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You are viewing 2026 figures, for coverage in 2026 and your 2026 tax return. See the 2027 subsidies FAQ.

How Covered California Subsidies Are Calculated in 2026

Learn how premium tax credits and cost-sharing reductions are calculated, and how to estimate your savings for 2026.

How Do Subsidies Work?

Covered California offers two types of financial help:

  1. Premium Tax Credits: Lower your monthly premium
  2. Cost Sharing Reductions (CSR): Lower your out-of-pocket costs

Your subsidy amount is based on your household income relative to the Federal Poverty Level (FPL).

What Changes in the 2026 Calculation

The formula is the one Covered California has used since 2014. For 2026 the enhanced subsidies of 2021-2025 are gone, so several of its inputs went back to the old rules:

  • Your share of the benchmark Silver plan is higher. In 2025 households up to 150% FPL paid $0 for it and nobody paid more than 8.5% of income. For 2026 the share runs from 2.1% of income below 133% FPL to 9.96% just under 400% FPL.
  • The 400% line is back. One person earning $62,600 or more ($128,600 or more for a family of 4) gets no premium help from Covered California, however high the premium. In 2025 there was no upper limit.
  • California fills part of the gap at low incomes. Its state subsidy ($190 million) keeps the benchmark Silver plan near $0 up to 150% FPL and lowers it up to 165% FPL.
  • Cost-sharing reductions did not change: Silver 94 up to 150% FPL, Silver 87 up to 200% and Silver 73 up to 250%, with the same Silver premium.

The Same Income in 2025 and 2026

Income (one person) 2025: FPL 2025: you pay a month 2026: FPL 2026: you pay a month
$25,000 166% $13 159% $96
$35,000 232% $96 223% $217
$45,000 298% $222 287% $359
$55,000 365% $349 351% $457
$63,000 418% $446 402% No credit

What one person pays a month for the benchmark Silver plan with the premium tax credit alone; any premium above that is the credit. California's state subsidy lowers the amount further up to 165% FPL.

Premium Tax Credits

Premium tax credits reduce your monthly insurance cost. Key points:

  • Covered California gives the credit in advance for incomes from 100% to below 400% of FPL in 2026 (under $62,600 for one person for 2026 coverage); at 400% FPL or above there is no premium tax credit. The enhanced subsidies of the American Rescue Plan ended December 31, 2025.
  • Based on the cost of the "benchmark" Silver plan in your area
  • You can use the credit to buy any metal tier plan
  • Credits are applied directly to your monthly premium

Cost Sharing Reductions

CSR benefits lower your deductibles and copays. You must choose a Silver plan to get CSR:

  • Silver 73: Income 200-250% FPL
  • Silver 87: Income 150-200% FPL
  • Silver 94: Income up to 150% FPL

Income Calculation (MAGI)

Subsidies are based on Modified Adjusted Gross Income (MAGI), which includes:

  • Wages and salary
  • Self-employment income (net)
  • Social Security benefits
  • Retirement income
  • Investment income

Certain deductions (retirement contributions, student loan interest) reduce MAGI.