Quick answer: The second lowest cost Silver plan (SLCSP), also called the benchmark plan, is the second-cheapest Silver plan available in your area for the people enrolling. Your ACA premium tax credit equals the benchmark premium minus the share of income you are expected to contribute. It is the number that determines how big your subsidy is, even if you pick a different plan.
Most people shop by comparing plans, but the benchmark is working behind the scenes the whole time. Here is how it works, with a worked example, where to find your number, and why it can change from year to year.
How the Benchmark Plan Sets Your Subsidy
The Marketplace finds the second-lowest-cost Silver plan available to your household in your rating area, based on the ages of everyone covered on the application. It then subtracts your expected contribution, which is a percentage of your income. What is left is your monthly premium tax credit. For 2027 that percentage runs from 2.15% of income at the lowest incomes to 10.22% at 300% to 400% of the federal poverty level, as published by the IRS in Revenue Procedure 2026-26.
Premium tax credit = benchmark premium minus your expected contribution.
You can apply that credit to any plan on the Marketplace, at any metal level. It cannot be more than the premium of the plan you choose.
A Worked Example
These premiums are assumptions for illustration, not quotes. Take a single adult with income of $47,880, which is 300% of the 2026 federal poverty level. The expected contribution is 10.22% of income, about $4,893 a year or $408 a month. Assume the benchmark Silver plan costs $700 a month.
| Step | Monthly amount |
|---|---|
| Benchmark Silver plan premium (assumed) | $700 |
| Minus expected contribution (10.22% of income) | $408 |
| Premium tax credit | $292 |
The $292 credit then lowers whichever plan you choose:
| Plan chosen (assumed premium) | You pay after the credit |
|---|---|
| Bronze plan at $450 | $158 |
| Benchmark Silver plan at $700 | $408 |
| Gold plan at $820 | $528 |
If the benchmark in this example cost only $400, the credit would be $0, because it would be below the $408 expected contribution. That is why the same income can produce a large credit in one county and almost none in another.
How the Credit Changes With Income
Using the same assumed $700 benchmark, here is how the credit shrinks as income rises for a single adult. The percentages come from the IRS table in Revenue Procedure 2026-26, shown in our ACA subsidy eligibility guide.
| Income (% of poverty level) | Yearly income (single adult) | Expected contribution per month | Monthly premium tax credit |
|---|---|---|---|
| 150% | $23,940 | $86 | $614 |
| 200% | $31,920 | $180 | $520 |
| 250% | $39,900 | $288 | $412 |
| 300% | $47,880 | $408 | $292 |
| 400% | $63,840 | $544 | $156 |
| Above 400% | Above $63,840 | Not applicable | $0 |
Between the points shown, the percentage rises gradually, so the credit falls gradually. Amounts are rounded to the nearest dollar and assume the same benchmark premium at every income. In practice your benchmark depends on your county and the ages of the people covered.
Why Your Benchmark Can Change
- Where you live. The benchmark is set by rating area, so moving counties or states changes it.
- Who is covered. Premiums depend on age, so adding or removing a household member changes the benchmark for your application.
- What insurers charge. If the second-lowest Silver plan gets more expensive or a carrier leaves the market, the benchmark changes. A higher benchmark increases your credit, even if the price of your own plan stays the same.
- Your income. The benchmark does not depend on income, but your expected contribution does, so the credit still moves when your income does.
Benchmark, Lowest-Cost Silver and Cheapest Plan: Not the Same Thing
| Term | What it is | What it is used for |
|---|---|---|
| Second-lowest-cost Silver plan (benchmark) | The second-cheapest Silver plan in your rating area for the people covered | Sets your premium tax credit |
| Lowest-cost Silver plan | The cheapest Silver plan in your rating area | Used to test whether an ICHRA offer is affordable for an employee |
| Cheapest plan overall | The lowest-premium plan at any metal level, usually Bronze | Not used to calculate your credit |
The ICHRA test is why employers can be looking at a different Silver plan than their employees. Our guide to ICHRA for small business explains how that works.
