What income qualifies for tax credits in Colorado in 2026?
For 2026 coverage through Connect for Health Colorado, federal premium tax credits are generally available to households with income between 100% and 400% of the federal poverty level: $15,650 to $62,600 for one person and $32,150 to $128,600 for a family of four.
The enhanced credits that removed the 400% limit expired at the end of 2025 and had not been restored as of October 2026. In Colorado, most adults with income up to 138% of the poverty level qualify for Health First Colorado (Medicaid) instead of a tax credit.
| Household size | 100% FPL | 138% FPL (Health First Colorado adult limit) | 400% FPL (tax credit limit) |
|---|---|---|---|
| 1 | $15,650 | $21,597 | $62,600 |
| 2 | $21,150 | $29,187 | $84,600 |
| 3 | $26,650 | $36,777 | $106,600 |
| 4 | $32,150 | $44,367 | $128,600 |
| 5 | $37,650 | $51,957 | $150,600 |
How the credit is worked out
Connect for Health Colorado compares your income with the poverty level for your household size, sets the share of income you are expected to pay toward the benchmark Silver plan in your area (2.10% to 9.96% of income in 2026 under IRS Revenue Procedure 2025-25), and pays the rest as a tax credit. Household means everyone on your tax return; income means modified adjusted gross income, not take-home pay.
What changes the answer
Your rating area (the benchmark premium is local), your age, an offer of affordable employer coverage, and Medicaid eligibility. Above 400% of the poverty level there is no federal credit for 2026 coverage. Credits are reconciled on your tax return, so an income estimate that is too low can mean paying some back.
Colorado adds its own help. Colorado Premium Assistance helped more than 176,000 Connect for Health Colorado customers lower their premiums in 2026, and Connect for Health Colorado says that support continues for 2027.
Worked examples at three incomes
A married couple earning $60,000 is at 284% of the poverty level. The 2026 table expects them to put about 9.46% of income, roughly $473 a month, toward the benchmark Silver plan; the credit covers the rest of that plan premium.
A single adult earning $62,000 sits just under the limit at 396%, so the expected share is the 9.96% ceiling, about $515 a month.
A married couple earning $85,000 is at 402%, over the $84,600 line for two, and gets no federal credit for 2026 coverage at all. A few hundred dollars of income can be the difference, which is why a pre-tax retirement or HSA contribution that lowers modified adjusted gross income deserves a look before you estimate.
Shopping for 2027? The lines move up
Coverage for 2027 is measured against the 2026 HHS poverty guidelines: $15,960 for one person, $21,640 for two and $33,000 for four, so the 400% line becomes $63,840, $86,560 and $132,000. The expected share of income toward the benchmark Silver plan rises to 2.15% to 10.22% (IRS Revenue Procedure 2026-26). A couple at $60,000 is at about 277% of the poverty level for 2027 and would be expected to pay about 9.51% of income, roughly $476 a month, toward the benchmark plan.
One rule change matters for both years: starting with tax year 2026, the caps on repaying excess advance credits are gone, so if your income comes in higher than you estimated you repay the whole difference when you file (IRS, repayment caps eliminated). An accurate estimate, and reporting changes to Connect for Health Colorado during the year, matter more than they used to.
What to do next
Open enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027. Run your numbers in our subsidy calculator, then let us compare plans with you in Brighton; Connect for Health Colorado confirms the final credit.
Related questions
What income qualifies for tax credits in Colorado in 2026?
For 2026 coverage through Connect for Health Colorado, federal premium tax credits are generally available to households with income between 100% and 400% of the federal poverty level: $15,650 to $62,600 for one person and $32,150 to $128,600 for a family of four.
Is there an income limit for tax credits in 2026?
Yes. With the enhanced credits expired, the federal credit is generally limited to income up to 400% of the federal poverty level for 2026 coverage.
Who qualifies for Health First Colorado instead?
Most adults 19 to 64 with income up to 138% of the federal poverty level, after the 5% income disregard. Children and pregnant people have higher limits, and CHP+ covers many children above the Medicaid line.
Which poverty guidelines apply to 2026 coverage?
The 2025 HHS guidelines: $15,650 for one person plus $5,500 for each additional person.
Can a retirement or HSA contribution change my tax credit?
It can. Credits are based on modified adjusted gross income, so pre-tax contributions that lower that figure, such as to a traditional IRA, a workplace 401(k) or a health savings account, can raise the credit or bring you back under the 400% line.
Sources
- HHS poverty guidelines (2025) U.S. Department of Health and Human Services
- IRS Revenue Procedure 2025-25 (2026 applicable percentage table) Internal Revenue Service
- Health First Colorado: programs for adults Colorado Department of Health Care Policy and Financing
- Connect for Health Colorado: State solutions to counter rising costs (July 31, 2026) Connect for Health Colorado
- IRS Rev. Proc. 2026-26: 2027 applicable percentage table Internal Revenue Service
- IRS: Repayment caps eliminated for excess advance payments of the premium tax credit Internal Revenue Service
Please note: Headwaters Health and Wealth is not affiliated with, endorsed by, or operating on behalf of Connect for Health Colorado, HealthCare.gov, the Health Insurance Marketplace, or any federal or state government agency. Plan availability, premiums and advance premium tax credits are set by the carriers and the Marketplace.Estimates only. Figures on this page use published plan-year values and the details you enter. They are not a quote, an offer of coverage, or a determination of eligibility. Your final premium and any tax credit are confirmed at enrollment with the carrier or Connect for Health Colorado.
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