Monthly Subsidy
$375
Annual Subsidy
$4,500
Your Max Monthly Cost
$225
What is the ACA premium tax credit?
The ACA (Affordable Care Act) premium tax credit is a refundable tax credit that helps eligible individuals and families afford health insurance purchased through the Health Insurance Marketplace (healthcare.gov). The credit is based on your income relative to the Federal Poverty Level (FPL) and reduces your monthly insurance premium.
How is the ACA subsidy calculated?
The subsidy is calculated based on the difference between the cost of the second-lowest-cost Silver plan (benchmark plan) in your area and your expected contribution. Your expected contribution is a percentage of your household income that increases as your income rises. The government pays the difference directly to your insurer.
What is 400% of the Federal Poverty Level?
For 2025, 400% FPL is approximately $62,600 for a single person, $84,640 for a family of 2, $106,680 for a family of 3, and $128,720 for a family of 4. Under enhanced ACA subsidies (extended through 2025), people above 400% FPL can still receive subsidies so their premiums don't exceed 8.5% of income.
Am I eligible for Medicaid instead?
In states that expanded Medicaid, you may qualify if your income is at or below 138% of FPL (about $21,597 for a single person in 2025). If you qualify for Medicaid, you are not eligible for Marketplace subsidies. Check your state's Medicaid expansion status, as some states have not expanded coverage.
Note: This calculator provides estimates based on 2025 FPL guidelines and enhanced ACA subsidies. Actual subsidy amounts depend on your local benchmark plan costs. Visit healthcare.gov for exact figures.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.