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UPDATED FOR 2026 · BUILT FOR SELF-EMPLOYED

ACA Premium Tax Credit Calculator

Estimate your 2026 ACA Marketplace subsidy as a self-employed or 1099 contractor. Includes MAGI calculation, federal poverty level percentage, cost-sharing reduction tier, and Medicaid eligibility check by state.

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Your 2026 Estimated Subsidy

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Bronze Plan

Lowest premium

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— after subsidy
  • Plan pays ~60% of costs
  • Highest deductibles (~$7,500)
  • Best for healthy enrollees
  • Often HSA-eligible
Silver Plan · BENCHMARK

Subsidy is calculated against this

—
— after subsidy
  • Plan pays ~70% of costs
  • Cost-sharing reductions if < 250% FPL
  • Most popular pick
  • The benchmark for tax credit math
Gold Plan

Lowest out-of-pocket

—
— after subsidy
  • Plan pays ~80% of costs
  • Lower deductibles (~$1,500)
  • Best for high-utilization
  • Higher premium even with subsidy

💡 Self-employed: lower your MAGI, raise your subsidy

For 1099 contractors and freelancers, your MAGI is after business expenses, the deductible portion of self-employment tax, HSA contributions, and traditional IRA contributions. Each $1,000 of HSA or traditional IRA contribution can save you several hundred dollars in subsidy at the right income level.

A self-employed enrollee with $80K gross can often hit $55K MAGI through HSA + Solo 401(k) contributions, which can swing subsidy by $200-$500/month.

📋 How this calculator works

Sources: 2026 ACA premium tax credit formula (Inflation Reduction Act enhanced subsidies through 2025), 2025 federal poverty levels (used for 2026 plan year — single $15,650, household of 4 = $32,150), CMS-published average benchmark Silver plan premium of ~$510/mo for 40-year-old non-smoker.

Formula: Cap household premium contribution at applicable percentage of MAGI (sliding 0% to 8.5% based on FPL band). Subsidy = benchmark Silver plan cost − applicable contribution. Same subsidy can be applied to any metal tier plan.

Limits: Estimates within 5-10% of actual healthcare.gov calculation. Real subsidy depends on the benchmark Silver plan in your specific ZIP code, age-rating, and tobacco rules in your state. For binding numbers, run your real income at healthcare.gov or call 256-800-4885 for free help.

ACA Subsidy Calculator FAQ

How accurate is the ACA subsidy calculator?+
The calculator uses 2026 federal poverty level numbers and the ACA Inflation Reduction Act subsidy formula (cap household premium at 8.5% of MAGI for the benchmark Silver plan). It estimates within 5-10% of the actual healthcare.gov calculation. The exact subsidy depends on the benchmark Silver plan in your specific ZIP code, which varies by state and rating area. Use this for budgeting, then run your real numbers at healthcare.gov or call 256-800-4885.
How is MAGI calculated for self-employed people?+
Modified Adjusted Gross Income (MAGI) for ACA purposes is roughly: net self-employment income (gross revenue minus business expenses) plus any other income, minus the deductible portion of self-employment tax (about 7.65% of net SE income), minus the self-employed health insurance deduction, minus HSA contributions, minus traditional IRA contributions. Adding tax-deferred retirement contributions and HSA contributions can lower your MAGI and increase your subsidy — sometimes by thousands of dollars per year.
What are the 2026 federal poverty level numbers?+
2026 federal poverty level: single $15,650; household of 2 = $21,150; household of 3 = $26,650; household of 4 = $32,150. Add $5,500 for each additional person. Subsidy eligibility uses 100% to 400% of FPL for the cliff (under current rules) — though through 2025 the IRA enhancements remove the income cliff entirely.
Should I take the subsidy in advance or at tax time?+
Most people take the Advance Premium Tax Credit (APTC) — applied to your monthly premium so you pay less each month. The credit is reconciled at tax time on Form 8962. If you underestimated income, you may owe back; if you overestimated, you'll get a refund. If your income is unstable (common for self-employed), be conservative — estimate higher than expected to avoid a tax-time surprise.
Can self-employed people deduct ACA premiums?+
Yes — self-employed health insurance premiums (for you, your spouse, dependents) are deductible on Schedule 1 (above-the-line deduction). The deduction can't exceed your net self-employment income. Premiums paid through the ACA marketplace are deductible only after subtracting any premium tax credits you received. Months you were eligible for an employer-subsidized plan don't count.

Get Real Help Enrolling

The calculator gets you in the ballpark. A licensed insurance agent who specializes in self-employed health insurance can run your real numbers and walk you through enrollment.

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