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Early-retirement ACA subsidy estimator (2026 plan year)
ACA subsidy estimator — 2026 plan year, based on federal law in effect as of July 2026. Estimate only — verify your actual subsidy at HealthCare.gov.
Pending legislation — read before deciding
Congress is debating restoring the enhanced subsidies. The U.S. House passed a 3-year extension on January 8, 2026; the Senate has not acted. If enacted (possibly retroactive to 2026), the 400% cliff shown here could be removed and premiums re-capped at 8.5% of income. Re-check before making decisions.
If you plan to retire before 65, your health-insurance cost hinges on one number you can actually control: your MAGI. This estimator shows where your income lands against the 2026 federal poverty level, your expected premium contribution, and — the number that matters most for this audience — exactly how far you are from the 400% subsidy cliff. It runs both the current-law and the (pending) restored-credits scenarios side by side.
Estimate your 2026 ACA subsidy
Enter your state's Medicaid status, household size, estimated 2026 MAGI, and the age of the oldest person enrolling. Optionally add your local benchmark (SLCSP) premium for a dollar estimate. Everything computes in your browser — your numbers never leave your device.
41 states plus DC expanded Medicaid; the rest have a coverage gap below 100% FPL. Unsure? Check your state.
Everyone on your tax return — you, a spouse, and dependents.
Premiums (and therefore the benchmark) rise sharply with age up to 64, then Medicare takes over at 65. This is why an accurate SLCSP for your own age matters.
Everything is computed in your browser. Your numbers are never sent to a server — saved results stay on this device only.
Distance to the 2026 subsidy cliff
Your MAGI is $4,600 below the $84,600 cliff (household of 2).
Current law (2026)
400% cliff · 2.10–9.96% of MAGI
Estimated to qualify for a premium tax credit
Your MAGI is 378% of the federal poverty level for your household.
Expected contribution toward the benchmark plan
9.96% of MAGI ≈ $7,968/yr
≈ $664/mo — the most you'd pay for the second-lowest-cost silver (benchmark) plan.
Dollar subsidy: unavailable without your local benchmark
Enter your area's SLCSP (second-lowest-cost silver plan) monthly premium on the left to estimate the dollar credit. We never invent a benchmark premium.
Educational estimate only — not tax or financial advice. Verify at HealthCare.gov.
If enhanced credits are restored
Hypothetical · pendingNo cliff · benchmark capped at 8.5% of MAGI · no upper income limit
Estimated to qualify for a premium tax credit
Your MAGI is 378% of the federal poverty level for your household.
Expected contribution toward the benchmark plan
8.5% of MAGI ≈ $6,800/yr
≈ $567/mo — the most you'd pay for the second-lowest-cost silver (benchmark) plan.
Dollar subsidy: unavailable without your local benchmark
Enter your area's SLCSP (second-lowest-cost silver plan) monthly premium on the left to estimate the dollar credit. We never invent a benchmark premium.
Educational estimate only — not tax or financial advice. Verify at HealthCare.gov.
Plan the income that drives your subsidy
Your ACA subsidy is set entirely by your MAGI — the income and withdrawals you take before Medicare. FIManager doesn't compute ACA subsidies, but it helps you build your FI plan and project your income and withdrawals year by year: the numbers that determine your MAGI, and with it your subsidy. Free, no card.
Build your FI plan free →How the 2026 subsidy math works
Your premium tax credit is the gap between a benchmark plan and what the ACA expects you to pay:
annual credit = max(0, SLCSP×12 − expected contribution)
The applicable percentage rises with income across the bands below (2026 figures, IRS Rev. Proc. 2025-25), interpolated linearly inside each band. Above 400% FPL, current law gives no credit at all.
| Income (% of federal poverty level) | Expected contribution (% of MAGI) |
|---|---|
| Under 133% | 2.10% (flat) |
| 133% – 150% | 3.14% → 4.19% |
| 150% – 200% | 4.19% → 6.60% |
| 200% – 250% | 6.60% → 8.44% |
| 250% – 300% | 8.44% → 9.96% |
| 300% – 400% | 9.96% (flat) |
| Over 400% | No credit — the subsidy cliff |
2025 poverty level and the 400% cliff (2026 coverage)
The ACA uses the prior year's HHS poverty guidelines, so 2026 eligibility is set by the 2025 figures below (48 contiguous states + DC). Add $5,500 per additional person.
