Last updated: November 3, 2026
Quick answer: what’s different for 2027
- The subsidy cliff is back. The enhanced subsidies expired, so premium tax credits are again limited to household incomes between 100% and 400% of the federal poverty level: about $63,840 for one person and $132,000 for a family of four.
- You pay 2.15% to 10.22% of your income for the benchmark silver plan, depending on income. The credit covers the rest.
- No more repayment cap. If your actual income ends up higher than you estimated, you repay the full excess credit at tax time.
- Deadline on HealthCare.gov: enroll by December 15, 2026 for coverage starting January 1. State-run exchanges may have different dates.
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If you buy your own health insurance, 2027 is the first open enrollment in years where the size of your subsidy depends sharply on where your income lands. A few hundred dollars of extra income can now be the difference between a large monthly credit and none at all.
Premiums are also rising. The median proposed rate increase for individual-market plans is about 15%, and insurers have left the marketplace in a number of states. Higher benchmark premiums usually mean larger subsidies for people who qualify, but anyone above the 400% line pays the full increase.
Use the calculator below to estimate your 2027 premium tax credit and what you’d pay each month. You’ll need your expected 2027 household income and, for the most accurate result, the benchmark silver premium for your area, which HealthCare.gov shows when you browse plans. Further down: how to stay under the subsidy cliff, the new repayment risk, and every deadline that matters.
2027 ACA Subsidy Calculator
Use modified adjusted gross income (MAGI) for everyone you'll claim on your 2027 tax return. Pre-tax 401(k) and HSA contributions lower it.
The benchmark is the second-lowest-cost silver plan for your household and ZIP code. HealthCare.gov shows full prices when you browse plans without logging in.
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What You’ll Pay in 2027 by Income
Your premium tax credit is set so that the benchmark silver plan costs you a fixed share of your income. The table shows that monthly amount for common household sizes. If the benchmark plan in your area costs more than this, the credit pays the difference. If you choose a cheaper plan, you keep the full credit and pay less.
| Income (% of poverty level) | Share of income | Single | Couple | Family of four |
|---|---|---|---|---|
| 150% | 4.30% | $23,940 → $86/mo | $32,460 → $116/mo | $49,500 → $177/mo |
| 200% | 6.78% | $31,920 → $180/mo | $43,280 → $245/mo | $66,000 → $373/mo |
| 250% | 8.66% | $39,900 → $288/mo | $54,100 → $390/mo | $82,500 → $595/mo |
| 300% | 10.22% | $47,880 → $408/mo | $64,920 → $553/mo | $99,000 → $843/mo |
| 350% | 10.22% | $55,860 → $476/mo | $75,740 → $645/mo | $115,500 → $984/mo |
| 400% | 10.22% | $63,840 → $544/mo | $86,560 → $737/mo | $132,000 → $1,124/mo |
| Over 400% | No cap | No credit: you pay the full premium | ||
Based on the 2026 federal poverty guidelines for the 48 contiguous states, which apply to 2027 coverage, and the IRS applicable percentages for 2027. Below 133% of the poverty level the share is 2.15%. Alaska and Hawaii have higher poverty guidelines.
The 400% Subsidy Cliff: Who It Hits and How to Stay Under It
From 2021 through 2025, enhanced subsidies capped premiums at 8.5% of income with no upper income limit. Those enhancements have expired. For 2027, anyone with household income above 400% of the poverty level gets no premium tax credit at all, no matter how expensive their plan is.
The cliff is steepest for older enrollees, whose premiums are highest. Example: a single 60-year-old earning exactly $63,840 with a benchmark premium of $1,100 a month pays $544 and receives a $556 monthly credit, about $6,700 a year. Earning $1,000 more would push them over the line and cost the entire credit.
Your income for the subsidy is your modified adjusted gross income (MAGI): your adjusted gross income plus any tax-exempt interest, nontaxable Social Security benefits and excluded foreign income. Legal ways to lower it include:
- Pre-tax retirement contributions: a traditional 401(k), 403(b) or 457 plan at work, or a SEP-IRA or Solo 401(k) if you’re self-employed.
- Deductible traditional IRA contributions, if you qualify for the deduction.
- Health savings account contributions: up to $4,500 for self-only coverage or $9,000 for family coverage in 2027, if you have an HSA-eligible bronze or high-deductible plan.
- Self-employed deductions, including the deduction for self-employed health insurance premiums and business expenses.
Things that raise MAGI and can push you over: Roth conversions, capital gains from selling investments, retirement account withdrawals and bonuses. If you’re close to the line, plan their timing carefully.
The New Repayment Risk: Estimate Your Income Carefully
Most people take the premium tax credit in advance, paid straight to the insurer each month. At tax time, the IRS compares what you received with what you actually qualified for based on your real income.
Until now, lower- and middle-income households had a cap on how much extra credit they had to pay back. Starting with the 2026 tax year, those caps are gone. If your income turns out higher than you estimated, you repay the full difference. Crossing the 400% line during the year means repaying every dollar of credit you received.
How to protect yourself:
- Estimate realistically, including expected raises, overtime, side income and investment gains.
- Report changes to your marketplace within 30 days. Updating your income mid-year adjusts your monthly credit going forward.
- Take less in advance. You can choose to receive only part of your credit each month and claim the rest when you file, which creates a buffer.
- Set aside money if your income is irregular, such as freelance or commission work.
If your income ends up lower than estimated, the opposite happens: you receive the extra credit as part of your tax refund.
