Poverty level · threshold
250% of the federal poverty level: the cost-sharing reduction limit
Below this line a silver Marketplace plan comes with a lower deductible and lower copays. Above it, only the premium tax credit is left.
Checked by Radif Partners · Editorial policy · How we calculate
For 2026 Marketplace coverage, 250% of the federal poverty level is $39,125 a year for one person, $52,875 for two and $80,375 for a family of four, because health plans for 2026 are measured against the 2025 guidelines. It is the upper limit of cost-sharing reductions, the extra savings that lower deductibles, copayments and out-of-pocket maximums, and that come only with a silver plan. Up to 250%, a household that picks silver gets both the premium tax credit and those reductions; above it, the credit remains but the plan's cost sharing is the standard one. The same point is a hinge of the 2026 credit table: the expected contribution rises from 6.6% to 8.44% of income between 200% and 250% of poverty, then from 8.44% to 9.96% up to 300%. A single adult right at 250% pays about $275 a month for the benchmark silver plan. In the 2026 poverty table, used for Medicaid and CHIP, 250% is $39,900 for one person.
250% of the 2025 poverty guideline for your household
250% of poverty, per year
$66,625
| Per month | $5,552 |
| Per week | $1,281 |
| 100% guideline (2025) | $26,650 |
The cost-sharing reduction line
Cost-sharing reductions are the second form of Marketplace help, separate from the premium tax credit. According to HealthCare.gov, they lower the deductible, the copayments or coinsurance and the out-of-pocket maximum, and they apply only if you enroll in a silver plan. They are available up to 250% of the poverty guideline, measured on your income estimate for the coverage year. HealthCare.gov illustrates the effect with a silver plan whose $750 deductible could drop to $300 or $500, and an out-of-pocket maximum of $5,000 that could fall to $3,000; the real figures depend on the plan and on how far below the line your income is.
| Household size | 250% per year (2025 chart) | Per month | Benchmark cost at 250%, per month | Alaska, per year | Hawaii, per year |
|---|---|---|---|---|---|
| 1 | $39,125 | $3,260 | $275 | $48,875 | $44,975 |
| 2 | $52,875 | $4,406 | $372 | $66,075 | $60,800 |
| 3 | $66,625 | $5,552 | $469 | $83,275 | $76,625 |
| 4 | $80,375 | $6,698 | $565 | $100,475 | $92,450 |
| 5 | $94,125 | $7,844 | $662 | $117,675 | $108,275 |
| 6 | $107,875 | $8,990 | $759 | $134,875 | $124,100 |
Two bands of the 2026 credit meet here
The premium tax credit makes the benchmark silver plan cost a set share of income, the applicable percentage published in IRS Rev. Proc. 2025-25. Between 200% and 250% of poverty it climbs from 6.6% to 8.44%; between 250% and 300%, from 8.44% to 9.96%. So at exactly 250%, a single adult with $39,125 of income is expected to pay $275 a month. If the benchmark plan costs $600, the credit is about $325 a month. At 300% of poverty, the same adult would pay $390 and get $210. The credit fades gradually; the cost-sharing reductions, by contrast, stop at the line.
That makes 250% one of the few places where a small raise has a visible cost in 2026. A worker who moves from just under to just over the line keeps nearly the same credit but, on a silver plan, loses the reduced deductible and copays. Updating the income estimate on the Marketplace application when pay changes keeps the help aligned with reality, and avoids a credit taken too high, which since tax year 2026 must be repaid in full on the tax return.
250% outside the Marketplace
Several states draw children's coverage near the same point. In the CMS table of eligibility levels, the highest Medicaid or CHIP line for children aged 6 to 18 is between 245% and 255% of poverty in Georgia (247%), Indiana (250%), Kansas (250%), Louisiana (250%) and Tennessee (250%), before the 5-point MAGI disregard. Those limits use the 2026 guideline, $82,500 for a family of four at 250%, not the 2025 one. A family in that range can see its children in CHIP and the parents on a silver plan with reduced cost sharing at the same time. The ACA subsidy calculator computes the credit for your household, the 400% page covers the ceiling of the credit, and the federal poverty level page gives every percentage.