2022 Premium Tax Credit
For 2022, the Premium Tax Credit figures are 0% (Lowest applicable percentage) and 8.5% (Highest applicable percentage).
Effective 2022-01-01Source: Rev. Proc. 2021-36 (IRS)Verified 2026-09-02
Compared with 2021
Every figure on this page is unchanged from 2021.
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Lowest applicable percentage | 0% | 0% | +0% |
| Highest applicable percentage | 8.5% | 8.5% | +0% (+0.0%) |
Who it applies to
Anyone claiming the premium tax credit for a taxable year beginning in 2022 uses this table. Household income as a share of the Federal poverty line picks the band, and the band's applicable percentage is the share of household income the taxpayer is expected to contribute towards the benchmark plan. In the lowest band that expected contribution is 0%, so the credit covers the whole benchmark premium. In the top band it is 8.5%, and because that band is open ended the credit does not stop at an income cliff for this year.
What changed this year, and why
For taxable years beginning in 2022 the applicable percentage table is the one enacted by the American Rescue Plan Act rather than an indexed table. Rev. Proc. 2021-36 states it, and it is a different shape from the indexed schedule: the bands are redrawn, indexing is suspended, the lowest band is 0%, and the schedule reaches 8.5% in a top band that has no upper income limit. Under the indexed table the top band stopped at a fixed multiple of the Federal poverty line, and household income above it produced no credit at all.
Common questions
- What is the premium tax credit applicable percentage for 2022?
- For taxable years beginning in 2022 the applicable percentage table under § 36B starts at 0% for the lowest household income band and reaches 8.5% in the top band, which has no upper income limit.
- Why is the 2022 table different from the indexed one?
- The American Rescue Plan Act added a fixed table to § 36B for taxable years beginning in 2021 and 2022 and suspended indexing for those years. Rev. Proc. 2021-36 states that table for 2022, so the figures are set by statute rather than by the usual annual indexing.
- Does a 0% applicable percentage mean free coverage?
- It means the expected contribution towards the benchmark plan is 0% of household income for taxpayers in the lowest band, so for that band the credit covers the benchmark premium in full. A plan that costs more than the benchmark still costs the difference.
- Where is the 2022 table published?
- In Rev. Proc. 2021-36, issued by the IRS, which provides the applicable percentage table for taxable years beginning in 2022 for the purposes of § 36B.
Who counts as an applicable taxpayer
To claim the 2022 Premium Tax Credit, you must be an applicable taxpayer. Generally, you meet this definition if your household income for the year is at least 100% of the federal poverty line for your family size and no one else can claim you as a dependent. If you were married at the close of 2022, you are also required to file a joint income tax return with your spouse in order to be an applicable taxpayer, unless you satisfy one of the limited exceptions for married persons living apart or for victims of domestic abuse or spousal abandonment. Individuals who do not meet these conditions, including most married taxpayers who file a separate return without qualifying for an exception, are not eligible to take the credit on their 2022 return.
Applicable taxpayer. You must be an applicable taxpayer to take the PTC. Generally, you are an applicable taxpayer if your household income for 2022 (described earlier) is at least 100% of the federal poverty line for your family size (provided in Tables 1-1, 1-2, and 1-3) and no one can claim you as a dependent for 2022. In addition, if you were married at the end of 2022, you must file a joint return to be an applicable taxpayer unless you meet one of the exceptions described under Married taxpayers, later.
2022 Instructions for Form 8962, Premium Tax Credit (IRS)
Household income is not the same as your AGI
For Premium Tax Credit purposes, household income is not the same as the adjusted gross income reported on your tax return. Household income is defined as the modified adjusted gross income (modified AGI) of you and your spouse if you file a joint return, plus the modified AGI of each dependent you claim who is required to file a tax return because his or her own income meets the filing threshold. Modified AGI starts with the AGI on your return and then adds back certain amounts that are not subject to tax, such as foreign earned income, tax-exempt interest, and the portion of social security benefits that is excluded from taxable income. This means your household income for the credit can be higher than the AGI figure you report to the IRS, and dependents' modified AGI is counted only when they must file and is excluded when they file solely to claim a refund of withheld tax.