Why a Silver Plan Still Matters
The credit works on every metal level, but cost-sharing reductions apply only to Silver plans. If your income is low enough to qualify, a Silver plan can offer lower deductibles and out-of-pocket costs than a Bronze plan. Our 2027 Open Enrollment checklist shows how to compare total yearly cost rather than just the premium.
Where to Find Your SLCSP Premium
If you had Marketplace coverage, your Form 1095-A shows the benchmark in Part III, Column B, titled “Monthly second lowest cost Silver plan (SLCSP) premium.” You use it with Form 8962 to reconcile the advance credit you received against the credit you qualify for based on your final income. Column B should not show zero or be blank for any month someone in your household had Marketplace coverage. If it does, HealthCare.gov explains how to find the correct amount.
What Happens at Tax Time
Your advance credit is an estimate. When you file, Form 8962 compares it with the credit you qualify for based on your final income. If the advance credit was too small, the difference comes back to you as a refundable credit. If it was too large, you repay the difference.
As an illustration, suppose you received $3,500 in advance credits but your final income supports only $2,000. Starting with tax year 2026 there is no cap on this repayment, so you would generally owe the full $1,500. That is why a careful income estimate matters.
A Short Checklist Before You Enroll
- Confirm that everyone in your household is on the application, with the right birth dates.
- Check that your ZIP code and county are correct, since they set your rating area.
- Compare the benchmark premium on your renewal notice with last year’s.
- Remember that you can apply the credit to any plan, not only the benchmark Silver plan.
What Is Different for 2027
- The enhanced subsidies expired, so expected contributions are higher and there is no credit above 400% of the poverty level.
- Starting with tax year 2026, there is no cap on repaying excess advance credits, so the benchmark and income estimate you use matter more.
- Open Enrollment for 2027 starts November 1 on HealthCare.gov.
For the income limits and the full table of percentages, see ACA subsidy eligibility for 2027. If you have an employer offer, our guide to Marketplace vs. employer coverage explains how that can affect your credit.
Get Your Actual Numbers
The benchmark depends on your county and household, so a rule of thumb will not tell you your credit. All Solution Plus can run your numbers before Open Enrollment and compare plans from multiple carriers at no cost to you. You can also browse Marketplace plan options.
Talk to a licensed agent about your subsidy →
Frequently Asked Questions
What does SLCSP mean?
SLCSP stands for second lowest cost Silver plan. It is the benchmark plan the Marketplace uses to calculate your premium tax credit.
Is the benchmark plan the cheapest Silver plan?
No. It is the second-cheapest Silver plan available in your area for the people enrolling, not the cheapest one.
Can I use my premium tax credit on a Bronze or Gold plan?
Yes. The credit is based on the benchmark Silver plan, but you can apply it to any metal level on the Marketplace, up to the premium of the plan you choose.
Where do I find my SLCSP premium?
On Form 1095-A, Part III, Column B, titled Monthly second lowest cost Silver plan premium. You use it with Form 8962 when you file your taxes.
Why did my benchmark plan change?
The benchmark changes when insurers change their Silver plan prices, when plans enter or leave your area, when you move, or when the ages of the people on your application change.
Does the benchmark plan depend on my income?
No. The benchmark depends on where you live and the ages of the people covered. Your income affects your expected contribution, which is subtracted from the benchmark premium to get your credit.
Can my premium tax credit be zero?
Yes. The credit is zero if the benchmark premium is lower than your expected contribution, if your income is above 400% of the poverty level, or if you are not eligible for another reason, such as an affordable employer offer.
Is the benchmark plan the same for everyone in my county?
Not always. The benchmark is set by rating area and by the ages of the people on your application, so two households in the same area can have different benchmark premiums.
This article is general educational information, not tax, legal or insurance advice. Premiums and examples are illustrative, and eligibility and subsidy amounts depend on your income, household, location and current law.
