Federal Poverty Level: What It Is and How to Calculate It

The federal poverty level is a set of annual income figures the Department of Health and Human Services publishes each January to decide who qualifies for means-tested benefits like Medicaid, SNAP, and subsidized marketplace insurance. For 2026, the poverty level for a single person is $15,960 in the 48 contiguous states and D.C., and it rises by $5,680 for each additional person in the household.¹ Where your household lands relative to that number, expressed as a percentage, determines which programs you can apply for.

2026 Poverty Level by Household Size

HHS adjusts the guidelines each year based on changes in the Consumer Price Index for All Urban Consumers, as required by federal law.² The 2026 guidelines took effect on January 13, 2026.¹

For the 48 contiguous states and the District of Columbia:¹

1 person: $15,960
2 people: $21,640
3 people: $27,320
4 people: $33,000
5 people: $38,680
6 people: $44,360
7 people: $50,040
8 people: $55,720
Each additional person: add $5,680

Alaska and Hawaii have higher thresholds because of their elevated cost of living. Alaska’s guideline starts at $19,950 for one person and adds $7,100 per additional household member, putting a four-person family at $41,250. Hawaii starts at $18,360 for one person, adds $6,530 per additional member, and sets the four-person threshold at $37,950.³

How to Calculate Your Percentage of the Poverty Level

Most benefit applications run this math for you, but knowing your number before you apply helps you target programs where you actually qualify. Take your household’s annual income and divide it by the poverty guideline for your household size. Multiply by 100.

A family of four in the contiguous U.S. earning $49,500 divides $49,500 by $33,000, which equals 1.5. That household is at 150% of the federal poverty level.¹ That percentage is what programs compare against their own cutoffs, which are usually expressed the same way: 130% of FPL, 138%, 200%, and so on.

Who Counts as Part of Your Household

The guideline that applies to you depends on your household size, and different programs count household members differently. The tax filer, their spouse if filing jointly, and any claimed dependents almost always count as one household.

For Medicaid and ACA marketplace coverage, household size mirrors your federal tax return. Everyone listed on the return counts, including children who aren’t applying for coverage themselves.⁴ For SNAP, household members are people who live together and buy and prepare food together, though children under 22 living with a parent are automatically included in the parent’s household regardless of whether they share meals.⁵

Unrelated roommates who pay their own way and handle their own food generally don’t count as part of your household for any program. The point is to capture people who genuinely share financial resources.

What Counts as Income

Programs generally look at income before taxes, but the specific definition depends on which program you’re applying for. The most common standard is Modified Adjusted Gross Income, or MAGI, used for Medicaid, the Children’s Health Insurance Program, and ACA marketplace subsidies.

MAGI starts with your adjusted gross income from your tax return, then adds back three items: untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest.⁶ For most people who don’t receive Social Security or earn foreign income, MAGI is identical to AGI. A handful of deductions reduce the number: student loan interest, IRA contributions if you don’t have a workplace retirement plan, and educator expenses among them. Child support payments, mortgage interest, and property taxes do not reduce MAGI.

SNAP uses a different calculation. It counts gross monthly income from all sources, including wages, Social Security, and unemployment benefits, and compares that to 130% of the poverty guidelines. A separate net income test subtracts certain allowable costs like shelter expenses and dependent care. Non-cash benefits like SNAP itself, housing vouchers, and one-time payments such as insurance settlements or tax refunds are generally excluded across all programs.

Self-Employment Income

If you’re self-employed, programs count your net earnings, not your gross revenue. You subtract ordinary business expenses the same way you would on Schedule C. A freelancer who invoiced $50,000 but spent $20,000 on supplies, software, and equipment has $30,000 in self-employment income for poverty-level purposes, not $50,000.

Programs That Use the Poverty Level

The guidelines work as a baseline that programs multiply to set their own income cutoffs. A program using 200% of FPL doubles the guideline for your household size. Each program picks its own multiplier.

