How is the ACA premium tax credit calculated?

The ACA subsidy equals the difference between the monthly cost of the Second Lowest Cost Silver Plan (SLCSP) in your area and your required maximum household contribution, which scales from 0% to 8.5% of your MAGI depending on your Federal Poverty Level (FPL).

What are Cost-Sharing Reductions (CSR) on Silver plans?

CSRs are additional subsidies for households making between 100% and 250% of the FPL that lower deductibles, copayments, and out-of-pocket maximums exclusively on Silver-tier marketplace plans.

ACA Premium Tax Credit & Subsidy Calculator

Income Range (% FPL)	Actuarial Value (AV)	Typical Individual Deductible	Primary Doctor Copay
100% – 150% FPL	94% AV (Better than Platinum)	$0 – $200	$0 – $5
150% – 200% FPL	87% AV (Gold / Platinum level)	$500 – $1,000	$10 – $15
200% – 250% FPL	73% AV (Slight boost over standard)	$2,500 – $3,500	$25 – $35
Over 250% FPL	70% AV (Standard Silver Baseline)	$5,000 – $6,500	$40 – $55

Income Range (% FPL)

Actuarial Value (AV)

Typical Individual Deductible

Primary Doctor Copay

100% – 150% FPL

94% AV (Better than Platinum)

$0 – $200

$0 – $5

150% – 200% FPL

87% AV (Gold / Platinum level)

$500 – $1,000

$10 – $15

200% – 250% FPL

73% AV (Slight boost over standard)

$2,500 – $3,500

$25 – $35

Over 250% FPL

70% AV (Standard Silver Baseline)

$5,000 – $6,500

$40 – $55

How ACA Health Insurance Subsidies Are Calculated

The Affordable Care Act (ACA) provides financial assistance through Advance Premium Tax Credits (APTC) to lower monthly health insurance premiums for eligible individuals and families purchasing coverage through HealthCare.gov or state-based marketplaces.

1. The Second Lowest Cost Silver Plan (SLCSP) Benchmark

Your subsidy is not calculated based on whatever plan you happen to choose. Instead, the government calculates your tax credit based on the cost of the Second Lowest Cost Silver Plan (SLCSP) in your geographic rating area. The tax credit equals the difference between the benchmark Silver plan price and your maximum statutory household contribution.

2. The 8.5% Enhanced Subsidy Cap

Under enhanced federal subsidy rules, no household is required to pay more than 8.5% of their Modified Adjusted Gross Income (MAGI) for the benchmark Silver plan, eliminating the old "subsidy cliff" that previously cut off tax credits abruptly at 400% FPL.

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Frequently Asked Questions

Can I use my tax credit to buy a Bronze or Gold plan instead?

Yes! Your monthly tax credit amount can be applied toward any Bronze, Silver, Gold, or Platinum plan on the marketplace. Applying your subsidy to a Bronze plan frequently results in a $0 monthly premium.

Are my household income or tax inputs stored anywhere?

Never. All calculations execute 100% locally in your device's browser memory (RAM).