2026 federal poverty guidelines

The federal government releases an updated federal poverty guidelines (FPG) chart every January. Knowing whether your household income falls below the FPG helps you determine your eligibility for several types of federal aid, including Medicaid.

This article will answer common questions about federal poverty level guidelines, including what the 2026 guidelines are and how the government calculates them.

In this blog post, you’ll learn:

• How the 2026 federal poverty guidelines compare to previous years
• How the government calculates the guidelines and adjusts them annually for inflation
• How the IRS and other agencies use the federal poverty guidelines to determine eligibility for temporary assistance programs such as Medicaid and premium tax credits

What are the federal poverty guidelines?

The federal poverty guidelines, commonly called the federal poverty level (FPL), measure a household's poverty status based on its annual income. FPGs don’t look at just the income you take home. Instead, the federal government compares your modified adjusted gross income (MAGI) to the FPG to determine eligibility for various programs.

MAGI includes all of your income sources, like:

• Salaries
• Interest
• Social Security

Where you fall on the FPG changes yearly. The federal government adjusts the guidelines annually for inflation. The Omnibus Budget Reconciliation Act of 1981 (OBRA) (42 U.S.C. 9902(2)) requires the United States Department of Health and Human Services (HHS) to publish the poverty guidelines at the beginning of each year.

How does the government calculate the federal poverty guidelines?

The Department of Health and Human Services calculates the FPGs using the United States Census Bureau's poverty thresholds released the previous year.

The government determines the poverty threshold based on a family's total income. If a household's total income is below the federal poverty threshold, the government considers the family to be in poverty. The threshold is calculated using income before taxes, and the DHHS updates it for inflation using the Consumer Price Index.

Once the Census Bureau releases its numbers for the previous year, the Department of Health and Human Services uses them to calculate the federal poverty level for each family size.

There are some key differences between the FPGs and the poverty thresholds. The thresholds are primarily used for statistical purposes and include a matrix of thresholds by family size, number of children, and more.

The Census Bureau rounds the thresholds to the nearest dollar. The HHS guidelines, however, are for administrative purposes. HHS rounds the guidelines to the nearest multiple of $10.

How does the government use the federal poverty guidelines?

The DHHS, the IRS, and many state governments use federal poverty guidelines to determine your financial eligibility for several federal programs, including Medicaid, premium tax credits, cost-sharing reductions, and others. Let's go over each in more detail.

Medicaid eligibility

Your income must be no more than 138% of the FPL to qualify for Medicaid in states with expanded Medicaid coverage. That number will look slightly different for everyone, depending on where you live and how many people you have in your household.

For example, a single adult in California must make less than $22,025 in 2026 to qualify for Medi-Cal, California’s state Medicaid program. However, an individual in Hawaii must earn less than $25,345 to qualify.

You can check the 2026 FPG guidelines chart below to see if you're eligible for Medicaid based on your home state and household size, if your state has expanded Medicaid.

If you reside in Puerto Rico, Medicaid uses a local poverty level instead of the FPL to determine eligibility. Additionally, the federal matching assistance percentage (FMAP) rate is applied until it reaches the Medicaid ceiling or the Affordable Care Act (ACA) funds granted to Puerto Rico run out.

If you don’t live in a state with expanded Medicaid eligibility, you won’t qualify for the benefit due to low income alone.

Premium tax credits for health insurance

Another important use of the FPGs is determining eligibility for Marketplace subsidies for individual health insurance. Depending on your income (and the affordability of any employer-sponsored health benefits), the health insurance you purchased through the federal or state-run marketplace may be eligible for premium tax credits.

The ACA created premium tax credits to help individuals pay for their marketplace health insurance premiums. You can choose to receive an advance credit each month or a credit on your income tax returns.

From 2021 through 2025, enhanced premium tax credits expanded eligibility and increased subsidy amounts under the American Rescue Plan and the Inflation Reduction Act. These enhancements removed the 400% FPL income cap and limited the cost of benchmark coverage to a percentage of income. This allowed many lower-income enrollees to qualify for health plans with little to no monthly premiums.

However, these enhanced premium tax credits expired on January 1, 2026. As a result, premium tax credit rules have reverted to the original ACA structure.

For 2026 health coverage:

• Premium tax credits are generally available only to households with incomes between 100% and 400% of the FPG.
• Households above 400% of the FPG are no longer eligible for subsidies.
• Premium contributions for lower-income households may be significantly higher than in previous years.
• Premium tax credit eligibility is based on the previous year’s FPG thresholds and the current year’s estimated income. This is because the previous thresholds were the most current during the annual Open Enrollment period.

If you qualify for Medicaid or Medicare, or other minimum essential coverage (MEC), you aren’t eligible for these tax credits¹.

Congress could still pass an extension of the enhanced premium tax credits in 2026. Lawmakers have introduced multiple bills, though none have passed both chambers of Congress as of February 2.

Other programs

Determining eligibility for Medicaid and premium tax credits are two primary reasons the IRS and other agencies will use federal poverty guidelines. However, several other programs are available to low-income families who fall below a certain point on the FPL.

Here’s a list of programs you may qualify for depending on your income:

• Supplemental Nutrition Assistance Program (SNAP): More commonly known as food stamps or the Food Stamp Program, SNAP provides eligible people with a benefits card to buy groceries². You may qualify for SNAP benefits if:
  • • Your gross monthly income is at or below 130% of the FPG
    • Your net income is at or below 100% of the poverty line
    • And your assets fall below certain limits³

• Children’s Health Insurance Program (CHIP): CHIP offers free or low-cost medical and dental care to uninsured children up to age 19 whose family income falls below a specific limit⁴.

