Subsidy Cliff
Definition current for the 2026 plan year · Last reviewed July 2026
In one sentence: The 400%-of-FPL income line where ACA subsidies end entirely in 2026 — $1 over means $0 in help.
The subsidy cliff is the sharp edge at 400% of the federal poverty level — $62,600 for a single person, $84,600 for a couple, $128,600 for a family of four in 2026 (higher in Alaska and Hawaii). Below it, the benchmark plan is capped at 9.96% of income. One dollar above it, the cap — and the entire subsidy — disappears.
The cliff existed from 2014–2020, was suspended 2021–2025 by the enhanced credits, and returned January 1, 2026 when they expired. It hits hardest for older enrollees (premiums up to 3× the young-adult rate) and residents of high-premium states: a 60-year-old couple just over the line in a high-cost state can face $15,000+/year in lost subsidies.
Because the line is measured in MAGI, not salary, it's manageable: retirement and HSA contributions pull income back under it. See the cliff survival guide and check your distance from the edge in the calculator.