Household income. For purposes of the PTC, household income is the modified adjusted gross income (modified AGI) of you and your spouse (if filing a joint return) (see Line 2a, later) plus the modified AGI of each individual whom you claim as a dependent and who is required to file an income tax return because his or her income meets the income tax return filing threshold (see Line 2b, later). Household income does not include the modified AGI of those individuals whom you claim as dependents and who are filing a 2022 return only to claim a refund of withheld income tax or estimated tax.
2022 Instructions for Form 8962, Premium Tax Credit (IRS)
The second lowest cost silver plan sets the credit
Your monthly Premium Tax Credit is based on the applicable second lowest cost silver plan (SLCSP) premium, not on the plan you actually enrolled in. The applicable SLCSP premium is the premium for the second lowest cost silver plan offered through the Marketplace where you reside that applies to your coverage family. This benchmark amount is used to figure your monthly contribution, which is the share of premium you are expected to pay, calculated using the applicable percentage of your household income. For 2022, the applicable percentage ranges from a lowest applicable percentage of 0% to a highest applicable percentage of 8.5% of household income. Your monthly credit is then the lesser of your actual enrollment premiums or the applicable SLCSP premium minus your monthly contribution. The SLCSP premium is generally reported on Form 1095-A, Part III, column B, but may need to be corrected if your circumstances changed during the year.
Applicable SLCSP premium. The applicable SLCSP premium is the second lowest cost silver plan premium offered through the Marketplace where you reside that applies to your coverage family (described earlier). The SLCSP premium is not the same as your enrollment premium, unless you enroll in the applicable SLCSP.
2022 Instructions for Form 8962, Premium Tax Credit (IRS)
Paying back advance credit, and the cap on it
When the advance premium tax credit paid on your behalf during 2022 exceeds the credit you are actually entitled to based on your final income, you must repay the difference as excess APTC. However, the amount you owe back may be limited based on your household income as a percentage of the federal poverty line. If your household income for the year falls below 400% of the federal poverty line, the repayment is capped at a fixed dollar amount from the IRS repayment table, which varies by filing status and income band. If your household income reaches 400% or more of the federal poverty line, there is no repayment limitation and you must repay the entire excess. Married taxpayers filing separately under an approved exception are subject to the repayment caps separately based on the household income reported on each return.
If your entry on Form 8962, line 5, is 400 or more, there is no repayment limitation. You must repay the amount shown on line 27. Leave line 28 blank and enter the amount from line 27 on line 29.
2022 Instructions for Form 8962, Premium Tax Credit (IRS)
Filing separately usually disqualifies you
If you are considered married for federal income tax purposes, you are generally required to file a joint return with your spouse in order to claim the Premium Tax Credit. If you file using the married filing separately status and do not qualify for one of the two narrow exceptions, you are not treated as an applicable taxpayer and you cannot take the credit at all. The two exceptions are for certain married persons who live apart and qualify to file as head of household, and for victims of domestic abuse or spousal abandonment who are living apart from their spouse at the time they file. Taxpayers who file married filing separately without meeting either exception must generally repay all of the advance premium tax credit paid for coverage in their tax family. Even when an exception does apply, the repayment limitations that cap how much advance credit must be paid back may still apply based on household income.
Married filing separately. If you file as married filing separately and are not a victim of domestic abuse or spousal abandonment (see Exception 2—Victim of domestic abuse or spousal abandonment under Married taxpayers above), then you are not an applicable taxpayer and you cannot take the PTC. You must generally repay all of the APTC paid for a qualified health plan that covered only individuals in your tax family.
2022 Instructions for Form 8962, Premium Tax Credit (IRS)
A change in income or family should be reported right away, not held for tax time
For 2022, the lowest applicable percentage used to figure the Premium Tax Credit is 0% and the highest applicable percentage is 8.5%. These percentages are applied to your household income to determine how much of the benchmark premium you are expected to pay out of pocket. If your income is very low, the 0% rate means you pay nothing toward the benchmark premium and the credit covers the full cost. At the other end, no one pays more than 8.5% of household income for the benchmark plan. You should report any change in income or family size to the Marketplace right away rather than waiting until tax time, so that advance payments of the credit can be adjusted to match your actual circumstances. Reporting promptly helps avoid getting too much or too little credit when you reconcile on your return.
