U.S. · Premium tax credit · 26 U.S.C. 36B · Coverage year 2027
ACA subsidy income limits 2027 calculator.
For 2027 coverage the premium tax credit applies from 100% to 400% of the federal poverty line, and you are expected to pay 2.15% to 10.22% of income toward the benchmark plan.
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Result
The 2027 limits in one line
To get the premium tax credit for 2027 your household income must be at least 100% and no more than 400% of the poverty line (26 U.S.C. 36B(c)(1)(A)). The line is the 2026 HHS poverty guideline: $15,960 for one person in the 48 states and D.C., plus $5,680 for each additional person. The enhanced rules that removed the 400% cap applied only to 2021 through 2025 (36B(c)(1)(E)), so the cap is back.
Income limits by household size
| Household size | 100% (48 states, D.C.) | 400% (48 states, D.C.) | 400% (Alaska) | 400% (Hawaii) |
|---|---|---|---|---|
| 1 | $15,960 | $63,840 | $79,800 | $73,440 |
| 2 | $21,640 | $86,560 | $108,200 | $99,560 |
| 3 | $27,320 | $109,280 | $136,600 | $125,680 |
| 4 | $33,000 | $132,000 | $165,000 | $151,800 |
| 5 | $38,680 | $154,720 | $193,400 | $177,920 |
| 6 | $44,360 | $177,440 | $221,800 | $204,040 |
| 7 | $50,040 | $200,160 | $250,200 | $230,160 |
| 8 | $55,720 | $222,880 | $278,600 | $256,280 |
Marketplace coverage in a year uses the guidelines published the year before; the Form 8962 instructions apply the same idea (for 2025 they use the 2024 lines). Sources: 2026 guidelines from HHS ASPE; for more than 8 people add $5,680 (48 states), $7,100 (Alaska) or $6,530 (Hawaii) to the 100% figure and multiply by 4.
What you are expected to pay
IRS Rev. Proc. 2026-26 sets the 2027 applicable percentage table. Your expected contribution toward the benchmark plan is that percentage of your income, rising in a straight line inside each band. The credit is the benchmark premium minus that contribution.
| Income as % of poverty line | 2027 percent of income | 2026 percent of income |
|---|---|---|
| Under 133% | 2.15% to 2.15% | 2.10% to 2.10% |
| 133% to under 150% | 3.23% to 4.30% | 3.14% to 4.19% |
| 150% to under 200% | 4.30% to 6.78% | 4.19% to 6.60% |
| 200% to under 250% | 6.78% to 8.66% | 6.60% to 8.44% |
| 250% to under 300% | 8.66% to 10.22% | 8.44% to 9.96% |
| 300% to 400% | 10.22% to 10.22% | 9.96% to 9.96% |
The 2027 required contribution percentage for judging whether job-based coverage is affordable is 10.22% (Rev. Proc. 2026-26 section 3.02).
Worked example
Two people in the 48 states, 2027 MAGI of $75,000. The poverty line is $21,640, so income is 346.6% of it and the rate is 10.22%. Expected contribution: $7,665 a year, or $638.75 a month. With a $1,200 monthly benchmark the credit is about $561.25 a month. The 400% line is $86,560, so there is $11,560 of room. One dollar over it, the credit is zero. Under 2026 numbers the same household would be expected to pay 9.96%, or $7,470.
How the estimate works
- Poverty line for your region and household size.
- Percent of poverty = MAGI divided by that line. Outside 100% to 400% the credit is zero.
- Rate from the 2027 table, interpolated within the band.
- Credit = benchmark premium × 12 minus MAGI × rate, never below zero.
The tool interpolates; Form 8962 uses a table rounded by whole percent, so a filed return can differ by a few dollars.
What this does not cover
- Employer-offered affordable coverage, which can block the credit.
- Medicaid and CHIP eligibility, which depend on your state.
- Mid-year changes, state subsidies, the age rating of your benchmark and cost-sharing reductions.
- Repaying excess advance credit: see the repayment calculator.
Sources
Retrieved 2026-11-01. Each page was opened and read against the claim next to it.
- IRS Rev. Proc. 2026-26, 2027 applicable percentage table: the 2027 applicable percentage table and the 10.22% required contribution percentage.
- IRS Rev. Proc. 2025-25, 2026 applicable percentage table: the 2026 table used for the comparison column.
- 26 U.S.C. 36B, premium tax credit (Cornell LII): the 100% to 400% rule and the temporary rule for 2021 through 2025.
- HHS ASPE, 2026 poverty guidelines: the 2026 poverty guidelines for the 48 states, Alaska and Hawaii.
- IRS, Instructions for Form 8962 (2025): the practice of using the prior year's poverty lines.
Frequently asked questions
What are the ACA subsidy income limits for 2027?
100% to 400% of the 2026 poverty line. For one person in the 48 states and D.C. that is $15,960 to $63,840; for a family of four $33,000 to $132,000.
Is there still a subsidy cliff in 2027?
Yes. Section 36B(c)(1)(A) allows the credit only up to 400% of the poverty line, and the temporary rule that waived it ran from 2021 through 2025.
What percent of income do I pay in 2027?
From 2.15% below 133% of poverty up to 10.22% at 300% to 400%, per IRS Rev. Proc. 2026-26.
Which poverty guidelines apply to 2027 coverage?
The 2026 guidelines published by HHS, since coverage uses the guidelines in force when open enrollment begins.
What is the benchmark premium?
The premium of the second-lowest-cost Silver plan available to you. It sets your credit no matter which plan you buy.
What if I earn less than 100% of poverty?
The credit generally starts at 100%. Adults in states that expanded Medicaid may qualify for Medicaid instead; in other states there can be a gap with neither.
Estimate only
Estimate only. This is educational, not tax or insurance advice; the Marketplace and Form 8962 make the binding calculation. Nothing you enter leaves your browser.