United States Premium Tax Credit and Marketplace 2026
The United States Premium Tax Credit connects Marketplace coverage, household eligibility and reconciliation of advance payments for 2026.
On this page
- General household income range
- 100% to 400% of the federal poverty lineIRS, Premium Tax Credit questions and answers
- 2026 excess advance payments
- Full excess repayment; no repayment capIRS, Premium Tax Credit questions and answers
Eligibility for Marketplace coverage credit
Eligibility generally requires household income of at least 100% and no more than 400% of the federal poverty line for family size. For tax years 2021 through 2025, Congress temporarily removed that 400% upper limit. A person cannot be claimed as another taxpayer’s dependent. Married filing separately generally disqualifies a claimant, with special rules for domestic abuse and spousal abandonment. IRS, Premium Tax Credit questions and answers (opens in a new tab).
Coverage conditions
For at least one month, a family member must be enrolled through a Marketplace, excluding catastrophic coverage, without access to affordable employer coverage providing minimum value or eligibility for government coverage such as Medicare or Medicaid. The remaining premium share must be paid, unless special circumstances apply. IRS, Premium Tax Credit questions and answers (opens in a new tab).
Coverage-year income
Marketplace savings use the estimated income for the year of coverage, rather than the previous year. A Marketplace application provides exact plan prices and savings. HealthCare.gov, income levels and savings (opens in a new tab).
Reconciling advances in 2026
Advance payments are reconciled with the allowable Premium Tax Credit on the tax return. For tax years after 2025 there is no repayment cap: the full excess of advance payments over the allowable credit is added to tax liability, reducing a refund or increasing a balance due. IRS, Premium Tax Credit questions and answers (opens in a new tab).
Scope
This guide explains general federal eligibility and reconciliation. It does not determine an individual credit, coverage entitlement or premium, and excludes state-specific assistance. General information only, not personalised tax or insurance advice.