Premium Tax Credit Calculator
ACA premium credit, monthly value, and poverty share from income.
What it does
Marketplace credits tie to income share of poverty. Lower shares pay less expected premium, with the credit covering the benchmark rest.
The tool above runs the 2024 bands. Thirty thousand dollars single with a $6,000 benchmark sits at 206 % of poverty, contributing about 2.2 % of income, for a $5,330.86 credit worth $444.24 a month.
Poverty lines anchor the math. Fourteen thousand five eighty for one person plus fifty one forty per extra sets each share.
Bands slide the rate. Zero percent under 150 % FPL rises through 2, 4, and 6 toward 8.5 % at 400 % plus, interpolated inside.
Advance payments reconcile later. Credits paid monthly square with actual income at filing.
How to use
- Enter household income.
- Enter household size.
- Enter benchmark yearly premium.
- Read credit first.
- Read monthly next.
- Read FPL share and file correctly.
Formula
- income
- Household modified AGI.
- household
- People in the tax household, 1 to 8.
- benchmark
- Benchmark plan yearly premium.
2024 bands slide 0 % to 8.5 % across 150 to 400 % FPL per Rev. Proc. 2023-29. Monthly divides credit by 12.
Worked example
Example: $30k single, $6k benchmark
Defaults: $30,000 income, single, $6,000 benchmark. These are also the default values, so the page opens on this answer.
- Income: $30,000, single household.
- FPL: $14,580 for one person.
- Share: 30000 / 14580 x 100 = 206 % after rounding (205.8).
- Band: 200 to 250 %, so rate is 2.23 %.
- Expected: 30000 x 0.0223 = $669.14.
- Credit: 6000 - 669.14 = $5,330.86 with a $6,000 benchmark.
- Monthly: 5330.86 / 12 = $444.24.
- Tool shows $5,330.86, $444.24 per month, 206 % of FPL.
Reference table
| Income share | Rate | Example |
|---|---|---|
| Under 150 % | 0 % | Full benchmark |
| 200 % | 2 % | $1,200 on $60k |
| 300 % | 6 % | Band start |
| 400 % plus | 8.5 % | Capped share |
Limits
- Estimate only, not tax advice.
- 2024 tables used here.
- Eligibility rules gate everything.
- State plans vary.
Common mistakes
- Wrong poverty year for coverage.
- Missing household members.
- Benchmark confused with chosen plan.
- Ignoring reconciliation at filing.
- Skipping income updates midyear.
Try it yourself
Quick checks. Answers sit tucked under each question.
$20k single, $5k benchmark?
FPL is $14,580. Share is 20000 / 14580 x 100 = 137 %, under 150, so rate 0 %. Credit is min(benchmark, full): with $5,000 benchmark the credit is $5,000.00.
$60k family of 4, $12k benchmark?
FPL for 4 is 14580 + 3 x 5140 = $30,000. Share is 60000 / 30000 x 100 = 200 %. Rate is 2 %. Expected is 60000 x 0.02 = $1,200. With $12,000 benchmark the credit is $10,800.00.
Questions
Credit amount?
Subtract expected contribution from benchmark. Here 6000 - 669 = $5,330.86.
Percent of FPL?
Divide income by poverty line. Here 30000 / 14580 x 100 = 206 %.
Contribution rates?
From 0 % under 150 % FPL to 8.5 % at 400 % plus, sliding within bands.
Which poverty line?
2023 poverty guidelines set 2024 coverage: $14,580 single plus $5,140 per extra person.
Advance credit counts?
Yes. Advance payments reconcile at filing; overpayments may repay.
State differences?
No. State rules and plan availability vary.