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Tax Credits on the Marketplace

October 26, 2013 Gregory Wald

Some individuals and families shopping on the Health Insurance Marketplace will receive help to pay their health insurance premiums.

Your eligibility will depend upon two main criteria:

1. How much money do you make?

Individuals and families with household incomes at or below 400% of the federal poverty level (FPL) may qualify for a tax credit. That's about $46,000 a year for one person and about $94,000 for a family of four in 2013.

2. Do you have affordable health coverage at work?

If you are offered affordable single coverage at work, you won't be eligible for tax credits, no matter what your income level. The government considers affordable coverage to be an employee's portion of single (employee only) coverage that accounts for no more than 9.5% of the employee's annual income.

Think you might be eligible for tax credits? Find out on our tax credit calculator. The calculator and other resources are available on our health care reform site at

Tax credits will be issued to eligible individuals and families on a sliding scale and can be paid directly to your selected health insurance company.

Here are some examples:


Age: 50

Income: $30,000 (261% of FPL)

Estimated Premium: $4,800

Government Subsidy: -$2,525

Revised Cost of Coverage: $2,275


Family of Two

Age: Enrollee 30; Spouse: 31

Combined income: $80,000 (516% of FPL and not eligible)

Estimated premium: $6,180

Government tax credit: None

Revised coverage cost: $6,180