The federal poverty level (FPL) determines eligibility for Medicaid, SNAP, ACA subsidies, and dozens of programs. But the official threshold paints an incomplete picture — and understanding what it actually measures (and doesn’t measure) matters for anyone navigating these programs or trying to understand economic conditions in America.
2026 Federal Poverty Guidelines
The federal poverty guidelines are updated annually by the Department of Health and Human Services, typically in late January. For 2026, a single person is considered “in poverty” if they earn less than $15,060 per year — that’s just $7.24 per hour working full-time.
To put that in perspective: the federal minimum wage is $7.25/hour, meaning a single person working full-time at minimum wage earns almost exactly at the poverty line. Add a child, and they’re well below it.
48 Contiguous States + DC
| Family Size | Annual Poverty Level | Monthly | Per Hour (Full-Time) | 138% FPL (Medicaid) | 250% FPL (ACA Subsidies) | 400% FPL |
|---|---|---|---|---|---|---|
| 1 | $15,060 | $1,255 | $7.24 | $20,783 | $37,650 | $60,240 |
| 2 | $20,440 | $1,703 | $9.83 | $28,207 | $51,100 | $81,760 |
| 3 | $25,820 | $2,152 | $12.41 | $35,632 | $64,550 | $103,280 |
| 4 | $31,200 | $2,600 | $15.00 | $43,056 | $78,000 | $124,800 |
| 5 | $36,580 | $3,048 | $17.59 | $50,480 | $91,450 | $146,320 |
| 6 | $41,960 | $3,497 | $20.17 | $57,905 | $104,900 | $167,840 |
| 7 | $47,340 | $3,945 | $22.76 | $65,329 | $118,350 | $189,360 |
| 8 | $52,720 | $4,393 | $25.35 | $72,754 | $131,800 | $210,880 |
Add $5,380 for each additional person beyond 8.
Why the FPL percentages matter: Many programs don’t use 100% FPL as the cutoff. Medicaid expansion covers people up to 138% FPL ($20,783 for a single person), while ACA premium subsidies extend to 400% FPL ($60,240). If you’re shopping for health insurance or checking program eligibility, these percentages determine what you qualify for.
Alaska
Alaska’s poverty guidelines are 25% higher than the contiguous states, reflecting the higher cost of living — particularly for food and heating. A single person in Alaska is at poverty level at $18,810, compared to $15,060 in the lower 48.
| Family Size | Annual Poverty Level | 138% FPL | 250% FPL |
|---|---|---|---|
| 1 | $18,810 | $25,958 | $47,025 |
| 2 | $25,540 | $35,245 | $63,850 |
| 3 | $32,270 | $44,533 | $80,675 |
| 4 | $39,000 | $53,820 | $97,500 |
Hawaii
Hawaii’s thresholds are 15% higher than the mainland, though many argue this still doesn’t adequately capture the state’s extreme cost of living — particularly housing. The average cost of a house in Hawaii is among the highest in the nation.
| Family Size | Annual Poverty Level | 138% FPL | 250% FPL |
|---|---|---|---|
| 1 | $17,310 | $23,888 | $43,275 |
| 2 | $23,500 | $32,430 | $58,750 |
| 3 | $29,690 | $40,972 | $74,225 |
| 4 | $35,880 | $49,514 | $89,700 |
Programs That Use FPL
The federal poverty level is the gateway to America’s social safety net. Dozens of programs use FPL thresholds to determine eligibility — and small differences in income can mean the difference between qualifying and not.
Here’s what each major program offers and who qualifies:
| Program | FPL Threshold | What It Provides |
|---|---|---|
| Medicaid (ACA expansion) | 138% FPL | Free healthcare coverage |
| CHIP (Children’s Health Insurance) | 200-300% FPL (varies by state) | Low-cost children’s health coverage |
| ACA premium subsidies | 100-400% FPL | Tax credits for marketplace insurance |
| ACA cost-sharing reductions | 100-250% FPL | Lower deductibles and copays |
| SNAP (food stamps) | 130% FPL (gross), 100% (net) | Monthly food assistance |
| WIC | 185% FPL | Nutrition for women, infants, children |
| National School Lunch (free) | 130% FPL | Free school meals |
| National School Lunch (reduced) | 185% FPL | Reduced-price school meals |
| Head Start | 100% FPL | Free preschool |
| LIHEAP (heating assistance) | 150% FPL | Help with utility bills |
| Pell Grant (maximum) | Under $30,000 EFC | College tuition assistance |
| Section 8 housing | 50% area median income | Rental vouchers |
| Lifeline (phone/internet) | 135% FPL | Discounted phone/internet |
The “benefits cliff” problem: These thresholds create situations where earning slightly more money can actually make you worse off. A single parent earning $20,700 (just under 138% FPL) qualifies for free Medicaid. Earn $21,000, and they might lose coverage worth $6,000+ annually. This cliff effect discourages work and traps people in poverty.
