The ACA subsidy cliff in Texas (2026)
Enroll through HealthCare.gov. Here is what the 400% cliff means for Texas residents this year.
Texas runs on the federal HealthCare.gov platform, but the subsidy math itself is federal and identical everywhere: cross 400% of the federal poverty level and the premium tax credit goes to $0, with no phase-out. At an estimated $1,150/month benchmark silver premium for a 60-year-old in Texas, a household that lands just over the line can lose roughly $8,300 a year in subsidy — often more than a car payment, for a single extra dollar of income.
| What | 2026 figure |
|---|---|
| 400% FPL — single person | $62,600 |
| 400% FPL — household of 2 | $84,600 |
| 400% FPL — household of 3 | $106,600 |
| 400% FPL — household of 4 | $128,600 |
| State exchange | HealthCare.gov |
| Est. benchmark silver premium (age 60)* | $1,150/mo |
| Est. subsidy at stake near the cliff* | ~$8,300/yr |
*Estimates for education. Exact premiums depend on your county, age, and plan — confirm on HealthCare.gov.
Texas coverage snapshot
Texas residents shop for ACA plans through HealthCare.gov, the federal HealthCare.gov platform. Texas has not expanded Medicaid, so residents earning below the poverty line often fall into the coverage gap — too much income for Medicaid, too little to qualify for marketplace subsidies.
Over the line in Texas? Your options
The strategies are federal, so they work the same in Texas: lower your MAGI under 400%, HSA + Bronze plan, or — if self-employed — an ICHRA.
Frequently asked
What is the ACA subsidy cliff income limit in Texas for 2026?
The cliff is 400% of the federal poverty level, the same in all 48 contiguous states: about $62,600 for one person, $84,600 for a household of two, and $128,600 for a household of four for 2026 coverage. Above that, the premium subsidy in Texas drops to $0 — there is no phase-out.
Where do I enroll in Texas?
Texas residents enroll through HealthCare.gov (https://www.healthcare.gov/), the federal HealthCare.gov platform. Open Enrollment for 2027 coverage begins November 1, 2026.
Has Texas expanded Medicaid?
Texas has not expanded Medicaid, so residents earning below the poverty line often fall into the coverage gap — too much income for Medicaid, too little to qualify for marketplace subsidies. This matters most for households near the bottom of the income range — the subsidy cliff itself is a federal rule and applies the same way in every state once you’re shopping on the marketplace.
Talk to a licensed broker about your options
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