Is This Raise Actually a Raise? (2026 benefits cliff)
us_raise_benefits_cliffWhat a raise really adds after EITC, CTC, SNAP, Medicaid, and ACA subsidies move against it — the effective marginal rate no single program shows. For working households on any support program, a raise triggers five simultaneous countercurrents: federal tax and FICA go up, EITC phases out (up to 21¢ per dollar), SNAP tapers (30¢ per net dollar), Medicaid ends abruptly at 138% of the poverty line, and — new for 2026 — the ACA subsidy cliff at 400% FPL is back after the enhanced credits expired 31 Dec 2025. Stacked, effective marginal rates in the $25k–$45k band routinely exceed 60–80%. This tool computes your household’s net resources before and after a raise using the verified 2026 parameter tables, and names each cliff the raise crosses. The decisive inputs are ones most people don’t know matter: whether your state expanded Medicaid, and whether it raised the SNAP gross-income limit.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| bbce | No | SNAP gross-income limit in your state Most states raised the SNAP entry limit to 200% FPL via Broad-Based Categorical Eligibility — whether yours did decides where the SNAP door slams. Check your state SNAP page if unsure. | bbce200 |
| kids | No | Qualifying children (under 17) Sets CTC ($2,200 each), the EITC schedule, and household size for SNAP/Medicaid. | |
| rent | No | Monthly rent / shelter cost Rent plus basic utilities — drives SNAP’s excess-shelter deduction, which changes the benefit materially. | |
| raise | No | The raise (annual amount) Annual value of the raise, extra hours, or second job you are weighing. | |
| filing | No | Filing status Married filing jointly assumes a 2-adult household; single and head-of-household assume 1 adult. | hoh |
| income | No | Current annual earned income (household) Gross W-2 wages for the household before tax. This model treats all income as earned. | |
| premium | No | Marketplace benchmark premium (monthly, optional) The second-lowest-cost Silver plan for your household on healthcare.gov. Enter it to model ACA subsidies and the restored 400% FPL cliff; leave 0 to skip health-coverage math. | |
| expansion | No | Did your state expand Medicaid? The decisive input. In expansion states adults keep Medicaid up to 138% of the poverty line — and lose it in one step above. In the 10 non-expansion states, adults below 100% FPL may get no help at all (the coverage gap). *WI covers adults to 100% FPL by waiver. | yes |