Up late trying to finish my taxes when the thought just occured to me. Is the 65% subsidy state taxable?

The premium subsidy is not included in income for federal tax purposes. However, its treatment for state income tax purposes is determined under state law and depends on the tax law of your state.

This depends on how much money the taxpayer reports as income on their tax return. If an individual has a modified gross income of $125,000 to $145,000, or a joint filer of $250,000 to $290,000, then any COBRA subsidy payments received would count towards taxable income for that year. Any income less, and the subsidy benefits are NOT taxable.