Health Insurance Tax Credits: How to Save on Premiums

Health insurance premium tax credits reduce the monthly cost of ACA marketplace plans for eligible individuals and families. These credits are based on your household income relative to the federal poverty level. With enhanced subsidies continuing through 2026, a single person earning $40,000 can save $300 or more per month on their health insurance premiums.

Who Qualifies?

You may qualify for premium tax credits if you:

• Purchase coverage through Healthcare.gov (or your state's exchange)
• Have a household income between 100% and 400% FPL (enhanced subsidies extend above 400%)
• Are not eligible for affordable employer coverage or government programs like Medicaid
• File taxes and are not claimed as a dependent

Income Limits for 2026

• Single person: $15,060 - $60,240 for full subsidies (partial subsidies above this)
• Family of 2: $20,440 - $81,760
• Family of 4: $31,200 - $124,800

How Credits Are Calculated

Your required contribution is a percentage of income (0% to 8.5%) toward the benchmark Silver plan. The tax credit covers the difference between this amount and the actual benchmark premium in your area. You can apply the credit in advance to reduce monthly payments.

Maximizing Your Savings

• Contribute to tax-advantaged retirement accounts to lower your MAGI
• Consider HSA contributions if you have a qualifying plan
• Report income changes mid-year to adjust your credit
• Compare plans—you can use credits toward any metal tier

Resilience Health Advisors helps people nationwide maximize their tax credit savings. Find out how much you can save.