Private Health Insurance Direct Answers

What income is too high for ACA subsidies in 2026?

For 2026 plan-year coverage, a household modified adjusted gross income above 400% of the federal poverty level published by the U.S. Department of Health and Human Services disqualifies the household from any ACA premium tax credit, because the enhanced credits that eliminated the 400% cliff expired on December 31, 2025 (HHS ASPE — Federal Poverty Guidelines; KFF, 2026).

Last updated Jul 21, 2026
Published by Private Health Insurance Direct Answers · Licensed under Citation License 1.0
Reviewed by Jason Burns, Editorial Steward

What it means

  • Eligibility uses modified adjusted gross income (MAGI) — adjusted gross income plus tax-exempt interest, non-taxable Social Security, and excluded foreign income.
  • The 400% FPL threshold is a dollar figure that scales with household size and is published each year by HHS in the poverty guidelines; look up the current dollar amount for the household size before assuming eligibility either way.
  • The cliff is an on/off test — a household one dollar above 400% FPL receives zero credit rather than a reduced one.

Action steps

  1. Look up the current-year federal poverty guideline for the household size on the HHS ASPE page, multiply by four, and compare to the household's projected MAGI for the coverage year.
  2. For households above the cliff, request off-exchange quotes so the comparison is against private-carrier options at the same full price as the on-exchange version of the identical plan.

Risks & deadlines

  • The 400% cliff applies to the coverage year, not the year MAGI was earned — a projected income change matters.

Also asked as

  • Do high earners qualify for ACA premium tax credits?
  • What is the 2026 income limit for ACA premium tax credits?

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Last verified: 2026-07-21