ACA Subsidy Calculator
for Early Retirees
Model your 2026 premium tax credit based on projected income — built for people planning Roth conversions and income timing years ahead of enrollment, not for picking a plan this week.
The interaction between Roth conversions, capital gains timing, and ACA subsidies is one of the most consequential financial decisions in early retirement — and one of the easiest to get wrong. If you're planning a significant conversion or income event, it's worth modeling with a fee-only CFP who specializes in early retirement before you act.
RetireSmart — Retirement Calculator
For a full retirement projection including healthcare as an income event, model your complete plan with RetireSmart.
How This Is Calculated
All figures below are public record. Source data is cited so the formula is checkable, not a black box.
100% FPL & 400% Cliff — 48 Contiguous States + DC
| Size | 100% FPL | 400% FPL (Cliff) |
|---|---|---|
| 1 | $15,650 | $62,600 |
| 2 | $21,150 | $84,600 |
| 3 | $26,650 | $106,600 |
| 4 | $32,150 | $128,600 |
| 5 | $37,650 | $150,600 |
| 6 | $43,150 | $172,600 |
| 7 | $48,650 | $194,600 |
| 8 | $54,150 | $216,600 |
Alaska
| Size | 100% FPL | 400% FPL (Cliff) |
|---|---|---|
| 1 | $19,550 | $78,200 |
| 2 | $26,430 | $105,720 |
| 3 | $33,310 | $133,240 |
| 4 | $40,190 | $160,760 |
| 5 | $47,070 | $188,280 |
| 6 | $53,950 | $215,800 |
| 7 | $60,830 | $243,320 |
| 8 | $67,710 | $270,840 |
Hawaii
| Size | 100% FPL | 400% FPL (Cliff) |
|---|---|---|
| 1 | $17,990 | $71,960 |
| 2 | $24,320 | $97,280 |
| 3 | $30,650 | $122,600 |
| 4 | $36,980 | $147,920 |
| 5 | $43,310 | $173,240 |
| 6 | $49,640 | $198,560 |
| 7 | $55,970 | $223,880 |
| 8 | $62,300 | $249,200 |
Required Contribution Percentages — 2026
| % of FPL | Required Contribution Rate |
|---|---|
| 100% – 132% | 2.10% (flat) |
| 133% – 149% | 3.14% → 4.19% (linear interpolation) |
| 150% – 199% | 4.19% → 6.60% (linear interpolation) |
| 200% – 249% | 6.60% → 8.44% (linear interpolation) |
| 250% – 299% | 8.44% → 9.96% (linear interpolation) |
| 300% – 400% | 9.96% (flat) |
| Above 400% | No subsidy (cliff) |
Formula: Required Contribution ($) = MAGI × applicable rate. If benchmark premium entered: Annual PTC = max(0, benchmark annual − required contribution), capped at actual premium. Monthly PTC = Annual PTC ÷ 12. Net monthly premium = benchmark monthly − monthly PTC (floor $0).
Frequently Asked Questions
What counts as MAGI for ACA subsidy purposes?
MAGI for ACA subsidy purposes includes Traditional IRA and 401(k) withdrawals, Roth conversions, capital gains and dividends, 100% of Social Security benefits, interest income, and freelance or part-time earnings. It does not include Roth IRA contribution withdrawals (basis only) or HSA withdrawals used for qualified medical expenses.
What happens if my income goes over the 400% federal poverty level cliff?
If your Modified Adjusted Gross Income (MAGI) exceeds 400% of the federal poverty level, you become ineligible for any ACA premium tax credit — this is a hard cliff, not a gradual phase-out. Going even one dollar over means the full subsidy disappears.
Does this calculator account for Alaska and Hawaii’s different poverty guidelines?
Yes. Alaska and Hawaii have separately published, higher federal poverty guidelines than the 48 contiguous states and Washington D.C. This calculator uses state-specific 100% and 400% FPL thresholds for all three geographies, based on the 2025 HHS Poverty Guidelines used for 2026 ACA coverage-year eligibility.
Does 100% of Social Security income count toward ACA MAGI?
Yes. Unlike regular federal income tax, which only taxes 50–85% of Social Security benefits depending on total income, ACA MAGI counts 100% of Social Security benefits received.
For informational purposes only. Not financial or medical advice. ACA rules change annually — always verify current thresholds and get your exact subsidy at healthcare.gov.