How ACA Subsidies Work and How Much You Can Get

An ACA subsidy is called a premium tax credit. It lowers how much you pay each month for a health insurance plan you buy through the marketplace, the place most people know as HealthCare.gov or their state's version of it.

Think of it as a discount on your monthly bill. Instead of paying full price for your plan, the government covers part of the cost. You pay the rest.

One thing to know up front: the credit only works with marketplace plans. It does not apply to insurance you get through a job, and it does not apply to plans you buy outside the marketplace.

How much can you get?

The amount you get depends on three things:

• Your household income. This is the money your household expects to earn for the year.
• Your household size. This means you, your spouse if you file taxes together, and anyone you claim as a dependent.
• The cost of plans where you live. Prices change from one area to the next.

People with lower incomes get larger credits. People with higher incomes get smaller ones.

Your credit is figured using one specific plan as the measuring stick: the second-lowest-cost silver plan in your area. The government calls this the benchmark plan. It decides how much you're expected to pay based on your income, then the credit covers the gap between that amount and the cost of the benchmark plan.

You don't have to buy the benchmark plan. It's just the math used to set your credit. You can apply that credit to any marketplace plan you pick.

What changed in 2026

From 2021 through 2025, a set of enhanced subsidies made these credits bigger and opened them up to more people. Those enhanced subsidies expired at the end of 2025, and Congress did not extend them.

So in 2026, the rules went back to the way they were before 2021. Two things changed.

1. The credits are smaller. They cover less of your premium than they did the past few years. The Kaiser Family Foundation estimates that the average enrollee's premium payment will go up about 114 percent, or roughly $1,016 a year.
2. There's an income cap again. In 2026, you can qualify with a household income between 100 percent and 400 percent of the federal poverty level. In most states, that upper limit works out to $62,600 for one person and $128,600 for a family of four. Earn more than that, and you no longer qualify for a credit.

This is the part that catches people off guard. Some folks who got help in past years may not qualify in 2026. If that might be you, check your numbers carefully before you enroll.

We're not telling you this to worry you. We're telling you because it's better to know now than to find out after you've picked a plan.

You can use the credit every month

Here's something that helps with the monthly budget. You don't have to wait until tax time to get your credit.

You can apply it straight to your monthly premium. The credit goes to your insurance company, and you pay the smaller amount each month. The government calls this the advance premium tax credit.

One thing to keep in mind. The credit is based on the income you expect to earn this year. If you end up earning more than you guessed, you may have to pay some of it back when you file your taxes. So give the most accurate income number you can.

Frequently asked questions

What is the second-lowest-cost silver plan?

It's the benchmark the government uses to figure your credit. Marketplace plans come in tiers, and silver is the middle one. The second-cheapest silver plan in your area sets the number your credit is built around. You can still pick a different plan to actually enroll in.

Do I still qualify if I qualified last year?

Maybe. The 2026 rules brought back the income cap at 400 percent of the federal poverty level. If your income is above that line, you won't qualify for a credit this year, even if you did before. Check your expected income against the limit for your household size.

What income should I report?

Report the income you expect to earn for the full year, for everyone in your household. Your credit is based on that estimate. If your income changes during the year, update your marketplace account so your credit stays accurate.

What happens if my income goes up during the year?

If you earn more than you estimated, you may have to repay part of the credit when you file taxes. Updating your income with the marketplace as soon as it changes keeps that repayment smaller.

Your next step

You already know you qualify for help. The next thing to do is see the full picture. Run Turnout's free benefits scan to find out exactly what you may be eligible for, including how big your credit could be. Once you can see the whole picture, we can help you weigh your plan options and enroll.

That's the step. Take it today.