For the 2026 tax year, the Premium Tax Credit income limits run from 100% to 400% of the federal poverty line. For a single person in the 48 contiguous states, that means roughly $15,960 to $63,840 in annual household income. For a family of four, the range is about $33,000 to $132,000.1Internal Revenue Service. The Premium Tax Credit – The Basics Cross either end of that range and you lose the credit entirely, a stricter rule than the one that applied from 2021 through 2025.
2026 Income Ranges by Household Size
The dollar figures below come from the 2026 federal poverty guidelines published by the Department of Health and Human Services and used by the Marketplace for 2026 coverage.2ASPE. 2026 Poverty Guidelines: 48 Contiguous States The low end is 100% of the poverty line, the high end is 400%. These apply in the 48 contiguous states and Washington, D.C.:
- 1 person: $15,960 to $63,840
- 2 people: $21,640 to $86,560
- 3 people: $27,320 to $109,280
- 4 people: $33,000 to $132,000
- 5 people: $38,680 to $154,720
- Each additional person: add $5,680 at the lower end and $22,720 at the upper end
Alaska and Hawaii use higher poverty guidelines, so the eligibility floor and ceiling are higher there. For a single person, 100% of the poverty line is $19,950 in Alaska and $18,360 in Hawaii.3U.S. Department of Health and Human Services. 2026 Poverty Guidelines: Alaska and Hawaii
Which Income Number the Marketplace Uses
The Marketplace does not read your adjusted gross income directly off your tax return. It uses Modified Adjusted Gross Income, which starts with AGI and adds back three things:4Internal Revenue Service. Modified Adjusted Gross Income – Section: Premium Tax Credit
- Tax-exempt interest reported on Form 1040, line 2a
- The non-taxable portion of Social Security benefits
- Foreign earned income excluded on Form 2555
Most people have none of these add-backs, so their MAGI ends up equal or very close to their AGI.5HealthCare.gov. Modified Adjusted Gross Income (MAGI) – Glossary Supplemental Security Income does not count toward MAGI at all.
What matters is the total for the household, not just yours. A joint filer’s spouse counts. So does any dependent whose income is high enough that they are required to file a return. That combined MAGI is what gets compared to the poverty line for your household size.
Who Counts as Your Household
Household size for the Marketplace tracks your tax return: you, your spouse if you are married, and every person you claim as a dependent. Include them in the count even if they have their own health coverage and are not enrolling with you.6HealthCare.gov. Who’s Included in Your Household A larger household raises both the floor and the ceiling, so getting the count right can be the difference between qualifying and not.
What Happens If Your Income Is Below 100% FPL
Income under 100% of the poverty line generally means no Premium Tax Credit, because at that level you are expected to qualify for Medicaid instead. In states that expanded Medicaid, that hand-off works. In states that did not expand, some people earn too much for the state’s traditional Medicaid rules and too little to reach 100% FPL, leaving them in a coverage gap with no financial help for a Marketplace plan.
Lawfully present non-citizens are treated differently. They can qualify for the credit with income below 100% FPL when they are not eligible for Medicaid.7Internal Revenue Service. Eligibility for the Premium Tax Credit
Why the 400% Ceiling Matters Again in 2026
From 2021 through 2025, the American Rescue Plan Act and the Inflation Reduction Act suspended the 400% FPL upper limit. Anyone whose benchmark Silver plan premium ran over 8.5% of household income could get a credit, no matter how high the income. That provision expired on December 31, 2025.8Office of the Law Revision Counsel. 26 US Code 36B – Refundable Credit for Coverage Under a Qualified Health Plan
For 2026, the original cap is back. If your household MAGI exceeds 400% of the poverty line by a single dollar, you are ineligible for any credit, and you must repay every dollar of advance payments the Marketplace made to your insurer on your behalf.7Internal Revenue Service. Eligibility for the Premium Tax Credit This hard cutoff is often called the subsidy cliff, because a modest raise near the threshold can wipe out thousands of dollars in assistance.
One further change hits the repayment side. For 2026, there is no cap on the amount of excess advance credit you have to pay back. In 2025 and earlier, households under 400% FPL had repayment limits ranging from $375 to $3,250 depending on income and filing status. Those caps no longer exist for 2026, and every dollar of excess advance credit is repayable regardless of income.9Internal Revenue Service. Updates to Questions and Answers About the Premium Tax Credit If your income climbs during the year, reporting the change to the Marketplace promptly limits how much you owe back at tax time.10CMS. Report Life Changes When You Have Marketplace Coverage
As of early 2026, Congress has considered legislation to bring back the enhanced credits, but no extension has been enacted.
When You Meet the Income Test but Still Cannot Claim the Credit
Falling inside the income range is necessary, not sufficient. Other coverage available to you can disqualify you month by month, even if you never enroll in it.11Internal Revenue Service. Premium Tax Credit (PTC) Overview
Employer-sponsored insurance is the most common trigger. If your employer’s plan meets both an affordability test and a minimum-value test, you cannot claim the credit for months you had access to it:8Office of the Law Revision Counsel. 26 US Code 36B – Refundable Credit for Coverage Under a Qualified Health Plan
- Affordable means your share of the premium for self-only coverage is no more than 9.96% of household income for plan years beginning in 2026.12Internal Revenue Service. Rev. Proc. 2025-25
- Minimum value means the plan covers at least 60% of the total expected cost of covered benefits.13Internal Revenue Service. Minimum Value and Affordability
If the employer plan fails either test, you can decline it, buy a Marketplace plan, and claim the credit. The disqualification also applies family member by family member: if your spouse has affordable employer coverage but you do not, your spouse is out while you can still receive the credit on your own enrollment.
Eligibility for Medicare, Medicaid, CHIP, or TRICARE knocks out the same months.11Internal Revenue Service. Premium Tax Credit (PTC) Overview
A few filing rules also apply. Married taxpayers have to file jointly; married filing separately disqualifies you, with a narrow exception for victims of domestic abuse or spousal abandonment.7Internal Revenue Service. Eligibility for the Premium Tax Credit You cannot be claimed as a dependent on someone else’s return. And you need at least one month of Marketplace enrollment with at least one month’s premium paid by the tax return due date, whether through advance payments or out of pocket.