Federal Poverty Level (2026)
Annual HHS guidelines that determine ACA Marketplace subsidy eligibility — laid-off workers often qualify for substantial premium tax credits.
Current value (2026)
$15,960
Federal Poverty Level — 2-person household (contiguous 48 states + DC): $21,640
Federal Poverty Level — 4-person household (contiguous 48 states + DC): $33,000
Primary source
Historical values
| Year | Value |
|---|---|
| 2026 | $15,960 |
What this means if you were laid off
The federal poverty level is the annual income threshold HHS uses to determine eligibility for Medicaid, CHIP, and ACA Marketplace subsidies. For 2026, the guideline is $15,960 for a 1-person household, $21,640 for a 2-person household, and $33,000 for a 4-person household in the contiguous 48 states and DC, per HHS ASPE (FR-2026-01-15/2026-00755). Alaska and Hawaii have higher guidelines.
The guidelines matter most at layoff because the ACA premium tax credit is calculated as a percentage of FPL. If your total income for the year falls between 100% and 400% FPL, you qualify for subsidies on the Marketplace. Losing employer health coverage is a qualifying life event that opens a 60-day special enrollment window right when you need it.
For a single adult in 2026, 400% FPL is $63,840. If your income for the year stays below that due to the layoff, you qualify for some level of subsidy. If you earn less than 138% FPL ($22,025 for a single adult in an expansion state), you likely qualify for Medicaid, which is free or near-free coverage.
The income counted for subsidy purposes is your modified adjusted gross income for the full calendar year. In a layoff year, that includes wages from both before and after the layoff, plus any severance. A high-earning first half of the year reduces your subsidy even if your second half income is zero.
Marketplace premium tax credits are also available through advance payments. Your insurer receives the credit directly, reducing your monthly premium. Reconcile the estimate against your actual income when you file to confirm the correct amount was applied.
Frequently asked questions
- What is the federal poverty level for 2026?
- $15,960 for a 1-person household, $21,640 for a 2-person household, and $33,000 for a 4-person household in the contiguous 48 states and DC, per HHS ASPE (2026 guidelines). Guidelines for Alaska and Hawaii are higher.
- How does the FPL affect my health insurance options after a layoff?
- ACA Marketplace premium tax credits are available for households with incomes between 100% and 400% FPL. A layoff that reduces your annual income into this range may make Marketplace coverage significantly cheaper than COBRA.
- Does severance count as income for ACA subsidy purposes?
- Yes. Severance paid as W-2 wages counts toward your modified adjusted gross income (MAGI) for ACA subsidy calculations. The subsidy is based on your projected annual income for the full year, not just your income after the layoff.
- What if my income is below 100% FPL?
- In states that expanded Medicaid under the ACA, income below 138% FPL generally qualifies for Medicaid rather than Marketplace subsidies. In non-expansion states, there may be a coverage gap for incomes below 100% FPL.
- Are FPL guidelines the same in every state?
- No. Alaska and Hawaii have higher guidelines. The figures on this page apply to the contiguous 48 states and DC.
See your insurance options after the layoff
The calculator estimates your potential ACA subsidy eligibility based on your income and household.
Calculate your severanceLast verified: 2026-05-04. Not legal, financial, or tax advice. Methodology.