Report changes in circumstances when you re-enroll in coverage and during the year. If APTC is being paid for an individual in your tax family (described later) and you have had certain changes in circumstances (see the examples later), it is important that you report them to the Marketplace where you enrolled in coverage. Reporting changes in circumstances promptly will allow the Marketplace to adjust your APTC to reflect the
2022 Instructions for Form 8962, Premium Tax Credit (IRS)
APTC forces a return even when your income wouldn't otherwise require one
For 2022, if advance payments of the Premium Tax Credit (APTC) were made for you or any member of your tax family, you must file a federal income tax return and attach Form 8962 to reconcile the credit, even if your income is too low to otherwise require a return. You must use Form 1040, 1040-SR, or 1040-NR; you cannot file Form 1040-SS or 1040-PR. The lowest applicable percentage for 2022 is 0% and the highest applicable percentage is 8.5%. These percentages cap how much of your household income the IRS expects you to pay toward the benchmark plan. Reconciling on Form 8962 compares the APTC actually paid on your behalf during the year with the credit you are entitled to based on your actual household income and family size. If advance payments exceeded your entitlement, you repay the difference; if they fell short, you receive the balance as an additional credit.
If any of the circumstances above apply to you, you must file an income tax return and attach Form 8962 even if you are not otherwise required to file. You must use Form 1040, 1040-SR, or 1040-NR.
2022 Instructions for Form 8962, Premium Tax Credit (IRS)
An affordable QSEHRA from your employer can wipe out the credit for that month
For 2022, if you are covered under a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) that your employer offers, the affordability of that arrangement determines whether you can claim the Premium Tax Credit for that month. If the QSEHRA is affordable for a given month, you are not allowed any PTC for that month at all. The affordability test compares the monthly permitted benefit your employer provides against the cost of self-only Marketplace coverage. If the QSEHRA is unaffordable for a month, you may still claim a reduced credit: you must reduce the monthly PTC by the monthly permitted benefit amount (but not below zero) and note "QSEHRA" in the margin of page 1 of Form 8962. The lowest applicable percentage for 2022 is 0% and the highest applicable percentage is 8.5%, which are used to figure the credit for months when the QSEHRA is unaffordable.
If the QSEHRA is affordable for a month, no PTC is allowed for the month. If the QSEHRA is unaffordable for a month, you must reduce the monthly PTC (but not below -0-) by the monthly permitted benefit amount and you must enter “QSEHRA” in the top margin on page 1 of Form 8962 to explain your entry and avoid delay in the processing of your return.
2022 Instructions for Form 8962, Premium Tax Credit (IRS)
A wrong benchmark premium on your Form 1095-A does not excuse using it
For 2022, the second-lowest cost silver plan (SLCSP) premium reported by the Marketplace on Form 1095-A is the benchmark used to figure the Premium Tax Credit. If events during the year - such as a move, a change in family members enrolled, or an individual in the tax family dying - alter the correct SLCSP premium, or if you otherwise have reason to believe the Marketplace reported the wrong applicable SLCSP premium, you must determine the correct applicable SLCSP premium for the months affected. You cannot simply use the figure from Form 1095-A when you know it is wrong. Publication 974 and the HealthCare.gov Tax Tool provide guidance on finding the correct premium. If the correct SLCSP premium varies from month to month, you must use the monthly calculation on lines 12 through 23 of Form 8962 rather than the annual totals. The lowest applicable percentage for 2022 is 0% and the highest applicable percentage is 8.5%.
If any of the above apply and you did not notify the Marketplace or if you have reason to believe the Marketplace reported the wrong applicable SLCSP premium, determine the correct applicable SLCSP premium for the months affected. See Pub. 974 for information on determining the correct applicable SLCSP premium or, if you enrolled through the federally facilitated Marketplace, go to HealthCare.gov/Tax-Tool/.
2022 Instructions for Form 8962, Premium Tax Credit (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2021-36 (IRS)
- Lowest applicable percentage
Initial percentage Final percentage Less than 150% 0.00% 0.00%
- Highest applicable percentage
At least 400% and higher 8.50% 8.50%