ACA subsidy
for 1099 workers
Estimate your 2027 marketplace premium tax credit based on projected self-employment income. Federal poverty level, premium cap, and monthly subsidy in 30 seconds.
Run your subsidy estimate
Subsidy breakdown
What you'd actually pay
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Premium tax credit = SLCSP cost − your contribution cap.
The Affordable Care Act caps the percentage of household income you pay toward the benchmark "second-lowest-cost Silver plan" (SLCSP) in your county. Pay more than that cap, and the federal government picks up the rest as the Premium Tax Credit (PTC).
2027 contribution caps by income (% of MAGI):
- Under 150% FPL → 0% (premium fully covered)
- 150–200% FPL → 0–2% (linear)
- 200–250% FPL → 2–4% (linear)
- 250–300% FPL → 4–6% (linear)
- 300–400% FPL → 6–8.5% (linear)
- 400%+ FPL → 8.5% flat cap, IF ARPA/IRA enhanced subsidies remain in effect
The "subsidy cliff" status. The American Rescue Plan Act (2021) and Inflation Reduction Act (2022) extended subsidies past 400% FPL with the 8.5% cap. That extension is in place through 2025. Whether it carries into 2026 and 2027 depends on Congressional action — this calculator assumes the extension remains, which has been the working assumption across most CBO models. If Congress lets it sunset, anyone above 400% FPL loses subsidies entirely and the math reverts to the pre-ARPA cliff.
Self-employed advantage. 1099 workers control their MAGI more than W-2 employees. The SE health insurance deduction, Solo 401(k) contributions, SEP-IRA contributions, and HSA contributions all lower MAGI dollar-for-dollar — which can move you into a lower FPL band and unlock larger subsidies. A $5,000 retirement contribution can be worth more than $5,000 in subsidy on the margin.
Medicaid expansion gap. If your projected income falls under 100% FPL AND you live in a non-expansion state (AL, FL, GA, KS, MS, SC, TN, TX, WI, WY as of 2026), you fall into the coverage gap — too much for Medicaid, too little for marketplace subsidies. Read the freelancer health insurance guide for what to do in that case.
This calculator gives estimates. Real subsidy depends on your actual SLCSP (varies by county), your enrolled plan tier, and your final MAGI when you file. Use this to size the decision; check healthcare.gov or your state marketplace for binding numbers during open enrollment (Nov 1, 2026 – Jan 15, 2027 in extension states).