| Household size | 2025 FPL | 400% FPL (the cliff) |
|---|---|---|
| 1 | $15,650 | $62,600 |
| 2 | $21,150 | $84,600 |
| 3 | $26,650 | $106,600 |
| 4 | $32,150 | $128,600 |
Alaska and Hawaii use separate, higher poverty guidelines — this tool is scoped to the 48 contiguous states + DC and does not estimate AK/HI.
Worked example: a couple retiring at 55
Household of 2 · expansion state · estimated 2026 MAGI $80,000 · SLCSP $1,400/mo.
- % of poverty level: $80,000 ÷ $21,150 ≈ 378% — in the 300–400% band, so the applicable percentage is 9.96%.
- Expected contribution: 9.96% × $80,000 ≈ $7,968/yr (~$664/mo).
- Estimated credit: max(0, $1,400×12 − $7,968) = $8,832/yr (~$736/mo).
- Cliff distance: $80,000 is $4,600 below the $84,600 cliff. Realizing much more income (a large Roth conversion, say) could push them over and forfeit the credit entirely under current law.
Change any input in the calculator above to see your own numbers, including the restored-credits scenario.
Sources & data vintage
- 2026 applicable percentages — IRS Rev. Proc. 2025-25 (PDF).
- 2025 poverty guidelines (used for 2026 coverage) — HHS / ASPE Poverty Guidelines.
- Benchmark plan (SLCSP) — HealthCare.gov: second-lowest-cost silver plan.
Data vintage: 2025 HHS poverty guidelines applied to the 2026 ACA coverage year; 2026 applicable percentages from IRS Rev. Proc. 2025-25. Scope: 48 contiguous states + DC. Last verified: 2026-07-07.
FAQ
- What is the ACA subsidy cliff in 2026?
- For the 2026 plan year, income above 400% of the federal poverty level gets no premium tax credit — the subsidy cliff is back. For a household of two, 400% FPL is $84,600 of MAGI; one dollar over and, under current law, you pay the full benchmark premium yourself. That is exactly why early retirees manage MAGI to stay at or under the cliff.
- How do early retirees qualify for ACA subsidies?
- Premium tax credits are based on your modified adjusted gross income (MAGI), not your net worth, so retirees living partly off savings can have a low MAGI and qualify. The levers are the timing of Roth conversions, capital-gains realization, HSA and pre-tax contributions, and which accounts you draw from. Keeping MAGI between 100% and 400% FPL (in current law) is the sweet spot.
- What is the second-lowest-cost silver plan (SLCSP)?
- The SLCSP is the benchmark plan the ACA uses to size your premium tax credit. Your credit equals the SLCSP premium minus your expected contribution (a percentage of MAGI), floored at zero. The benchmark depends on your county and the ages enrolling, so it is local — this tool never invents one. Enter your own SLCSP from HealthCare.gov to see a dollar estimate.
- Will the enhanced ACA subsidies be restored for 2026?
- It is undecided. The U.S. House passed a 3-year extension on January 8, 2026; the Senate has not acted. If enacted (possibly retroactive to 2026), the 400% cliff would be removed and the benchmark re-capped at 8.5% of income. This tool shows both scenarios side by side, but the restored case is clearly marked hypothetical — re-check before making decisions.
- Does this calculator cover Alaska and Hawaii?
- No. This version is scoped to the 48 contiguous states plus DC, which share one federal poverty guideline table. Alaska and Hawaii use separate, higher poverty guidelines, so their FPL thresholds and cliff amounts differ. We do not fabricate AK/HI numbers — check HealthCare.gov for those states.
- Is this tax or financial advice?
- No. This is an educational estimate based on the figures you enter and published 2026 rules, not personalized tax, legal, or financial advice. Actual eligibility and credits are determined by the marketplace when you apply. Always verify your real subsidy at HealthCare.gov and consult a professional for your situation.
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