One dollar over the line can cost you $8,000 in health-insurance subsidies. Check your cliff — and how to stay under it.
Free 2026 calculator + the legal strategies, in plain English.
The cliff is back for 2026
The enhanced premium tax credits that softened the cliff from 2021–2025 expired December 31, 2025. For 2026, the old rule returns: earn more than 400% of the federal poverty level and your premium subsidy drops to zero — no phase-out, no cushion. For a household of two that line is about $84,600; for a single person about $62,600.
KFF and the news explain the problem. This site answers the two questions they don’t: am I over it, and what do I legally do about it?
How it works
Answer four questions — state, household size, expected 2026 income, and whether you’re self-employed or an early retiree. We compute your income as a percentage of the poverty line, plot it on the cliff meter, estimate the subsidy at stake, and show the specific moves — HSA, retirement contributions, ICHRA, withdrawal timing — that can pull you back under 400%.
Frequently asked
What is the ACA subsidy cliff?
It is the point — 400% of the federal poverty level — where your premium tax credit drops to $0. For 2026 there is no phase-out: one dollar over the line and the whole subsidy is gone.
What is the 2026 income limit for ACA subsidies?
About $62,600 for a single person and $84,600 for a household of two (400% of the 2025 poverty guidelines, used for 2026 coverage). Above that, no premium tax credit.
Why did the subsidy cliff come back?
The enhanced premium tax credits from the American Rescue Plan and Inflation Reduction Act expired December 31, 2025, and were not extended. That restored the original 400% cliff for 2026.
Can I legally lower my income to stay under the cliff?
Yes. Deductible retirement contributions, HSA contributions, and timing of withdrawals or Roth conversions all lower your MAGI. The calculator shows which moves fit your situation.
Talk to a licensed broker about your options
Free, no obligation. A broker can price your 2026 plans and the strategy moves for your exact situation.
Talk to a licensed broker about your options →