Medicaid

In states that expanded Medicaid under the Affordable Care Act, adults qualify with household income up to 138% of the poverty level.⁴ For a single person in 2026, that’s about $22,025. Children and pregnant women often qualify at higher income levels. Exact thresholds vary by state, and not every state has adopted expansion.

Children’s Health Insurance Program

CHIP covers children in families that earn too much for Medicaid but can’t afford private insurance. Depending on the state, CHIP eligibility ranges from about 200% to as high as 400% of the poverty level.⁷ At the high end, a family of four earning up to $132,000 could qualify in some states.

ACA Marketplace Premium Tax Credits

The temporary enhanced credits that removed the income cap expired at the end of 2025. For 2026, the original 400% FPL eligibility ceiling is back in effect, meaning a household earning more than four times the poverty guideline no longer qualifies for any premium subsidy.⁸ For a family of four in 2026, that ceiling is $132,000. Below the line, the credit scales with income, and lower earners get larger subsidies.

SNAP

SNAP sets its gross income limit at 130% of the poverty guidelines and its net income limit at 100%. A household must pass both tests in most cases.⁹

School Meals

The National School Lunch and Breakfast Programs use FPL percentages to determine who qualifies for free or reduced-price meals. Children in households at or below 130% of the poverty guidelines eat free. Those between 130% and 185% qualify for reduced-price meals.¹⁰ For a family of four in 2026, the free-meal cutoff is roughly $42,900 and the reduced-price cutoff is about $61,050.

LIHEAP

The Low Income Home Energy Assistance Program helps cover heating and cooling costs. Federal law caps LIHEAP eligibility at 150% of the poverty guidelines, though states can use 60% of state median income if that figure is higher.¹¹

Lifeline Phone and Internet Subsidy

The FCC’s Lifeline program provides a monthly discount on phone or internet service. You qualify if your household income is at or below 135% of the federal poverty guidelines, or if you already participate in programs like SNAP, Medicaid, or SSI.¹² For a single person in 2026, the income threshold is about $21,546.³

When New Guidelines Take Effect

HHS publishes updated guidelines in the Federal Register each January, and they take effect immediately. Individual programs often lag. SNAP’s income limits update on October 1 to align with the federal fiscal year. School meal thresholds change on July 1. The ACA marketplace applies the guidelines for the coverage year, so 2026 marketplace subsidies use the 2026 guidelines.¹ If you’re applying in the first few months of the year, ask which year’s guidelines the program is using; updated numbers may raise the cutoffs slightly in your favor.

Programs the Poverty Level Does Not Govern

The guidelines do not apply to every federal program. Social Security retirement and disability benefits, veterans’ benefits, and unemployment insurance all use their own eligibility formulas unrelated to FPL. The poverty level primarily matters for means-tested programs designed to help people with limited income cover essentials like food, health care, and housing.

1
Federal Register. Annual Update of the HHS Poverty Guidelines
2
Office of the Law Revision Counsel. United States Code Title 42 – 9902
3
U.S. Department of Health and Human Services (ASPE). 2026 Poverty Guidelines
4
HealthCare.gov. Federal Poverty Level (FPL) – Glossary
5
eCFR. Certification of Eligible Households
6
Centers for Medicare and Medicaid Services. Job Aid – Income Eligibility Using MAGI Rules
7
Medicaid.gov. Medicaid, Children’s Health Insurance Program, and Basic Health Program Eligibility Levels
8
Congress.gov. Enhanced Premium Tax Credit and 2026 Exchange Premiums
9
USDA Food and Nutrition Service. SNAP Eligibility
10
USDA Food and Nutrition Service. Child Nutrition Programs – Income Eligibility Guidelines (2026-2027)
11
The LIHEAP Clearinghouse. LIHEAP Income Eligibility for States and Territories
12
Federal Communications Commission. Lifeline Support for Affordable Communications