2022 Premium Tax Credit
For 2022, the Premium Tax Credit is 0% (Lowest applicable percentage) and 8.5% (Highest applicable percentage).
Effective 2022-01-01Source: Rev. Proc. 2021-36 (IRS)Verified 2026-08-29
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)
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%