ACA Subsidy Calculator (2027): Premium Tax Credit, 400% Cliff

How the ACA subsidy is calculated for 2027

The premium tax credit is the difference between the premium of the benchmark plan (the second lowest cost silver plan for your household) and the share of income you are expected to pay yourself. That share comes from the IRS applicable percentage table, which for 2027 runs from 2.15% of income at the bottom to 10.22% at 300% to 400% of the poverty level (Rev. Proc. 2026-26). For 2026 coverage the same table ran from 2.10% to 9.96% (Rev. Proc. 2025-25). Within each band the percentage rises in a straight line.

Household income, % of poverty level	Expected contribution, 2027 coverage	Expected contribution, 2026 coverage
100% to under 133%	2.15%	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%	9.96%
Over 400%	No credit	No credit

Worked example for 2027: one person in Ohio expects $40,000 of income. The 2026 poverty guideline for one person is $15,960, so that is 250% of the poverty level and the expected contribution is 8.66% of income, or $3,464 a year ($289 a month). If the benchmark silver plan costs $600 a month, the credit is $600 minus $289, so $311 a month and $3,736 for the year. The calculator follows Form 8962: the poverty percentage is rounded down to a whole number, and the yearly and monthly contributions are rounded to whole dollars.

Household income is modified adjusted gross income (MAGI): the adjusted gross income on your return plus tax-exempt interest, the nontaxable part of Social Security benefits and excluded foreign income, added up for everyone on the return who has to file. The poverty level comes from the HHS guidelines in effect when open enrollment started, so 2027 coverage uses the 2026 guidelines and 2026 coverage uses the 2025 guidelines. The federal poverty level calculator shows every threshold for your household.

The 400% subsidy cliff is back for 2026 and 2027

From 2021 through 2025, Congress removed the income limit and capped everyone's contribution at 8.5% of income. Those rules expired after 2025 and were not extended, so for 2026 and 2027 the original law applies again: household income over 400% of the poverty level means no premium tax credit at all, however small the overshoot.

For 2027 coverage the 400% line is $63,840 for one person and $132,000 for a family of four in the 48 states and DC (2026 guidelines). For 2026 coverage it is $62,600 for one person and $128,600 for four (2025 guidelines). Alaska and Hawaii have higher guidelines, so their lines are higher. At $63,840 a single person still gets a credit; at $63,841 they get nothing, and the IRS checks the real income on Form 8962 after the year ends. If you are close to the line, pre-tax retirement and HSA contributions lower MAGI, and the calculator shows exactly how much room you have.

Where to find the benchmark silver plan premium

The benchmark is the second lowest cost silver plan available to the people in your household who are enrolling, before any credit is applied. For the coming year, preview plans on HealthCare.gov (or your state's own exchange, such as Covered California or NY State of Health) without entering income, show only silver plans, sort by premium and take the second cheapest. For a year that has ended, the tax tool at HealthCare.gov/tax-tool gives the exact benchmark premium the IRS expects on Form 8962.

Your credit is the same dollar amount whichever plan you buy, so a bronze plan may cost you little or nothing after the credit, while a gold plan costs the difference. The credit can never exceed the premium of the plan you actually choose.

Questions

What income qualifies for an ACA subsidy in 2027?

Household income between 100% and 400% of the federal poverty level: $15,960 to $63,840 for one person and $33,000 to $132,000 for a family of four in the 48 states and DC, using the 2026 guidelines. Alaska and Hawaii limits are higher.

Did the enhanced ACA subsidies end?

Yes. The enhanced credits applied to tax years 2021 through 2025. For 2026 and 2027 coverage the original rules apply: the 400% income limit is back and the contribution scale runs up to 9.96% (2026) or 10.22% (2027) of income.

What is the ACA subsidy cliff?

The point where a credit drops to zero: one dollar of household income over 400% of the poverty level means no premium tax credit for the year, and any advance credit you received has to be repaid when you file.

What is the second lowest cost silver plan?

The benchmark the credit is measured against: of all silver plans your household could buy, the one with the second lowest premium. Its price sets your credit, but you can spend the credit on any metal level.

What happens if I earn more than I estimated?

The credit is reconciled on Form 8962 with your actual income, so you may have to pay back part of the advance credit, or all of it if you end the year over 400% of the poverty level. Report income changes to the Marketplace during the year.

Can I get the credit if my employer offers insurance?

Only if the employer plan is unaffordable or does not meet minimum value. For 2027 it counts as affordable when your share of the self-only premium is at most 10.22% of household income (9.96% for 2026).

What if my income is under 100% of the poverty level?

In states that expanded Medicaid you qualify for Medicaid up to 138% of the poverty level instead. In the other states most people under 100% get neither Medicaid nor a premium tax credit, with narrow exceptions.

Sources

Updated November 3, 2026. Estimates only, not tax or financial advice.