2026 returns to the general 100%–400% FPL eligibility range

For tax years 2021 through 2025, temporary law removed the usual upper income cutoff and enhanced the applicable-percentage table. For 2026, general eligibility again requires household income of at least 100% and no more than 400% of the federal poverty line for the tax family, subject to specific exceptions and all other eligibility rules.

The percentage is based on the federal poverty guideline for the year before the coverage year. The 2026 Marketplace credit therefore uses the 2025 guideline: $15,650 for one person in the contiguous states and District of Columbia, plus $5,500 for each additional family member. Alaska and Hawaii have separate higher amounts.

A household just above 400% of FPL can lose the general credit under the restored rule. Because a small income change can create a large reconciliation difference, taxpayers near the boundary should update the Marketplace after bonuses, business income, capital gains, Roth conversions, marriage, divorce, or dependent changes.

How the six-step applicable percentage table works

The applicable percentage converts annual household income into the amount the household is expected to contribute toward benchmark coverage. For 2026, income below 133% FPL uses 2.10%. From 133% to 150%, the percentage rises from 3.14% to 4.19%. From 150% to 200%, it rises from 4.19% to 6.60%.

The next ranges move from 6.60% to 8.44% between 200% and 250% FPL, and from 8.44% to 9.96% between 250% and 300% FPL. From 300% through 400%, the percentage remains 9.96%. Within a range, the calculator interpolates proportionally.

The official Form 8962 uses a table and prescribed rounding for the FPL percentage and applicable figure. A continuous planning result can differ by a few dollars. Monthly calculations are required when policy, benchmark, family, or eligibility information changes during the year.

Enrollment premium and SLCSP benchmark serve different roles

A missing or incorrect column B can require the Marketplace tax tool. Do not substitute the selected plan’s premium for the benchmark merely because both appear on the same statement.

Household income includes more than Form 1040 AGI

PTC household income generally combines the taxpayer’s modified adjusted gross income with the MAGI of each tax-family member required to file a federal return. The modification adds excluded foreign earned income, tax-exempt interest, and nontaxable Social Security benefits, including specified railroad retirement benefits. Supplemental Security Income is not included.

A dependent’s earnings are included only when that person is required to file, not simply because the person had a summer job. Married taxpayers generally must file jointly, with limited exceptions for certain victims of domestic abuse or spousal abandonment. A person claimable as another taxpayer’s dependent is not an applicable taxpayer for this credit.

Marketplace estimates use expected income during enrollment, while Form 8962 uses final tax-year household income. Report changes promptly to reduce excess advance credit or missed assistance.

Other coverage can block the credit for a month

Marketplace enrollment alone does not guarantee PTC. A family member generally cannot receive the credit for a month when eligible for affordable employer-sponsored minimum essential coverage that provides minimum value, Medicare, Medicaid, CHIP, or another qualifying government program, subject to detailed rules.

For 2026, the employer-coverage required contribution percentage is 9.96%. Affordability for an employee generally looks at the employee cost of the lowest-cost self-only minimum-value option, while family-member affordability uses the relevant family coverage cost under post-2022 rules. Eligibility and waiting periods need month-by-month analysis.

The calculator uses a conservative yes/no screen. Selecting other affordable coverage sets the annual estimate to zero, but real families can have mixed monthly eligibility and different members. Use Form 8962 and Publication 974 for allocation.

Reconciliation can increase a refund or create repayment

If allowed PTC exceeds advance payments, the difference generally increases the refundable credit on the return. If advance payments exceed allowed PTC, Form 8962 calculates excess APTC. Statutory repayment limitations can cap the amount for some households below specified income levels, but exceptions and filing status matter.

This calculator deliberately reports the full excess before any repayment cap. A cap is not the same as the allowed credit and should not be assumed without the official 2026 table and return facts. Households above 400% FPL can face particularly significant reconciliation because general 2026 eligibility ends.

Anyone receiving APTC must file a tax return with Form 8962 even if filing would otherwise not be required. Failure to reconcile can affect future advance-credit eligibility.

Example: family of four at about 187% FPL

A contiguous-state family of four has 2026 household income of $60,000. The 2025 guideline used for 2026 coverage is $32,150, putting the household at approximately 186.6% FPL. Interpolation within the 150%–200% band produces an applicable percentage near 5.96%.

The expected annual contribution is roughly $3,573. With an $18,000 SLCSP benchmark, maximum assistance is about $14,427. Because the enrolled plan costs $16,800, the benchmark difference is the smaller figure and becomes the estimated credit.

If $13,500 of APTC was paid, the calculator’s annualized calculation estimates about $927 of additional credit. Official Form 8962 applies its prescribed monthly and rounding steps. If final income rises above 400% FPL, the general credit can fall to zero and advance payments can become excess before repayment-cap analysis.

Test income changes before choosing an advance amount

Self-employment profit, a year-end bonus, capital gain, Roth conversion, unemployment compensation, and changes in a dependent’s filing requirement can move final household income away from the Marketplace estimate. The effect is not limited to adding a few dollars of expected contribution. Income can move the household into another applicable-percentage segment or beyond the general 400% FPL ceiling for 2026.

Run at least a base, lower, and higher income case. If the higher case creates a large excess advance payment, consider updating the Marketplace application or taking less of the credit in advance. Taking less APTC does not reduce the final PTC allowed on Form 8962; an eligible unused amount can be claimed on the return. The tradeoff is paying more premium during the year.

For uneven income, revisit the estimate after major events rather than dividing annual income by twelve. Marriage, divorce, birth, adoption, a household member gaining Medicare, or an employer coverage offer can also change the tax family or eligible months. Save each Marketplace determination and the effective date of reported changes so the annual Form 1095-A can be checked against what actually happened.

Documents and facts to reconcile before filing

• Check every Form 1095-A. Correct policy months, household members, premiums, SLCSP, and APTC with the Marketplace before filing.
• Build tax-family MAGI. Include required-filing dependents and the statutory add-backs, not only the Marketplace application estimate.
• Review other coverage monthly. Employer offers, Medicare, Medicaid, CHIP, and changes in affordability can split the year.
• Use allocation rules. Divorce, shared policies, marriage, and members claimed on different returns may require Part IV or alternative calculations.

Questions Marketplace households ask

References

2026 applicable percentages and affordability percentage: IRS Revenue Procedure 2025-25 in IRB 2025-32. Eligibility and household-income guidance: IRS Premium Tax Credit Questions and Answers. Official reconciliation form: IRS Form 8962.