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.
Your Subsidy Is Fixed to the Benchmark Plan, Not to the Plan You Pick
The most common misreading of a subsidy estimate is treating it as a percentage discount. It is not. Your premium tax credit is a fixed dollar amount, calculated from the second-lowest-cost Silver plan available in your own rating area — the benchmark plan — minus your expected contribution. That dollar amount then applies to whichever plan you actually buy. Choose a cheaper Bronze plan and the credit does not shrink; it covers more of the premium, sometimes all of it. Choose Gold and you pay the whole difference yourself. This is also why two households with identical incomes in neighbouring counties get very different credits: the benchmark premium is local, so the subsidy is local. One exception is worth real money and is easy to miss: cost-sharing reductions, which cut your deductible, copays and out-of-pocket maximum for lower-income enrollees, are only available on Silver plans. An eligible household that moves to Bronze to cut the monthly premium keeps the tax credit but forfeits the cost-sharing help entirely, and often pays far more across the year at the point of care. Compare total expected cost — premium plus likely out-of-pocket — not premium alone. Benchmark and cost-sharing rules are explained at HealthCare.gov.
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.