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What income limits apply to ACA subsidies for different household sizes?
Executive summary
The basic rules: under the Affordable Care Act (pre‑ARP/IRA baseline) premium tax credits were targeted at households with incomes between 100% and 400% of the federal poverty level (FPL), with required household contributions phased from about 2% up to 8.5% of income by 400% FPL (and eligibility ending above 400% FPL) [1] [2]. From 2021–2025 Congress temporarily expanded and enhanced subsidies so there is effectively no strict 400% cutoff through 2025 (eligibility instead depends on whether the benchmark premium would exceed 8.5% of MAGI); that enhanced rule is set to expire at the end of 2025 unless lawmakers act, which would restore the 100%–400% FPL framework for 2026 [3] [4] [1].
1. How the old (statutory) income limits work — the 100%–400% FPL frame
Under the ACA as originally structured, premium tax credits were available to households with incomes between 100% and 400% of the federal poverty level; within that band the law set “applicable percentages” so households pay a rising share of income for the benchmark (second‑lowest cost Silver) plan — roughly 2% by 200% FPL, about 6% by 300% FPL and up to 8.5% at 400% FPL — and households above 400% normally were ineligible for credits [1] [2].
2. What the temporary enhancements changed — no rigid 400% cliff through 2025
The American Rescue Plan (ARP) and its later extension by the Inflation Reduction Act (IRA) expanded eligibility and increased the generosity of subsidies for plan years 2021–2025. Under those temporary rules there has not been a strict income cap: instead people above 400% of FPL could still receive premium tax credits if the benchmark premium would otherwise exceed 8.5% of the household’s ACA‑specific MAGI. That made subsidy eligibility depend on the actual premium cost relative to income, not just a percent‑of‑FPL cutoff [4] [3] [2].
3. What could change in 2026 — the “subsidy cliff” returning unless Congress acts
Multiple reporting and analysis pieces warn that if Congress allows the temporary enhancements to lapse after 2025, the pre‑ARP 400% FPL cutoff will return for plan year 2026 and many enrollees above that line would lose subsidies abruptly — the so‑called “subsidy cliff.” Commentators and analysts have quantified sample income amounts that correspond to about 400% of FPL (for instance, about $62,600 for a single person in some 2025 calculations) to illustrate who would be affected [5] [6] [1].
4. Household size matters — how FPL scales by family size
Eligibility thresholds are calculated from the Federal Poverty Level for a given household size; so the dollar cutoff for 400% (or any FPL percentage) increases with each additional household member. Published examples and calculators commonly show per‑person thresholds (e.g., 400% FPL figures cited in consumer guides and broker pages for one, two, three, and four‑person households) to help consumers estimate whether their MAGI falls inside the eligible band — but exact dollar numbers depend on the year’s FPL guideline and whether enhanced rules still apply [7] [8] [9].
5. Practical numbers cited in coverage and calculators
Several consumer calculators and news stories translate the FPL percentages into sample dollar thresholds: for 2025/2026 coverage discussions you’ll see figures such as roughly $62,600 for a one‑person household at 400% FPL and around $85,000 for a two‑person household in some reporting and blog examples — those sample numbers are used to show who might cross the 400% line if enhanced subsidies expire [6] [5] [7]. Exact cutoffs for a given plan year require the official HHS poverty guideline for that year and whether the temporary subsidy rules remain in force [10] [1].
6. Two competing ways to think about eligibility right now
Perspective A (policy baseline): read the statute and pre‑ARP rules — subsidies target 100%–400% FPL with a hard cutoff above 400% [1]. Perspective B (practical reality 2021–2025): because ARP/IRA enhancements removed the strict cap through 2025, many people above 400% have been eligible if market premiums would otherwise eat more than 8.5% of income; that approach is what many consumers have relied on [4] [3]. Which rule governs consumers in 2026 depends on congressional action [1].
7. What readers should do next — check your household MAGI, household size, and watch Congress
To estimate your own eligibility, use an ACA subsidy calculator tied to the relevant year’s poverty guidelines and input your household size and projected MAGI; note that calculators and brokers have been publishing sample 400% FPL dollar thresholds to illustrate impact [8] [3] [7]. Also monitor whether Congress extends the ARP/IRA enhancements — if not, the 100%–400% FPL framework and its abrupt cliff will return for plan year 2026 [1] [5].
Limitations: available sources do not list the full table of FPL dollar amounts for every household size in 2026 within this search set — for exact dollar cutoffs consult the official 2025 HHS poverty guidelines or a marketplace calculator for the specific plan year you’re examining [10] [8].