Glossary · Marketplace

What is a premium tax credit?

The premium tax credit lowers your monthly Marketplace plan premium. It is based on the household information and estimated income on your application.

Definition and figures from HealthCare.gov glossary, checked October 23, 2026. This page explains the term; it does not recommend a plan.

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Premium tax credit: the facts

ItemFactSource
Based onHousehold information and estimated incomeHealthCare.gov glossary: Premium tax credit
BenchmarkThe second lowest cost Silver plan premiumHealthCare.gov glossary: Second lowest cost Silver plan (SLCSP)

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What does premium tax credit mean in health insurance?

The premium tax credit lowers your monthly Marketplace plan premium. It is based on the household information and estimated income on your application.

Source: HealthCare.gov glossary: Premium tax credit; HealthCare.gov glossary: Second lowest cost Silver plan (SLCSP). Data as of October 23, 2026. Last updated October 23, 2026. How we source data. Spotted an error? Send a correction.

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