Last fact-check: July 27, 2026 · Primary sources: IRS, HealthCare.gov · General information, not tax advice
Quick answer
The premium tax credit lowers monthly Marketplace premiums for households with 2026 income between 100% and 400% of the federal poverty level. The enhanced credits expired after 2025, so for 2026 you pay a sliding share of income for the benchmark plan — from 2.10% at the lowest incomes to 9.96% at 300–400% FPL — and the credit covers the rest. It is reconciled on IRS Form 8962 with your tax return.
Key takeaways
- 2026 coverage uses the 2025 poverty guidelines ($15,650 single / $32,150 family of four, 48 states).
- Above 400% FPL there is no credit for 2026 — and for TY2026 the repayment caps on excess advance credit are removed at every income level.
- A House-passed extension (H.R. 1834) was not law as of July 27, 2026.
2026 contribution percentages
| Income (% of FPL) | Your share of income |
|---|---|
| Under 133% | 2.10% |
| 133% – under 150% | 3.14% – 4.19% |
| 150% – under 200% | 4.19% – 6.60% |
| 200% – under 250% | 6.60% – 8.44% |
| 250% – under 300% | 8.44% – 9.96% |
| 300% – 400% | 9.96% |
How the credit is calculated
The credit equals the cost of the second-lowest-cost Silver plan in your area minus your expected contribution from the table above. You can take it in advance to lower monthly premiums or claim it at filing. Either way, Form 8962 reconciles the advance against your actual annual income.
Who qualifies in 2026
You generally qualify if your household income is 100–400% FPL, you enroll through the Marketplace, you are not eligible for affordable employer coverage or most government coverage, and you file a tax return (jointly if married, with exceptions). For 2026, employer coverage is treated as affordable if the employee’s required contribution is no more than 9.96% of household income.
Reconciliation cuts both ways: if your final income is higher than estimated, the excess advance credit must be repaid — for tax years beginning after December 31, 2025, the former income-based repayment caps no longer apply at any income level. If income is lower, you may get more credit at filing.
Pending legislation — not law: H.R. 1834 (House-passed January 8, 2026) would restore the enhanced credits retroactively for 2026–2028. It had not passed the Senate as of July 27, 2026. This page follows current law.
Related guides
- The 2026 subsidy cliff, explained
- ACA in 2026: what changed and how to enroll
- Federal Poverty Level chart
Official sources
- IRS — Premium Tax Credit eligibility
- IRS — Rev. Proc. 2025-25 (2026 tables)
- HealthCare.gov — poverty levels for 2026 savings
- IRS — PTC FAQ update (repayment caps removed for TY2026+)
Editorial status: This guide has been checked against the cited official sources. Independent subject-matter review has not been completed. The eligibility range, 2026 percentage table, affordability threshold and reconciliation rules were checked against the linked IRS and HealthCare.gov sources on July 27, 2026. Your credit depends on your final MAGI and local benchmark premium. The Guru Gazette is independent and is not affiliated with any government agency.
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