What Are the ACA (Obamacare) Income Limits for Subsidies in 2026?

The Affordable Care Act (ACA) is the 2010 comprehensive health law known as Obamacare. Health insurance through an ACA marketplace can help protect you from a financial setback if you have an injury or illness. ACA plans also provide a safety net for people who do not have access to job-based insurance or government-funded insurance, such as Medicaid and Medicare.

Some people with ACA plans qualify for financial help that makes having coverage more accessible. One type of assistance is a premium tax credit, or premium subsidy, which is based on your household size and income. If you qualify, this will help you save on the monthly cost of your health insurance plan.

Starting in 2021, enhanced premium tax credits significantly lowered premiums and expanded the population eligible for savings. In 2025, that meant more than 90% of ACA enrollees — about 22 million people — received additional savings on the cost of plans. These enhanced subsidies were eliminated for the 2026 coverage year. As a result, many people now have much higher premiums.

What is the income range to qualify for savings on an ACA (Obamacare) plan?

Obamacare income guidelines determine whether you qualify for savings on your ACA plan. Individuals and families earning 100% to 400% of the federal poverty level (FPL) generally qualify for a premium subsidy.

The ACA relies on your modified adjusted gross income (MAGI) and your adjusted gross income (AGI), which appears on your tax return, to reach certain conclusions about your earnings. Often, your MAGI and AGI are the same number or very close. The ACA uses  your MAGI to determine potential savings. But you will start with the AGI on your most recent tax return to calculate your estimated household income for the year in which you want health insurance coverage.

A snapshot of the qualifying range for ACA income limits for premium tax credits is shown in the chart below.

Potential ACA coverage gap

If your income is below 100% of the FPL and you live in a state that hasn’t expanded Medicaid, you are likely not eligible for savings on an ACA plan or for Medicaid solely based on income. But you may qualify for Medicaid based on disability, age, or certain conditions. You could enroll in the lowest-cost ACA plan available to you, if you can afford to do so, or explore free or low-cost health insurance.

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How do you estimate your income for ACA savings?

As mentioned earlier, your MAGI is different from your AGI. Your AGI appears on your tax return — specifically, on line 11 of IRS Form 1040. Your MAGI is an estimate of your expected earnings in the coverage year.

The ACA counts the estimated income of all your household members, including your spouse and tax dependents — even if they don’t need health coverage. To calculate your MAGI, start with your AGI from your most recent tax return and then add any of the following from that year:

• Untaxed or tax-exempt foreign income

• Nontaxable Social Security benefits

• Tax-exempt interest

Then, add information related about any of these expected changes in income or life circumstances that apply:

• Anticipated raises

• Income generated by new work or other employment changes, including self-employment income

• Changes to other income, such as Social Security income and investments

• Household member changes, such as a different number of dependents

Alimony is added to your MAGI estimate only if the separation or divorce was finalized before January 1, 2019. You don’t include Supplemental Security Income (SSI) in your MAGI estimate. 

As mentioned, you will also need to report the income of any other people in your household, particularly if they filed their taxes separately.

What kind of income can you include in your estimate?

Here’s a chart with the types of income you should and should not include in your estimate.

What do ACA plans cover and why?

The ACA marketplace aims to make healthcare coverage more accessible in several ways:

• Households with incomes from 100% to 400% of the FPL receive subsidies that reduce their health insurance costs.

• Consumers receive preventive care services without out-of-pocket costs, including without meeting their health plan deductible.

• Consumers who have preexisting health conditions can receive coverage.

• Young adults can remain on their parents' health insurance plans until at least age 26.

ACA health insurance plans also cover these 10 essential health benefits:

1. Emergency services

2. Hospitalization (for surgeries and inpatient care)

3. Laboratory services

4. Mental health and substance use disorder services (including behavioral health treatment such as counseling and psychotherapy)

5. Outpatient care

6. Pediatric services (including oral and vision care)

7. Pregnancy, maternity, and newborn services (including prenatal, childbirth, and postnatal care)

8. Prescription medications

9. Preventive care, wellness services, and chronic disease management

10. Rehabilitative and habilitative services and devices to help people with an injury, disability, or chronic condition gain or recover skills

How does your plan affect what you pay for coverage?

The ACA provides savings on healthcare insurance for low-income and moderate-income individuals and families. Generally, the less money you make, the more financial help you will receive under the law.  

As mentioned, individuals and families earning 100% to 400% of the federal poverty level generally qualify for savings on monthly premiums. But what you pay each month also depends on the plan you select. 

ACA plans are organized into metal tiers: bronze, silver, gold, and platinum. Bronze plans have the lowest monthly premiums but the highest out-of-pocket costs when you receive care. Platinum plans have the highest monthly costs but the lowest expenses when you access care.

Silver plans offer moderate premiums and moderate charges for deductibles, copays, and coinsurance. Silver plans are the most popular type of ACA marketplace plan. If you qualify for “extra savings” that reduce out-of-pocket costs, like deductibles, copays, and coinsurance, you must enroll in a silver plan to take advantage.

How to enroll in an ACA plan

There are several ways to sign up for ACA coverage:

• Enroll online.

• Use HealthCare.gov’s “find local help” tool to locate in-person assistance in your area. You can find a navigator or a health insurance agent or broker to walk you through the marketplace process at no charge.

• Apply through the website of a certified enrollment partner, such as a private health insurance company.

• Enroll over the phone by calling the marketplace call center at 1-800-318-2596. The marketplace call center is open 24 hours a day, 7 days a week — excluding holidays — and offers services in English and other languages.

• Complete and mail in an application.

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Written by:

Tamara E. Holmes

Tamara E. Holmes is a Washington, DC-based freelance journalist and content strategist who has been writing about personal finance, health, and health insurance for more than a decade. Her work has appeared in various print and online publications, such as USA Today, AARP, Working Mother, and Diversity Woman.

Edited by:

Cindy George, MPH

Cindy George, MPH, is the senior personal finance editor at GoodRx. She is an endlessly curious health journalist and digital storyteller.

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