• Low-Income Home Energy Assistance Program (LIHEAP)⁵: LIHEAP helps eligible households pay for heating and cooling costs and may also cover energy-related home repairs⁵.
• Temporary Assistance for Needy Families (TANF): TANF programs provide cash assistance for a limited time to low-income families working toward self-sufficiency⁶.
• Head Start: Head Start offers early childhood education, health services, nutrition support, and family engagement programs at no or low cost⁷.
• National School Lunch Program: The National School Lunch Program provides free or reduced-cost lunches to children in need—the program calculates reduced-price meals using 185% of FPG and free lunches using 130% FPL⁸.
• The School Breakfast program also uses the 185% and 130% levels.

• Family Planning Services: The Title X Family Planning Program allows those with incomes below 100% of the FPG to access family planning and preventive services.

• Cost-sharing reductions: If you earn less than 250% of the FPL and enroll in a silver Marketplace plan, you may be eligible for a CSR.

However, not every federal program uses FPGs to determine eligibility.

Some “major-means-tested programs” that don’t use the FPGs include:

• Supplemental Security Income (SSI)
• Earned Income Tax Credit (EITC)
• Section 8 low-income housing

Some state and local governments also use the federal poverty thresholds from the U.S. Census Bureau or DHHS guidelines to determine program eligibility. Private companies, such as utilities and charitable agencies, may also use them to support assistance programs for people with low incomes.

What are the current poverty guidelines for 2026?

You can find the current federal income guidelines in the tables below. FPGs differ between the lower 48 states and Alaska, Hawaii, and the District of Columbia⁹.

Remember, ACA marketplace plans effective in 2026 use the 2025 FPG numbers to determine eligibility for premium tax credits and cost-sharing reductions.

The Medicaid eligibility numbers are estimates found by multiplying the 2026 FPL by 138% for states with Medicaid expansion. Actual numbers for official federal use may vary slightly, depending on state rules and other factors.

In non-expansion states, Medicaid eligibility may be lower than 138% FPG or based on other criteria.

Federal poverty levels for the 48 contiguous states and D.C.

Due to administrative practices by the Office of Economic Opportunity in the late 1960s, Alaska and Hawaii have separate poverty measures from those of the other states. These states' poverty guidelines are higher because of the higher cost of living in those areas.

FPG for Alaska in 2026

FPG for Hawaii in 2026

How can individuals use the federal poverty guidelines?

Individuals often need to use the FPGs to determine eligibility for programs, such as premium tax credits, cost-sharing reductions, and Medicaid or CHIP. Knowing where your household income falls compared to the FPL can help you estimate your healthcare costs, avoid surprises at tax time, and choose the right coverage option.

To calculate your eligibility for federal subsidies and programs, follow these three simple steps:

1. Determine your household size
• Include all individuals within your household according to tax guidelines.
2. Find the applicable FPG number
• For ACA premium tax credit eligibility in 2026, use the 2025 FPG numbers.
• For Medicaid or CHIP in 2026, use the 2026 FPG numbers if your state has adopted Medicaid expansion.
3. Compare your projected MAGI to the FPG number
   
   
• Compare your estimated household MAGI for the year to the relevant FPG thresholds.
  
  
• Based on where your income falls — such as 138%, 250%, or 400% of the FPL — you can determine your eligibility for subsidies, cost-sharing reductions, or Medicaid.

Are there other ways to save on health insurance?

While the federal poverty guidelines can help you understand your eligibility for premium tax credits and other discounts more easily, they only work for some. If you don't qualify for advance premium tax credits or Medicaid, you may be wondering if there are other ways you can save on insurance costs.

See if your employer offers health benefits

Employers often offer traditional group health insurance policies, but organizations have other benefit options. Health reimbursement arrangements (HRAs) and health stipends are smart ways to save on health coverage while supporting employees.

Through a stand-alone HRA, your employer can reimburse you for the cost of your individual health insurance premiums and other qualifying medical expenses 100% tax-free. Your employer might also offer a stipend, which provides taxable funds for medical items, services, or premiums.

Open an HSA

If you enroll in a high deductible health plan (HDHP), you can also open a health savings account (HSA) to save money for medical expenses. HSAs are tax-advantaged savings accounts that let you save money for future medical expenses. Your employer can contribute to your HSA, and you can also contribute, whereas only employers fund an HRA or stipends.

Conclusion

Understanding federal poverty guidelines and how federal agencies like the IRS use them is a crucial step in getting more affordable health insurance, housing, education, and more. Depending on your family size and federal poverty level, you could be eligible for benefits such as premium tax credits and Medicaid.

With the expiration of enhanced premium tax credits, eligibility and subsidy amounts have returned to the ACA’s original income limits, making it even more important for households to accurately compare their projected income to the applicable FPGs when researching coverage options.

This blog article was originally published on March 17, 2021. It was last updated on February 2, 2026.

References

1. IRS eligibility for the premium tax credit
2. SNAP
3. Broad-Based Categorical Eligibility
4. CHIP
5. LIHEAP
6. TANF
7. Headstart
8. National School Lunch Program
9. 2026 Poverty guidelines