A premium tax credit is a form of financial assistance. It helps with the cost of buying health insurance. Before you enroll in a new plan, check to see if you qualify for a tax credit.

Who Is Eligible?

Premium tax credits are for individuals and families who:

• Have a household income that meets the federal guidelines 
• Purchased a Health Insurance Marketplace plan (either on your state’s respective Marketplace or an eligible plan via your insurer’s website)
• Are U.S. citizens or lawfully present in the U.S.

You are not eligible if you can get affordable coverage through your job¹, or if you qualify for one of the following:

• Medicare
• Medicaid
• Children’s Health Insurance Program (CHIP)
• TRICARE

Learn how to estimate your income for the Marketplace. 

How Does the Tax Credit Work?

Your income, family size and the type (and cost) of plan you buy is used to see if you qualify for a premium tax credit. You’ll give this information on your Marketplace application.

If you do qualify, you can decide if you want to have all, some or none of your estimated credit applied to your plan’s monthly premiums.

If you choose not to use the credit toward monthly premiums, you can claim the credit when you file your tax return for the year. This will either lower the amount of taxes you owe or increase your refund.

Can the Tax Credit Amount Change?

If there is a change in your family size, income or employment during the year, the amount of your premium tax credit can change. Be sure to update this information in your Marketplace account.

Here are a few events that can affect the amount of your premium tax credit:

• Your household income changes
• You get married, divorced, or have a child
• You gain health care coverage through your job
• You move to an area with different plans or plan costs

What Do I Report on My Taxes?

The Marketplace will send you a 1095-A form showing your premium amount. You’ll report this on your tax return.

Premium tax credits can be confusing, and the guidelines can change. If you still have questions, a tax advisor can help. You can also find more information at healthcare.gov/taxes or at irs.gov.

How Do I Find Out if I Qualify for a Tax Credit?

Use the HealthCare.gov Health Coverage Tax Tool  to help calculate your premium tax credits today.

¹Your employer must offer health insurance coverage that’s considered “affordable” and meets minimum value standards; in 2026, your plan can cost no more than 9.96% of your household income and at least 60% of allowed costs must be covered to meet these requirements. If your plan is deemed unaffordable or doesn’t meet minimum value standards, you may qualify for premium tax credits.