ACA subsidy cliff calculator
Retire before 65 and your health cover price depends on the income you choose to show. Here's your 2026 or 2027 credit, where it ends, and how much room you have before it does.
Showing $50,000 (313.3% of the poverty line), your yearly premium tax credit for 2027 cover is
$10,804
The credit stops above $63,840. You have $13,840 of income headroom below the cliff; one dollar past it loses $9,390 of credit.
Open enrollment for 2027 cover had to begin no later than November 1, 2026 (45 CFR 155.410). Check healthcare.gov for the dates for your state.
For 2027 cover this uses the IRS's 2027 table and the 2026 poverty line, with the credit ending above 400% of the poverty line, as the law stands for 2027. KFF has not published a 2027 benchmark premium for a 60-year-old, so enter your own below; until you do, the premium is KFF's 2026 figure.
- You are expected to pay
- $5,110
- 10.22% of income, toward the benchmark plan.
- Benchmark plan after the credit
- $5,110
- About $426 a month, from $15,914 (KFF's 2026 figure, not a 2027 one).
- Poverty line for 1
- $15,960
- The 2026 guideline, which sets 2027 credits.
Your credit at each step of the 2027 table, for a household of 1 and a $15,914 benchmark premium.
| Poverty line | Income | Share | Credit |
|---|---|---|---|
| 100% | $15,960 | 2.15% | $15,571 |
| 133% | $21,227 | 3.23% | $15,228 |
| 150% | $23,940 | 4.30% | $14,885 |
| 200% | $31,920 | 6.78% | $13,750 |
| 250% | $39,900 | 8.66% | $12,459 |
| 300% | $47,880 | 10.22% | $11,021 |
| 400% | $63,840 | 10.22% | $9,390 |
| Over 400% | $63,841 | — | $0 |
2027 cover, federal rules, lower 48 states and DC. Alaska and Hawaii use higher poverty lines and are not modeled. Medicaid, state subsidies and married filing separately (no credit) are not modeled, and the premium is yours to enter: it depends on each person's age and your area. The link carries your figures after the #, so you can save or share it. Your figures are not sent to us.
In early retirement, income is a choice
A salary sets your income for you. Living off savings, you decide each year how much of it is taxable: spending cash or your own Roth contributions adds nothing, while a traditional IRA withdrawal or a Roth conversion adds every dollar. That makes the credit something you plan, not something that happens to you.
It also means the cheapest year for a big Roth conversion may not be the one with the lowest tax bracket. A conversion that carries income over the cliff can cost more in lost credit than in tax, so the headroom figure above is worth setting beside the brackets before a conversion is sized.
Where the cliff sits for 2026 cover
The line is 400% of the poverty guideline for your household size, in the lower 48 states and DC:
- 1 person$62,600
- 2 people$84,600
- 3 people$106,600
- 4 people$128,600
Below the line, the share of income you are expected to pay rises with income, from 2.10% near the poverty line to 9.96% from 300% upward. The credit is the benchmark premium minus that share, so it shrinks gradually as income rises, then drops to nothing at the line. The older you are, the higher the premium and the bigger the drop.
The calculator opens on 2027 cover (2026 is this year's). It uses the IRS's 2027 table, which runs from 2.15% near the poverty line to 10.22% from 300% upward, and the 2026 poverty guideline, so the line for one person is $63,840 and for two $86,560. As the law stands for 2027, the credit ends above 400% of the poverty line. KFF has not published a 2027 benchmark premium for a 60-year-old, so the premium field is yours to fill.
Questions people ask
- What is the ACA subsidy cliff?
- The premium tax credit stops at 400% of the federal poverty line. From 2021 to 2025 a temporary rule let households above that line keep a credit; it ended on 31 December 2025, so for 2026 cover the line is a hard edge again, and the IRS's table for 2027 also stops at 400%. One dollar over it and the credit is zero, whatever the premium.
- What income counts?
- Modified adjusted gross income: your adjusted gross income plus tax-exempt interest, the part of Social Security that is not taxed, and excluded foreign income. Traditional IRA and 401(k) withdrawals, Roth conversions, capital gains, dividends and wages all count. Spending cash, selling at no gain, or taking your own Roth contributions back out does not add income.
- Why does the calculator use the 2025 poverty line for 2026?
- The credit uses the poverty guidelines in effect on the first day of open enrollment for the coverage year. Open enrollment for 2026 cover began on 1 November 2025, so the 2025 guidelines apply. The 2026 guidelines set credits for 2027 cover: the calculator uses them, with the IRS's 2027 percentage table, when 2027 is selected.
- What if my income turns out different from my estimate?
- The credit paid in advance during the year is based on your estimate, then settled on your tax return. If your final income is higher, you may owe some back; if it lands over the 400% line, the advance credit has to be repaid. Income that lands just under the line keeps part of the credit; income just over it loses all of it.
- What happens at very low income?
- Below 100% of the poverty line there is no credit. In states that expanded Medicaid, adults with income up to about 138% of the poverty line usually qualify for Medicaid instead. In states that did not expand it, income under 100% falls in the coverage gap. This calculator does not check your state.
- Which premium should I enter?
- The yearly price of the second-lowest-cost silver plan in your area, for everyone on your plan. The marketplace shows it when you browse plans. That plan sets the size of the credit, which you can then use on any marketplace plan: a cheaper plan costs you less, a dearer one more, and the credit never exceeds the price of the plan you buy.
Sources: Internal Revenue Code §36B (premium tax credit; §36B(b)(3) applicable percentage and benchmark plan, §36B(c)(1) the 100% and 400% limits, §36B(d)(2)(B) modified adjusted gross income, §36B(f) reconciliation); 45 CFR 147.102 (age rating); 26 CFR 1.36B-1(h) and 1.36B-3(g); IRS Rev. Proc. 2025-25 §3.01 (2026 applicable percentage table) and Rev. Proc. 2026-26 §3.01 (2027); HHS 2025 Poverty Guidelines, 90 FR 5917, and the 2026 Poverty Guidelines; HealthCare.gov (Medicaid expansion income limit); KFF (2026 benchmark silver premium for a 60-year-old, the default premium).