ACA Marketplace Subsidy Calculator 2027
ACA premium tax credits cap your healthcare premium based on income. With Inflation Reduction Act extensions through 2027, the 'subsidy cliff' is gone — no income upper limit, premiums capped at 8.5% of household income. This tool computes your subsidy.
How Premium Tax Credits Work
ACA premium tax credit (PTC) caps your share of benchmark (2nd-lowest Silver) plan premium at a percentage of income based on % of Federal Poverty Level (FPL): 0% premium at <150% FPL, sliding up to 8.5% at 400%+ FPL. Difference between benchmark cost and your capped share is the subsidy.
Inflation Reduction Act Extension
Originally subsidies ended at 400% FPL ('subsidy cliff'). American Rescue Plan + Inflation Reduction Act extended through 2027: no cliff, premium capped at 8.5% income for all income levels. After 2027, cliff returns unless extended again. Higher-income families benefit most from the extension.
Choosing the Right Plan Tier
Bronze: lowest premium, highest deductible. Silver: mid-range; subsidies tied to Silver tier — best value if subsidized. Gold/Platinum: higher premium, lower out-of-pocket. Strategy: if eligible for cost-sharing reduction (CSR) at 100-250% FPL, Silver becomes Gold-equivalent at Silver price — choose Silver. Above 250% FPL, compare Bronze vs Silver total cost.
Source: Healthcare.gov, IRC §36B, IRS Pub 974 (Premium Tax Credit). Last updated: May 2026.