaska and Hawaii have their own, higher guidelines.
- Why does the calculator ask for the second-lowest-cost Silver plan?
- Because the law measures the credit against that specific plan, wherever you live. Your credit is the benchmark premium minus the share of income you are expected to contribute, and you can then spend that credit on any metal level. It depends on your county and the ages of everyone covered, so it has to be looked up rather than estimated.
- Can I still do something about my income for this year?
- Sometimes. MAGI counts income after deductible contributions to a traditional 401(k), traditional IRA or HSA, so contributions made before the relevant deadline can lower it. This is information, not advice — the amounts, deadlines and eligibility rules are specific enough that it is worth confirming with a tax professional before acting.
- What happens if I underestimate my income and go over?
- Any advance credit you received for a year you turned out to be ineligible for is reconciled on Form 8962 when you file, and the excess is repaid with your tax return. Above 400% of the poverty line the repayment is not capped, so a household that crosses the cliff mid-year can owe back everything it received.