Poverty Rates by State
Poverty isn’t distributed evenly across America. Southern states consistently have the highest poverty rates, while New England and the Upper Midwest have the lowest. These differences reflect a complex mix of historical, economic, and policy factors.
To see how your income compares to others in your state, use our income percentile calculator.
| Rank | State | Poverty Rate | People in Poverty | Median HH Income |
|---|---|---|---|---|
| 1 | Mississippi | 19.4% | 575,000 | $48,610 |
| 2 | Louisiana | 18.6% | 860,000 | $52,295 |
| 3 | New Mexico | 17.6% | 372,000 | $53,992 |
| 4 | West Virginia | 17.2% | 304,000 | $50,884 |
| 5 | Kentucky | 16.3% | 728,000 | $55,573 |
| 6 | Arkansas | 15.7% | 475,000 | $53,369 |
| 7 | Alabama | 15.5% | 776,000 | $55,869 |
| 8 | Oklahoma | 14.5% | 576,000 | $59,132 |
| 9 | Tennessee | 13.4% | 930,000 | $63,109 |
| 10 | South Carolina | 13.3% | 690,000 | $59,318 |
| — | National average | 11.5% | 37.9 million | $75,149 |
| 42 | Maryland | 9.1% | 558,000 | $94,991 |
| 43 | Colorado | 9.0% | 520,000 | $87,598 |
| 44 | Virginia | 8.9% | 770,000 | $87,249 |
| 45 | Connecticut | 8.7% | 313,000 | $83,572 |
| 46 | Massachusetts | 8.6% | 596,000 | $89,645 |
| 47 | Minnesota | 8.3% | 470,000 | $84,313 |
| 48 | Hawaii | 8.2% | 118,000 | $84,857 |
| 49 | Utah | 7.9% | 260,000 | $86,833 |
| 50 | New Jersey | 7.8% | 718,000 | $89,703 |
| 51 | New Hampshire | 7.2% | 99,000 | $88,465 |
What explains these differences? States with high poverty rates tend to share certain characteristics: lower educational attainment, fewer high-paying industries, weaker state safety nets, and historical economic disadvantages. Meanwhile, wealthier states often have more diverse economies, higher education rates, and state-level programs that supplement federal benefits.
For context on what constitutes a good income, see our guide on average income by age and how income varies by education level.
Official Poverty vs. Supplemental Poverty Measure
Here’s a dirty secret about the federal poverty line: it’s based on a formula from 1963 that assumed families spent one-third of their income on food. Economist Mollie Orshansky created it by taking the cost of a minimum food diet and multiplying by three.
The problem? In the 1960s, food really was about one-third of a typical budget. Today, housing costs have exploded while food has gotten relatively cheaper. Many families now spend 40-50% of income on housing alone. The official poverty line hasn’t been meaningfully updated to reflect this reality.
| Measure | Single Person | Family of 4 | What It Includes |
|---|---|---|---|
| Official FPL | $15,060 | $31,200 | Based on 3x food costs (1960s formula) |
| Supplemental Poverty Measure | ~$18,500 | ~$36,000 | Adds housing, medical, taxes, geographic variation |
| MIT Living Wage | $22,000-$36,000 | $72,000-$120,000 | Actual cost of basic necessities by location |
| Self-sufficiency standard | $25,000-$45,000 | $65,000-$130,000 | By county, accounts for local costs |
The official poverty line understates true need by 20-60% depending on location.
The MIT Living Wage Calculator is particularly eye-opening. It calculates what households actually need to cover basic expenses — housing, food, childcare, transportation, healthcare, and taxes — in each county. For a family of four in a high-cost area, the living wage can exceed $100,000, more than three times the official poverty line.
See our cost of living calculator to compare expenses across different cities.
