Quick answer: For 2027 coverage you generally qualify for ACA premium tax credits if your household income is between 100% and 400% of the federal poverty level (FPL) and you do not have affordable employer coverage. That is roughly $15,960 to $63,840 for one person, or $33,000 to $132,000 for a family of four. Above 400% FPL the credit drops to zero, because the enhanced subsidies that removed that limit expired on December 31, 2025.
Many people put themselves into one of two buckets: “I definitely qualify” or “I definitely don’t, so there is no point checking.” Both assumptions are riskier than usual for 2027. Here is what determines your eligibility now, and how to estimate what it is worth before you shop.
What Changed for 2026 and 2027
The enhanced premium tax credits that expanded ACA subsidies from 2021 through 2025 expired at the end of 2025. The House passed a three-year extension (H.R. 1834) on January 8, 2026, but the Senate has not passed it or a compromise, and as of our latest check no extension has been enacted. Unless that changes, 2027 follows the original ACA structure:
- The subsidy cliff at 400% of FPL is back. Earning even slightly above that line can mean $0 in premium tax credits, no matter how expensive the benchmark plan is in your area.
- The expected contribution percentages are higher at every income level than under the enhanced rules, topping out at 10.22% of income for 2027.
Congress could still act, so confirm your numbers again closer to Open Enrollment.
The 100% to 400% FPL Rule, in Real Numbers
Eligibility is based on your household income as a percentage of the federal poverty level, which depends on household size. Premium tax credits for 2027 coverage use the 2026 federal poverty guidelines (Alaska and Hawaii use higher figures):
| Household size | 100% FPL | 250% FPL | 400% FPL (cliff) |
|---|---|---|---|
| 1 | $15,960 | $39,900 | $63,840 |
| 2 | $21,640 | $54,100 | $86,560 |
| 3 | $27,320 | $68,300 | $109,280 |
| 4 | $33,000 | $82,500 | $132,000 |
Below roughly 250% FPL you may also qualify for cost-sharing reductions, which lower your deductible and out-of-pocket costs on a Silver plan specifically. We explain how those interact with plan choice in our guide to choosing an ACA marketplace plan.
How Much You Are Expected to Pay in 2027
The credit is built around a simple idea: you are expected to contribute a set percentage of your income toward the benchmark plan, and the tax credit covers the rest of that plan’s premium. The IRS published the 2027 percentages in Revenue Procedure 2026-26:
| Household income (% of FPL) | Expected contribution (% of income) |
|---|---|
| Below 133% | 2.15% |
| 133% to under 150% | 3.23% to 4.30% |
| 150% to under 200% | 4.30% to 6.78% |
| 200% to under 250% | 6.78% to 8.66% |
| 250% to under 300% | 8.66% to 10.22% |
| 300% to 400% | 10.22% |
| Above 400% | No premium tax credit |
To make that concrete, a household of three at 250% FPL (about $68,300) is expected to contribute about 8.66% of income toward the benchmark plan, roughly $490 a month. At 350% FPL (about $95,600) the expected contribution is 10.22%, roughly $815 a month. At 405% FPL the credit is zero. These are the amounts you are expected to pay toward the benchmark, not your final premium, which depends on the plan you pick.
What Is the Benchmark Plan?
The benchmark is the second-lowest-cost Silver plan (SLCSP) available to you in your county, based on everyone in your household who is enrolling. Your premium tax credit equals the benchmark premium minus your expected contribution. You can apply that credit to any metal level on the Marketplace, so a Bronze or Gold plan can cost more or less than the credit depending on its price. If the benchmark premium is lower than your expected contribution, you receive no credit. Our second lowest cost silver plan explainer walks through a full example.
What If Your Income Sits Right Around 400%?
This is where the cliff bites. With no gradual phase-out, a household at 395% FPL and one at 405% FPL can have identical circumstances but a five-figure difference in what they pay for the same plan.
If you are near that line, review it with an advisor before you finalize your estimate. Legitimate ways to manage where you land include timing retirement account contributions, understanding what counts toward Modified Adjusted Gross Income, and knowing that self-employed enrollees can typically deduct their own premiums, which changes the income figure used for eligibility.
New Rules That Raise the Stakes on Your Income Estimate
- No repayment cap. Starting with tax year 2026, if your advance credits were larger than the credit you were due, you generally repay the full excess when you file, regardless of income.
- Income-based Special Enrollment Periods. Since 2026, people who enroll through a Special Enrollment Period based only on income cannot receive advance premium tax credits. They can still enroll during Open Enrollment.
- Narrower immigrant eligibility in 2027. Premium tax credit eligibility for lawfully present immigrants is generally limited to green card holders, certain Cuban and Haitian entrants, and people from Compact of Free Association countries. Refugees, asylees, visa holders and people with temporary protected status lose eligibility starting in 2027.
These provisions come from the 2025 federal budget law (H.R. 1). If any of them might apply to you, ask for a review of your specific situation.
Special Situations That Change the Math
- You have a job offer with health coverage. An employer offer does not automatically disqualify you, but it can, depending on whether that coverage is affordable under IRS rules (10.22% of household income for employee-only coverage in 2027). We walk through that test in Marketplace vs. employer coverage.
- You are self-employed. The self-employed health insurance deduction and Marketplace subsidies both key off the same income figure, and getting the sequencing right can change your result.
- You are retired but not yet 65. Marketplace subsidies are often the bridge to Medicare, and the income rules apply the same way regardless of employment status.
Getting Your Actual Number
The 2027 subsidy structure is more restrictive than what enrollees saw from 2021 through 2025, and the cliff makes precision matter. Get in touch before Open Enrollment opens and we will run your household’s actual eligibility, including how it interacts with any employer offer and whether you qualify for a Special Enrollment Period to act sooner. Open Enrollment starts November 1, and our 2027 Open Enrollment checklist covers the dates and what to prepare. You can also browse Marketplace plan options directly.
Frequently Asked Questions
What is the income limit for ACA subsidies in 2027?
Premium tax credits generally apply to household income between 100% and 400% of the federal poverty level. Using the 2026 guidelines, that is about $15,960 to $63,840 for one person and $33,000 to $132,000 for a family of four. Above 400% the credit is zero because the enhanced subsidies expired.
Are the enhanced ACA subsidies still available?
No. The enhanced premium tax credits expired on December 31, 2025. The House passed a three-year extension in January 2026, but the Senate has not passed it and no extension has been enacted as of our latest check.
What is the second lowest cost silver plan?
It is the benchmark plan used to calculate your premium tax credit: the second-cheapest Silver plan available in your county for the people enrolling. Your credit is that premium minus the percentage of income you are expected to contribute.
Do I need to re-apply every year?
Yes, in the sense that you should reconfirm or update your income estimate each Open Enrollment. Auto-renewal keeps you covered, but it will not catch an income change or a change in your benchmark plan.
What if my income changes during the year?
Report it to the Marketplace. Credits are reconciled against your actual income at tax time, and starting with tax year 2026 there is no cap on repaying excess advance credits, so an outdated estimate can be costly.
Is this the same as cost-sharing reductions?
No. Premium tax credits lower your monthly premium. Cost-sharing reductions lower your deductible and out-of-pocket costs, apply only on Silver plans, and use a lower income cutoff of about 250% FPL. Many households qualify for both.
This article is general information, not personalized advice. Eligibility, subsidy amounts and applicable rules depend on your income, household, location and current law, which could still change through Congressional action before 2027 coverage begins.
