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What Is the Income Limit for ACA Subsidies in California? (2026)
For 2026 coverage, the enhanced subsidies that briefly extended help to everyone are gone, and the original rules are back: premium tax credits phase out and stop at 400% of the federal poverty level. Above that line you pay full price.
The 2026 numbers for California
Roughly: a single person loses the subsidy above about $62,600 of modified adjusted gross income; a couple above about $84,600; a family of four above about $128,600. These move slightly each year, and "income" means MAGI — after business expenses for the self-employed.
Why it's called a cliff
Earn one dollar over the line and the entire credit disappears. A California couple at $84,000 might pay $300 a month; at $86,000 they pay $1,400. That's the single most expensive dollar in the tax code, and it's why self-employed Californians near the line plan their income carefully.
Below 100%: the gap
Medicaid is expanded (Medi-Cal) in California. In states that didn't expand Medicaid, adults under the poverty line can get neither Medicaid nor a subsidy. California regulates non-ACA coverage more tightly than most states, and the state mandate and Covered California's state subsidies change the math for many people, so private options here are narrower and the honest answer is often a careful comparison, not a promise of savings.
What to do if you're over the cliff
Private shared-network plans are priced on health, not income, so the cliff doesn't exist for them. For healthy people above 400% FPL in California, a private PPO on Cigna, Aetna and PHCS PPO is often half the full marketplace price. If you're near the line, talk to your CPA about retirement contributions and the self-employed health deduction — both lower MAGI.
Check your options and we'll tell you which side of the line you're on and what each side costs.