You got a raise, picked up a second job, or your self-employment income is running well ahead of last year. Or the opposite happened, and money is tighter than you planned. Either way, the income on your Marketplace application may no longer match reality. Knowing how to update income on HealthCare.gov takes about fifteen minutes, and in 2026 it matters more than it has in years. Here is why, and exactly how to do it.
Why your income estimate matters more now
Your premium tax credit is based on the household income you expect for the year you are covered, not last year's income. When you enroll, the Marketplace uses your estimate to pay part of your premium in advance, straight to your insurer. When you file your federal taxes, the IRS compares that advance credit with the credit your actual income qualifies you for. If you received too much, you owe the difference. If you received too little, you get the rest back.
Two changes have raised the stakes:
- The income cliff is back. The enhanced premium tax credits that applied through 2025 expired, and as of this writing Congress has not restored them. Households with income above roughly four times the federal poverty level generally qualify for no premium tax credit at all. If you estimated just under that line and ended the year above it, all of the advance credit you received can become excess.
- The repayment caps are gone. For tax years before 2026, most households below that income line had a cap on how much excess credit they had to pay back. A 2025 federal law (Public Law 119-21) removed those caps starting with the 2026 tax year, so any excess advance credit is now generally repaid in full, whatever your income.
Put together, an income estimate that is too low can turn into a large, unexpected tax bill the following spring. Our overview of the 2026 ACA subsidy changes explains the cliff in more detail. Exact poverty-level figures and repayment amounts change every year and depend on your household, so confirm your numbers with a tax professional.
How to update income on HealthCare.gov, step by step
Florida and most other states use HealthCare.gov. If your state runs its own Marketplace, the process is similar, but log in to your state's site instead. On HealthCare.gov:
- Log in to your HealthCare.gov account and choose the application you want to update. Make sure you pick the current plan year.
- Click "Report a Life Change" in the menu on the left.
- Choose the type of change, then move through the application and update your income. Correct anything else that has changed too, like household members or your address.
- Review your new eligibility results. They show the savings you now qualify for.
- Finish every item on your To-Do List. If you are given the option to complete your enrollment, do it. HealthCare.gov warns that your changes may not take effect until you do.
If you would rather not do it online, you can call the Marketplace Call Center and a representative can update your application with you. A licensed agent can also walk you through it.
The update corrects your advance credit going forward. It does not rewrite the months already paid, which is why it pays to update as soon as the change happens rather than waiting for Open Enrollment. HealthCare.gov's own guidance is to update your application as soon as possible.
What counts as income on your Marketplace application
The Marketplace uses modified adjusted gross income (MAGI). For many households it is the same as, or very close to, the adjusted gross income on a federal tax return. MAGI adds back a few things, such as non-taxable Social Security benefits, tax-exempt interest and untaxed foreign income. Count income for everyone in your tax household who is required to file, including:
- Wages, salaries and tips
- Net self-employment income, after business expenses
- Social Security benefits, including the non-taxable part
- Retirement and pension distributions
- Unemployment compensation
- Investment, rental and other taxable income
Common mistakes include entering take-home pay instead of gross income, forgetting a spouse's income, and leaving out a one-time retirement withdrawal or a capital gain. If a large withdrawal is on the way, include it in your estimate. It counts for the year you take it.
When to update your income
Report a change whenever your expected income for the year moves meaningfully. Watch for these triggers in particular:
- A raise, a new job, a bonus, or a second source of income
- A job loss, reduced hours, or the end of a contract
- A self-employed year that is running well above or below your estimate
- Marriage, divorce, a new baby, or someone joining or leaving your tax household
- Starting Social Security, a pension, or retirement account withdrawals
- A new offer of health coverage through a job, which can also affect whether you qualify for a credit at all
An update can help you too. If your income dropped, you may qualify for more savings and a lower premium, or even for Medicaid or CHIP depending on your state's rules.
Open Enrollment is the other time to update. For 2027 coverage it runs November 1, 2026, to January 15, 2027, with December 15 the last day to pick a plan that starts January 1. A federal court struck down a rule that would have shortened the window, and the government's appeal is scheduled for argument on October 30, 2026, so check the current dates before you rely on them. If you let your plan renew without updating, the Marketplace carries last year's information forward. Our guide to whether Marketplace insurance automatically renews explains what that means for your 2027 subsidy.
If your income is hard to predict
Gig workers, freelancers, commission earners and small-business owners often cannot know their income in advance. HealthCare.gov's advice is to make your best estimate, then report changes as they happen. A few habits help:
- Check your year-to-date income every quarter against the estimate on your application, and update it if the two are drifting apart.
- If you are close to the income cliff, be careful about estimating low. Some households choose to take less of the credit in advance and claim the rest when they file, which reduces the risk of owing money back. Whether that makes sense for you is a question for a tax professional.
- Keep records of business expenses. Self-employment income counts after expenses, so good records can change the number you report.
If you work for yourself, our guide to self-employed health insurance covers the other options worth comparing.
Don't forget the tax-time step
Updating your income during the year reduces surprises, but it does not replace reconciliation. If you received advance credits, you must file a federal tax return and reconcile them using Form 8962, even if you would not otherwise need to file. Skipping that step can put future help at risk, as we explain in our post on losing a subsidy over unfiled taxes.
If you want help checking your estimate, updating your application, or comparing plans for 2027, a licensed agent can do it with you at no cost. Get a personalized quote to start, or try our subsidy estimator for a rough idea first. Savings depend on your income, household and location, and specific tax questions belong with a tax professional.