Rightmont Research · figures verified
The 2026 ACA subsidy cliff: what one dollar of income costs
For 2026 coverage, the premium tax credit does not taper away above 400% of the federal poverty level. It stops. A household of 2 people with a $15,000 benchmark premium receives a credit of $6,574 at an income of $84,600. One dollar more and it receives nothing, so that dollar costs $6,574.
Credit lost at the cliff
Each cell is the premium tax credit a household receives at exactly 400% of the poverty level, which is what it loses with one more dollar of income. “None” means the household already pays the full premium at that income, so there is no cliff to fall off.
| Household | Cliff income | $9,000 premium | $12,000 premium | $15,000 premium | $18,000 premium | $21,000 premium |
|---|---|---|---|---|---|---|
| 1 person | $62,600 | $2,765 | $5,765 | $8,765 | $11,765 | $14,765 |
| 2 people | $84,600 | $574 | $3,574 | $6,574 | $9,574 | $12,574 |
| 3 people | $106,600 | None | $1,383 | $4,383 | $7,383 | $10,383 |
| 4 people | $128,600 | None | None | $2,191 | $5,191 | $8,191 |
Method
The poverty line for each household size is the HHS guideline published in 2025, which is the one that applies to 2026 coverage. The cliff income is 400% of it. At that income the IRS table sets the expected contribution toward the benchmark plan at 9.96% of income, and the credit is the benchmark premium minus that contribution. Above the cliff the credit is zero.
2026 is the first year this cliff applies again: the enhanced subsidies that removed it expired after 2025. The same rule is the default in Rightmont’s projection engine.
Limits: benchmark premiums vary widely by state, age and plan, so the premiums here are inputs, not estimates of yours. The figures are for a single coverage year, use the guidelines for the 48 contiguous states and Washington, D.C. (Alaska and Hawaii are higher), and leave out cost-sharing reductions.
Worked through for one household
- The ACA Subsidy Cliff: 1 Person, $9k Premium
- The ACA Subsidy Cliff: 1 Person, $15k Premium
- The ACA Subsidy Cliff: 1 Person, $21k Premium
- The ACA Subsidy Cliff: 2 People, $9k Premium
- The ACA Subsidy Cliff: 2 People, $15k Premium
- The ACA Subsidy Cliff: 2 People, $21k Premium
- The ACA Subsidy Cliff: 4 People, $15k Premium
- The ACA Subsidy Cliff: 4 People, $21k Premium
Cite this
Rightmont Research, “The 2026 ACA subsidy cliff: what one dollar of income costs,” https://rightmont.com/research/aca-subsidy-cliff-2026
Sources
- U.S. Department of Health and Human Services, Annual Update of the HHS Poverty Guidelines, Federal Register 2025-01377 (governs 2026 coverage)For: Federal poverty level, household of two (the guideline the premium tax credit uses)
- Internal Revenue Service, Rev. Proc. 2025-25: 2026 applicable percentage table and required contribution percentage (section 36B)For: Highest ACA applicable percentage (expected contribution just under the 400% cliff)
Each figure above was checked against the document’s own text. How we source and correct figures: editorial policy.
For education, not financial advice. See the financial disclaimer. Households of 1, 2, 4 are also covered in the linked calculation pages.