Retired before 65 and buying a Marketplace plan? From 2026 the premium tax credit stops completely above 400% of the poverty line, and any excess advance credit is paid back in full. One sale can wipe out a year of help. Enter your numbers to see the credit with and without the sale, and the real cost of selling this year.
By Hans Goldstein, EA, founder, Retirement Literacy Foundation. 2026 federal law, every rate sourced below.
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Worked example
A married couple, both 62, in California buys a Marketplace plan for 2026. Their benchmark silver plan is $24,000 a year and their other income is $60,000. They are thinking about selling a rental with a $150,000 gain this year.
| Line | Amount |
|---|---|
| What selling this year costs you | $40,752 |
| Household income without the sale (ACA MAGI) | $60,000 |
| With the sale | $210,000 |
| 400% of the poverty line for 2 people (2026 coverage) | $84,600 |
| Premium tax credit without the sale | $18,322 |
| Premium tax credit with the sale | $0 |
| Credit lost to the sale | $18,322 |
| Federal income tax + NIIT on the gain | $11,835 |
| California tax on the gain | $10,596 |
| Gain that fits under the 400% line this year | $24,600 |
Computed October 13, 2026 with the same engine the calculator uses: 2026 federal brackets (IRS Rev. Proc. 2025-32), state rates as coded for 2026. Illustrative; your numbers will differ.
How it works
Common questions
Only the taxable part of the gain. If the whole gain fits inside the home sale exclusion ($250,000 single, $500,000 married), it is not income for the Marketplace. Gain above the exclusion counts in full.
$62,600 for one person and $84,600 for a household of two (400% of the 2025 poverty guidelines, 48 states and DC). One dollar over and the credit is $0 for 2026 coverage.
An installment sale reports the gain as you are paid (IRC 453), so only that year's share counts toward income. The calculator shows how much gain fits under the line this year.
Yes. From 2026 any excess advance credit is repaid in full when you file. Report the income change to the Marketplace right away to cut the advance payments for the rest of the year.
Yes, all of it, including the part that is not taxed. Tax-exempt bond interest counts too.
Related: The ACA subsidy cliff is back (guide) · IRMAA calculator · Roth conversion window · Home sale capital gains calculator · Estimated tax after a sale · Capital gains tax calculator
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Reviewed for the Retirement Literacy Foundation, a 501(c)(3) education nonprofit. Prepared by Hans Goldstein, EA, retirement educator. Admitted to practice before the IRS. Informational only. Not tax, legal or investment advice. Every figure below cites its source so your CPA or attorney can check it.
Figures are 2026 federal amounts unless stated. Examples are illustrative and rounded; your numbers will differ. By Hans Goldstein, EA, founder, Retirement Literacy Foundation. Last reviewed .
Hans Goldstein is an Enrolled Agent, admitted to practice before the Internal Revenue Service. Not affiliated with or endorsed by the IRS.