Silver vs. Bronze: The Cost-Sharing Reductions Most People Miss
If your income is between 100% and 250% of the poverty level, silver plans come with cost-sharing reductions. These lower your deductible, copays and out-of-pocket maximum, but only if you choose a silver plan.
| Income (% of poverty level) | Single income range | What a silver plan covers on average |
|---|---|---|
| 100%–150% | $15,960–$23,940 | 94% of costs (versus 70% for a standard silver plan) |
| 150%–200% | $23,940–$31,920 | 87% of costs |
| 200%–250% | $31,920–$39,900 | 73% of costs |
A bronze plan may have a lower or even $0 premium after your credit, but its deductible can be several thousand dollars. If you expect to use care during the year, a silver plan with cost-sharing reductions is often cheaper overall.
Above 250% of the poverty level, compare total yearly cost: twelve months of premiums plus the deductible and copays you expect to pay. For 2027, the out-of-pocket maximum for a marketplace plan can be as high as $12,000 for an individual.
Too Little Income: Medicaid and the Coverage Gap
- In states that expanded Medicaid, adults with income up to 138% of the poverty level (about $22,025 for one person) usually qualify for Medicaid instead of marketplace subsidies.
- In about 10 states that haven’t expanded Medicaid, including Texas, Florida and Georgia, many adults below 100% of the poverty level qualify for neither Medicaid nor a premium tax credit.
If you’re near these limits, apply anyway. HealthCare.gov and state exchanges check Medicaid and subsidy eligibility at the same time. Children often qualify for Medicaid or CHIP at much higher incomes than adults.
2027 Open Enrollment Deadlines
| Where you enroll | Deadline | Coverage starts |
|---|---|---|
| HealthCare.gov states | December 15, 2026 | January 1, 2027 |
| HealthCare.gov states | January 15, 2027 | February 1, 2027 |
| Idaho | December 15, 2026 | January 1, 2027 |
| Massachusetts | January 23, 2027 | February 1, 2027 |
| Virginia | January 29, 2027 | February 1, 2027 |
| California, New Jersey, New York, Rhode Island, D.C. | January 31, 2027 | February 1, 2027 |
Other state-run exchanges set their own dates, so check your state’s site. If you don’t act, you may be automatically re-enrolled in the same or a similar plan, but with 2027 prices and a credit based on the income you last reported. Log in and update your information either way.
Outside open enrollment, you can only sign up if you have a qualifying life event, such as losing other coverage, moving, marriage or having a baby.
Other Changes for 2027
- Higher premiums: the median proposed rate increase is about 15%, ranging from under 7% in some states to 29% in Arizona.
- Insurers leaving: carriers are exiting marketplaces in 24 states, so your current plan may not be available. Compare plans instead of relying on automatic re-enrollment.
- Out-of-pocket maximum: up to $12,000 for an individual, up from $10,600.
- HSA limits: $4,500 for self-only coverage and $9,000 for family coverage.
- Immigrant eligibility: starting in 2027, premium tax credits are limited to lawful permanent residents, Cuban and Haitian entrants, and Compact of Free Association migrants. Refugees, asylees, TPS holders and people on work or student visas lose eligibility.
- Catastrophic plans: enrollees age 30 and older generally need a hardship or affordability exemption to buy one.
- Employer coverage: if your employer offers coverage that costs you less than 10.22% of household income for employee-only coverage, you generally can’t get a premium tax credit for marketplace coverage.
Checklist Before You Enroll
- Estimate your 2027 MAGI as accurately as you can, including expected raises and side income.
- Run the calculator above and check how close you are to the 400% line.
- Browse plans on HealthCare.gov or your state exchange to see your benchmark silver premium and actual prices.
- Compare total yearly cost, not just the monthly premium. Check deductibles and out-of-pocket maximums.
- Check your doctors and prescriptions against each plan’s network and drug list.
- Decide how much credit to take in advance, keeping the repayment rule in mind.
- Enroll by December 15 for January 1 coverage, or by your state’s deadline.
Frequently Asked Questions
What is the income limit for ACA subsidies in 2027?
400% of the federal poverty level: $63,840 for one person, $86,560 for a couple and $132,000 for a family of four in the 48 contiguous states. Above that, there’s no premium tax credit because the enhanced subsidies have expired.
How much will I pay for health insurance in 2027 with a subsidy?
For the benchmark silver plan, you pay between 2.15% and 10.22% of your household income, depending on how your income compares with the poverty level. The premium tax credit covers the rest.
Do I have to pay back the premium tax credit?
Only if you received more in advance than you qualified for based on your actual income. Starting with the 2026 tax year, there’s no cap on that repayment, so report income changes promptly.
When is the deadline for 2027 ACA open enrollment?
On HealthCare.gov, enroll by December 15, 2026 for coverage starting January 1, or by January 15, 2027 for coverage starting February 1. Some state exchanges have later deadlines.
What counts as income for ACA subsidies?
Modified adjusted gross income: your adjusted gross income plus tax-exempt interest, nontaxable Social Security benefits and excluded foreign income, for everyone in your tax household.
Can I lower my income to qualify for a subsidy?
Yes, through legitimate deductions that reduce MAGI, such as pre-tax 401(k) contributions, deductible traditional IRA contributions and HSA contributions.
About the author
Nurkan Aydoğan is the founder of AYD Media and has worked in banking for more than 20 years, in roles spanning customer service, foreign trade, IT projects and business analysis. He writes about household finances, credit and how official changes affect people’s monthly budgets.
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