ACA Premium Subsidy Calculator
Example: Annual household income: 45000 $ · Household size: 3 · Benchmark (second-lowest silver) monthly premium: 650 $
| Monthly subsidy | $614 |
| Your net monthly premium | $36 |
| Annual subsidy | $7,363 |
Worked example
Take a household of three earning $45,000 a year, where the benchmark silver plan costs $650 a month. That income is about 174% of the federal poverty level for three people, so the sliding scale expects the household to pay roughly 0.97% of income toward the benchmark plan, which works out to about $36 a month. The subsidy covers the rest: about $614 a month, leaving a net premium of roughly $36 a month and an annual subsidy of about $7,363. Because the credit is tied to the benchmark plan, choosing a cheaper bronze plan can push your net premium toward zero.
Frequently asked questions
What is the benchmark plan and where do I find its premium?
The benchmark is the second-lowest-cost silver plan available to your household on the marketplace. Your premium tax credit is calculated against its price, not the plan you actually choose. You can find the benchmark premium by browsing silver plans for your zip code on HealthCare.gov or your state exchange and taking the second-cheapest one.
What income should I enter?
Use your expected modified adjusted gross income for the coverage year for everyone in your tax household, not last year's number. Subsidies are reconciled on your tax return, so a good-faith estimate of this year's income is what matters. If your income changes, update your marketplace application to avoid owing money back.
Is there still a 400% poverty-level cliff?
Under the current enhanced-subsidy rules, the old hard cutoff at 400% of the federal poverty level is gone. Above that level your expected contribution is simply capped at 8.5% of income, so higher earners can still get help if the benchmark plan is expensive where they live. These enhanced rules are set by law and can change, so verify the current year.
Why is my net premium not zero even at low income?
The subsidy is pegged to the benchmark silver plan. If you pick a plan that costs more than the benchmark, you pay the difference on top of your expected contribution. Pick a plan cheaper than the benchmark and your net premium falls, sometimes to zero for a bronze plan.
Does household size include everyone in my home?
It is your tax household: you, your spouse if filing jointly, and your tax dependents. Roommates and family members you do not claim are not counted. A larger household raises the federal poverty level threshold, which generally increases your subsidy at the same income.