ACA Subsidy / Premium Tax Credit
A federal tax credit that lowers what you pay for health insurance purchased through the ACA Marketplace. The credit is calculated based on your household income relative to the Federal Poverty Level.
Available to households earning between 100% and 400% FPL (income cap was temporarily lifted through 2025 under the Inflation Reduction Act).
Can be claimed in advance (applied directly to your monthly premium) or as a lump sum at tax time.
Cost-Sharing Reductions (CSRs) further reduce deductibles and copays for those earning under 250% FPL.
→ If your income changes mid-year, update your Marketplace application immediately to avoid an overpayment.
Also known as
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Frequently asked questions about ACA Subsidy / Premium Tax Credit
What is ACA Subsidy / Premium Tax Credit?+
A federal tax credit that lowers what you pay for health insurance purchased through the ACA Marketplace. The credit is calculated based on your household income relative to the Federal Poverty Level. Available to households earning between 100% and 400% FPL (income cap was temporarily lifted through 2025 under the Inflation Reduction Act).
Who qualifies for ACA Subsidy / Premium Tax Credit?+
Anyone without affordable job-based coverage, Medicaid, or Medicare can shop the Marketplace. Subsidies depend on household income.
How do I apply for ACA Subsidy / Premium Tax Credit?+
Apply during Open Enrollment (Nov–Jan) or after a qualifying life event at healthcare.gov, or through your state's Marketplace.
Where can I get help?+
Compare plans and check subsidies at healthcare.gov, or call a free local Navigator listed there. BenefitKarma's free Benefit Eligibility Screener can also tell you if you qualify for Medicaid instead.