COBRA or a full-price Marketplace plan after leaving work?
When subsidies are unlikely, compare COBRA’s continuity with a new ACA plan using premiums, deductible progress and provider access.
The 2026 Marketplace income limit: what 400% FPL means
The 2026 premium tax-credit rule again has a 400% FPL ceiling. Learn how the percentage is applied and why household size matters.
The rule changed after 2025
The IRS says the temporary expansion that allowed some households above 400% of the federal poverty line to claim a premium tax credit applied to tax years 2021 through 2025. For 2026, the general upper income limit is 400% FPL. This is a tax-credit limit, not a ban on buying Marketplace coverage.
The dollar amount behind 400% depends on family size and the federal poverty guideline used for the coverage year. Alaska and Hawaii have different guidelines. A fixed salary quoted without household context can be misleading.
Use the right income measure
Marketplace savings are based on projected household modified adjusted gross income, not only wages or last year’s return. The tax household usually includes a spouse and dependents, even when some do not need coverage. Review capital gains, self-employment and retirement income as applicable.
If your income is close to the line, avoid treating a rough estimate as a guaranteed credit. The final allowable tax credit is reconciled on the federal return. IRS guidance says excess advance credits for tax years after 2025 have no repayment cap.
What a shopper should do
Complete a current Marketplace application or use an official preview, then read the actual eligibility result. If no credit applies, compare full-price ACA plans with other coverage using the same household, location and effective date.
This article describes 2026 coverage rules reviewed on October 26, 2026. Recheck IRS and Marketplace guidance for later coverage years.
Sources
Frequently asked questions
Is 400% FPL a fixed dollar salary?
No. The relevant amount depends on household size and the applicable poverty guideline.
Can I remain on a Marketplace plan above the limit?
Generally yes if you meet enrollment rules; the issue is paying the full premium without a tax credit.
Educational information reviewed October 26, 2026. Marketplace savings, enrollment, plan availability and private underwriting depend on current rules and individual facts. Official eligibility notices and plan documents control. Prestige is an independent insurance agency, not the Marketplace or insurer.
Related articles
Special Enrollment Periods when you receive no subsidy
A qualifying life event can open Marketplace enrollment even for a full-price shopper. The event, documentation and timing still matter.
Open Enrollment when you expect to pay full price
A zero subsidy does not change the Marketplace enrollment window. Prepare income, providers and plan comparisons before the deadline.