Last fact-check: July 27, 2026 · Primary sources: IRS, HealthCare.gov · General information, not tax advice
Quick answer
The subsidy cliff is back for 2026. The enhanced premium tax credits expired December 31, 2025, so Marketplace subsidies for 2026 coverage are again limited to households between 100% and 400% of the federal poverty level. For 2026 coverage the 400% line uses the 2025 poverty guidelines: $62,600 for a single person and $128,600 for a family of four (48 states). Estimated income even $1 above 400% FPL means no premium tax credit — and full repayment of any advance credit at tax time.
Key takeaways
- For 2026 there is no repayment cap at any income level: excess advance credit must be repaid in full.
- A House-passed bill (H.R. 1834) would restore the enhanced credits, but it is not law as of July 27, 2026.
- What counts is annual MAGI for the coverage year — check it before and during the year, not just at enrollment.
The 2026 cliff in numbers
| Household size | 100% FPL | 400% FPL (cliff) |
|---|---|---|
| 1 | $15,650 | $62,600 |
| 4 | $32,150 | $128,600 |
Alaska and Hawaii use higher guidelines. Other household sizes: see the poverty-guideline table linked below and multiply by four.
What changed for 2026
From 2021 through 2025, temporary law removed the 400% cap and no household paid more than 8.5% of income for the benchmark plan. Those enhancements expired after December 31, 2025. For coverage in 2026, the original ACA rules apply: eligibility runs from 100% to 400% FPL, and the required contribution scale runs from 2.10% to 9.96% of income (IRS Rev. Proc. 2025-25).
Pending legislation — not law: the House passed H.R. 1834 on January 8, 2026, which would extend the enhanced credits through 2028 retroactively. It had not passed the Senate as of July 27, 2026. This page follows current law and will be updated if that changes.
Why $1 matters at the cliff
For tax years beginning after December 31, 2025, the former income-based caps on repaying excess advance credit are removed — excess advance credit must be repaid in full at any income level. Crossing 400% FPL is still the sharpest edge: above it you lose the entire credit, so every advance dollar received becomes repayable. A small year-end bonus, capital gain or withdrawal that pushes MAGI over the line can therefore cost thousands.
Near the line? Watch MAGI all year: the test uses your final annual modified adjusted gross income, not the estimate you gave at enrollment. Update your Marketplace application when income changes.
If your income is above 400% FPL
You can still buy Marketplace coverage at full price, compare off-Marketplace plans, or check employer coverage. If your income is near the line, the IRS pages linked below explain what counts in MAGI before you make year-end moves.
Related guides
- Premium Tax Credit 2026: how the subsidy works
- ACA in 2026: why subsidies changed
- Federal Poverty Level chart
Official sources
- IRS — Premium Tax Credit eligibility
- IRS — Rev. Proc. 2025-25 (2026 percentages)
- HealthCare.gov — FPL used for 2026 savings
- IRS — PTC FAQ update (repayment caps removed for TY2026+)
- House Clerk — H.R. 1834 vote, Jan 8, 2026
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 scale, poverty-guideline figures and repayment rule were checked against the linked IRS and HealthCare.gov sources on July 27, 2026. Your eligibility depends on your final MAGI. The Guru Gazette is independent and is not affiliated with any government agency.
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