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What does Premium Tax Credit mean?

A federal tax credit that can lower the cost of Marketplace coverage when eligibility rules are met.

Illustration — not a plan price

The official Marketplace uses household, income, coverage, and applicable local benchmark information to determine an advance credit.

The actual plan document controls. Verify its definitions, network, exclusions, dates, and amounts before relying on the illustration.

Definitions here are never for sale — no plan is recommended on a comprehension page.

Source: IRS — Premium Tax Credit questions and answers · Verified 2026-08-11 · Reviewed by the MedicalRecords.com editorial team · Last reviewed August 11, 2026

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