Child Poverty in America
Child poverty deserves special attention because its effects last a lifetime. Children who grow up in poverty have worse health outcomes, lower educational attainment, and earn less as adults. The economic term is “intergenerational poverty” — poverty that passes from parents to children.
| Metric | Value |
|---|---|
| Children under 18 in poverty | 11.6 million (16.2%) |
| Children in deep poverty (<50% FPL) | 5.1 million (7.1%) |
| Children relying on SNAP | 17.5 million |
| Children on Medicaid/CHIP | 37 million |
| States with highest child poverty | Mississippi (27.7%), Louisiana (25.3%), New Mexico (24.8%) |
| States with lowest child poverty | New Hampshire (7.8%), Utah (8.1%), Minnesota (9.2%) |
Deep poverty — living below 50% of the poverty line, or about $7,500 for a single person — affects 5.1 million children. These families often can’t afford basic necessities even with government assistance.
Impact of Government Programs on Child Poverty
Without government intervention, child poverty would be dramatically worse. Tax credits, food assistance, and other programs lift millions of children above the poverty line each year:
| Program | Children Lifted Out of Poverty |
|---|---|
| Social Security | 1.6 million |
| Tax credits (EITC + CTC) | 4.7 million |
| SNAP (food stamps) | 1.5 million |
| Housing subsidies | 0.8 million |
| School lunch programs | 0.6 million |
| All programs combined | 8.4 million |
Without government transfers, child poverty would be roughly 28% instead of 16%.
The Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) are the most effective anti-poverty programs, lifting nearly 5 million children out of poverty combined. These credits are refundable, meaning families receive them even if they owe no federal income tax. For more on tax credits, see our tax guides.
Working Poor: Poverty Among Full-Time Workers
The phrase “working poor” captures a troubling reality: millions of Americans work full-time and still can’t escape poverty. This isn’t a failure of work ethic — it’s a failure of wages to keep pace with living costs.
| Metric | Value |
|---|---|
| Full-time workers below poverty line | 1.7 million |
| Part-time workers below poverty line | 3.2 million |
| Working poor rate (any work) | 5.3% |
| Minimum wage ($7.25) annual full-time income | $15,080 |
| Poverty line for single person | $15,060 |
A single person working full-time at the federal minimum wage barely clears the poverty line — and doesn’t clear it for any family with dependents.
The math doesn’t work: At $7.25/hour, a full-time worker earns $15,080 per year — just $20 above the poverty line for a single person. Add one child, and they’re $5,000 below the poverty line even working 40 hours per week, 52 weeks per year, with no sick days or vacations.
This is why debate about the minimum wage matters. To understand how hourly wages translate to annual income, see our hourly to salary calculator. Many states have set their minimum wage above the federal level — ranging from $10 to over $16 per hour.
For perspective on typical earnings in different fields, see average income by occupation.
Cost of Poverty
Poverty isn’t just expensive for those experiencing it — it’s expensive for everyone. The downstream costs of poverty ripple through healthcare, criminal justice, education, and lost economic productivity.
| Cost Category | Annual Cost to Society |
|---|---|
| Lost economic productivity | $600 billion |
| Increased healthcare spending | $240 billion |
| Criminal justice costs | $85 billion |
| Childhood poverty (long-term effects) | $1.03 trillion |
| Homelessness services | $30 billion |
| Total estimated cost | ~$1.1 trillion/year |
Studies estimate the US loses about 4-5% of GDP annually due to poverty and its effects.
Childhood poverty is especially costly. Research from the National Academy of Sciences estimates that childhood poverty costs the US over $1 trillion per year when accounting for reduced adult earnings, increased healthcare needs, and higher crime rates. Investing in children — through programs like Head Start, school meals, and the Child Tax Credit — often yields positive returns in the form of reduced future costs.
How to Check Your Eligibility
If you think you might qualify for assistance programs, here’s how to check:
- Calculate your household income — include wages, self-employment income, Social Security, and most other regular income
- Determine your household size — count everyone living together who shares food and financial resources
- Compare to the FPL thresholds above — most programs use 100-250% FPL
- Apply for specific programs — each program has its own application process
Key programs to check: Medicaid (healthcare.gov or your state’s Medicaid office), SNAP (your local SNAP office), and ACA subsidies (healthcare.gov during open enrollment).
To understand where your income falls compared to others, try our income percentile calculator or see how your net worth compares by age.
Related: Average Income in America | Cost of Living Calculator | Income Percentile by Age | Medicare vs Medicaid: What’s the Difference? | Net Worth Percentile Calculator