What are the income limits for marketplace insurance?

Written by Editorial Team | Last Updated: August 2026

Eligibility for federal subsidies and premium tax credits through the Affordable Care Act health insurance marketplace is determined by comparing a household's modified adjusted gross income against the federal poverty level. Generally, individuals and families earning between 100% and 400% of the federal poverty level qualify for substantial financial assistance to lower monthly premium costs, while those with lower incomes may qualify for enhanced cost-sharing reductions that decrease out-of-pocket deductibles and copayments. Legislation expanded premium tax credit eligibility beyond the traditional 400% threshold, ensuring that no household spends more than a designated percentage of their income on benchmark silver-tier coverage. Exact monetary thresholds adjust annually based on updated federal poverty guidelines published by the Department of Health and Human Services.

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