Health Insurance Subsidy Calculator
A health insurance subsidy, or premium tax credit, caps the share of your income you pay for a benchmark plan. The subsidy is the gap between that benchmark premium and your expected contribution.
Estimated subsidy
$3,300.00
- Poverty line for the household
- $25,820.00
- Income as percent of poverty line
- 232.378
- Expected annual contribution
- $5,100.00
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Subsidy = benchmark premium - income x applicable percentage
- income
- Household income used to set the credit
- benchmark
- Annual premium of the benchmark plan
- percent
- Share of income you are expected to pay
- subsidy
- Premium tax credit that lowers the cost
How to check the result by hand
- 1
Add up household income
Use modified adjusted gross income for everyone on the return, including self-employment and investment income, not just the main salary.
- 2
Find your poverty line
Take the federal poverty guideline for your household size. This sets where you sit on the sliding scale that determines your expected contribution.
- 3
Look up the applicable percentage
The share of income you are expected to pay rises in steps with income. Apply it to your household income to get your expected annual contribution.
- 4
Subtract from the benchmark premium
Take the annual cost of the second-lowest silver plan in your area and subtract your expected contribution. The remainder is your subsidy.
- 5
Compare plan options
The credit is capped by the benchmark. A cheaper plan keeps you ahead; a richer plan costs more than the credit covers, so compare the full plan, not just the premium.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Health Insurance Subsidy page.