ACA subsidies in Arizona: who qualifies for 2026 and 2027

ACA subsidies are federal tax credits that lower the monthly premium on a plan you buy through HealthCare.gov, Arizona's Marketplace. For 2026, the extra help that Congress added from 2021 through 2025 has expired, so premium tax credits are generally available to households with income between 100% and 400% of the federal poverty level, and the amount you are expected to pay toward a benchmark Silver plan ranges from 2.10% to 9.96% of your income (IRS Rev. Proc. 2025-25). Above 400%, there is no credit. As of October 2026, Congress has not restored the enhanced credits for 2027. Because these rules have moved several times, always confirm your numbers on HealthCare.gov before you enroll.

Two kinds of help, and how they differ

The premium credit is calculated against a benchmark: the second-lowest-cost Silver plan where you live. You can apply the credit to any metal level, so a credit sized to a Silver plan can make a Bronze plan very inexpensive, or bring a Gold plan within reach.

• Premium tax credit: lowers your monthly premium. You can take it in advance, paid straight to the insurer each month, or claim it when you file your taxes.
• Cost-sharing reduction: lowers your deductible, copays and out-of-pocket maximum. It only applies if you choose a Silver plan and your income is at or below 250% of the poverty level.

What changed in 2026

From 2021 through 2025, the American Rescue Plan and the Inflation Reduction Act made credits larger and removed the upper income limit. Those enhancements ended on December 31, 2025. In January 2026 the U.S. House passed a three-year extension, but the Senate did not, and as of this review in October 2026 the enhanced credits have not been restored.

So for 2026 the original ACA rules apply again. The IRS publishes the share of income you are expected to pay each year. For 2026 it is shown in the table below.

If Congress does change the law again before or during 2027 Open Enrollment, HealthCare.gov will update its calculations. We will update this guide as soon as any change is final, and we review it at least every fall.

What those percentages mean in dollars

Marketplace eligibility uses the poverty guidelines published the January before your coverage year. Coverage in 2026 uses the 2025 guidelines. Coverage in 2027 uses the 2026 guidelines from the U.S. Department of Health and Human Services.

Arizona expanded Medicaid, so adults with income up to about 138% of the poverty level are usually directed to AHCCCS rather than to a Marketplace credit. Children in families with somewhat higher income may qualify for KidsCare, Arizona's Children's Health Insurance Program, which AHCCCS also runs.

A worked example from Chandler

Take a single adult in Chandler expecting $50,000 of income in 2026. That is about 319% of the 2025 poverty guideline for one person, so the expected contribution is 9.96% of income: about $4,980 a year, or $415 a month.

If the benchmark Silver plan for that person's age and ZIP code cost, say, $600 a month, the credit would be the difference, about $185 a month. The $600 is an illustration only. Your real benchmark depends on your age and county, and HealthCare.gov calculates it for you.

Now move the same person to $64,000 of income. That is above 400% of the poverty level, and the credit drops to zero. That cliff is the single biggest change for early retirees and self-employed people in 2026.

What counts as income

The Marketplace uses modified adjusted gross income (MAGI) for everyone in your tax household. Roughly, that is your adjusted gross income plus any untaxed Social Security, tax-exempt interest and excluded foreign income.

• Wages, self-employment profit, unemployment income and taxable retirement withdrawals count.
• Pre-tax contributions to a 401(k), traditional IRA or HSA lower your MAGI.
• Qualified Roth IRA withdrawals generally do not count.
• Your estimate is for the year of coverage, not the year you just finished.

When a job offer blocks your credit

If you can get employer coverage that is affordable and meets minimum value, you generally cannot get a Marketplace credit. For plan years beginning in 2026, employer coverage counts as affordable when the employee's share for self-only coverage is no more than 9.96% of household income (IRS Rev. Proc. 2025-25).

Since 2023, a separate test applies to family members. Their affordability is judged on the cost of family coverage, not employee-only coverage. That rule change fixed what was called the family glitch, and it means a spouse and children may qualify for credits even when the worker does not.

If someone in your household turns down an affordable employer offer, they generally still cannot get a credit for a Marketplace plan. The test is whether the offer was available and affordable, not whether you accepted it.

How to avoid a surprise at tax time

• Estimate income honestly, and lean high if it is unpredictable.
• Report changes in income or household size to HealthCare.gov within 30 days.
• Keep the Form 1095-A you receive each winter; you need it to file.
• If you take only part of the credit in advance, you can claim the rest when you file.

Cost-sharing reductions: the Silver plan bonus

If your household income is at or below 250% of the poverty level, a Silver plan bought on HealthCare.gov comes with extra savings called cost-sharing reductions. The plan's deductible, copays and out-of-pocket maximum are lowered, and the lower your income, the bigger the reduction.

This is the one situation where the metal level you choose changes what help you receive. If you qualify for cost-sharing reductions and choose a Bronze or Gold plan instead, you keep your premium tax credit but lose the reduced deductible and copays. For people who expect to use care, that Silver upgrade can be worth more than a lower premium.

---

The bottom line

Subsidies can make a Marketplace plan very affordable, but the 2026 rules are stricter than the last few years and the 400% cliff is real. Visit our Individual and Family Health page, then sit down with Viola. She will help you estimate your income, see the credit you qualify for on HealthCare.gov, and compare plans before you commit.