Personal Finance
Health Insurance Subsidy Calculator
Marketplace premiums are capped as a share of income. See whether you qualify for a subsidy, and how much.
ACA premium subsidies (premium tax credits) cap marketplace insurance costs at a percentage of income, from 0% for very low incomes up to 8.5% of income for those between 100% and 400% of the poverty level. Figures are estimates before taxes and fees — verify details with a licensed advisor where needed.
Caps premiums at 0–8.5% of income.
Based on projected household income.
Must buy via the Marketplace.
Calculate Your Health Insurance Subsidy
Max Monthly Premium
What Is Health Insurance Subsidy?
Under the Affordable Care Act, premium tax credits cap what marketplace plan holders pay, as a percentage of household income, when income is 100–400% of the federal poverty level.
The enhanced subsidies (0–8.5% glide path) were extended through 2025 in the Inflation Reduction Act. Households below 150% FPL can pay near-zero premiums.
How It Is Calculated
Premium cap = 0% (≤150% FPL) → 8.5% (≥400% FPL), sliding between
Example: Example: $45k household of 2 (≈228% FPL) → premium capped ≈ 4.1% of income ≈ $154/month
Premium cap glide path
| Income (% FPL) | Cap (% of income) |
|---|---|
| ≤ 150% | 0% |
| 200% | 3.3% |
| 300% | 5.9% |
| ≥ 400% | 8.5% |
Limitations
- Subsidy math depends on the second-lowest-cost Silver plan in your area.
- Income changes mid-year change the credit, report them.
- State marketplaces may add further assistance.
Sources & Review
References used for this calculator’s formulas and thresholds:
Health Insurance Subsidy FAQ
Who qualifies for ACA subsidies?
Households 100–400% of FPL buying marketplace coverage (higher incomes capped at 8.5% under current law).
How is the subsidy calculated?
It fills the gap between the benchmark Silver plan's cost and your capped share of income.
What if my income changes mid-year?
The credit is reconciled on your tax return — report changes promptly to avoid owing money in April.
Can I get a subsidy with employer insurance?
Only if the employer plan is unaffordable (>8.39% of income) or substandard.
Please read this first: these results are educational estimates. For real decisions, talk to a qualified professional.