For 2027 Marketplace coverage, the ACA premium tax credit is open to households earning between 100% and 400% of the federal poverty level. In dollars, that’s $15,960 to $63,840 for a single person and $33,000 to $132,000 for a family of four. Earn one dollar over the top line and the credit drops to zero, because the enhanced subsidies that removed that ceiling covered only tax years 2021 through 2025 and the IRS tables for 2027 stop at 400%.
ACA premium tax credit income limits for 2027 coverage
The Marketplace measures income against the poverty guidelines published early in the year before coverage starts, so 2027 plans are priced off the 2026 HHS poverty guidelines. For the 48 contiguous states and D.C., those are $15,960 for one person, $21,640 for two, $27,320 for three and $33,000 for four. Multiply by four and you get the ceilings: $63,840, $86,560, $109,280 and $132,000. Alaska and Hawaii have their own, higher guidelines, which put the single-person ceiling at $79,800 in Alaska and $73,440 in Hawaii.
The floor works differently depending on where you live. In states that expanded Medicaid, adults under about 138% of poverty generally get Medicaid instead of a tax credit. Under the 2026 guidelines that line is about $22,025 for one person, and Medicaid moves to the new guidelines once HHS publishes them in January. In states that didn’t expand, adults below 100% fall into a gap where they earn too little for the credit and don’t qualify for Medicaid either.
“Income” here means modified adjusted gross income for the whole tax household, so a spouse’s wages and a dependent’s income (if the dependent has to file) count too. It’s also the income for the year you’re buying coverage. When you apply in November 2026 you’re estimating what your household will make in 2027, and the IRS checks that estimate against your 2027 return.
Were the enhanced subsidies extended?
No, not as of mid-October 2026. The IRS fact sheet on the credit, FS-2025-10, states that Congress temporarily dropped the 400% requirement for tax years 2021 through 2025. Under the rules that began with the American Rescue Plan in 2021, households above the line paid no more than 8.5% of income for the benchmark plan, and enrollees between 100% and 150% of poverty could often find $0 premium plans. Bills to extend those rules were debated this year without becoming law, and the official 2027 numbers reflect that. The IRS table for 2027 tops out at “not more than 400%,” and HealthCare.gov describes eligibility as 100% to 400% of poverty.
How the 400% cliff works
Below 400%, the credit shrinks gradually as income rises. Past 400% it ends entirely. A single person at $63,840 still gets a credit if the benchmark silver plan in their area costs more than $6,524.45 a year, which is 10.22% of their income. At $63,841 the credit is $0 no matter what the plan costs, even for a 63-year-old whose silver plan would run $1,000 a month.
Older enrollees and families in high-premium areas feel this most, since their sticker price is highest. A raise, a year-end bonus, a Roth conversion or a bit of freelance income can push a household over without anyone noticing until tax season.
The 2027 applicable percentage table
The credit equals the cost of the second-lowest-cost silver plan in your area minus an expected contribution, and that contribution is a share of your income set by the IRS each year. Revenue Procedure 2026-26, released in July 2026, sets these for taxable years beginning in 2027:
| Household income (% of poverty) | Starting percentage | Ending percentage |
|---|---|---|
| Under 133% | 2.15% | 2.15% |
| 133% to under 150% | 3.23% | 4.3% |
| 150% to under 200% | 4.3% | 6.78% |
| 200% to under 250% | 6.78% | 8.66% |
| 250% to under 300% | 8.66% | 10.22% |
| 300% to 400% | 10.22% | 10.22% |
Inside a band the percentage climbs in a straight line from the starting figure to the ending one. A household at 175% of poverty sits halfway through the 150% to 200% band, so its share is halfway between 4.3% and 6.78%, or 5.54%. The same revenue procedure puts the 2027 affordability test for job-based coverage at 10.22%. If an employer plan costs you less than that share of household income for self-only coverage, you generally can’t take the credit for yourself.
A couple at $86,000, and what $1,000 more does
A married couple, both 61, expects $86,000 of household income in 2027. Say the benchmark silver plan for the two of them in their county costs $1,800 a month, or $21,600 for the year.
Their poverty line is $21,640 for a household of two. $86,000 divided by $21,640 is 3.974, so they’re at about 397% of poverty, in the flat 10.22% band. 10.22% of $86,000 is $8,789.20 a year, or $732.43 a month. That’s what they’re expected to pay. The credit covers the rest, and $21,600 minus $8,789.20 leaves $12,810.80 a year, or $1,067.57 a month sent straight to the insurer. If they pick a cheaper plan, the credit stays the same and their own share drops.
Now one of them picks up $1,000 of consulting work in the fall, and the couple’s 2027 return shows $87,000. Divided by $21,640, that’s 4.02, just past 400%. Their allowed credit for the year is $0. That $1,000 of extra income costs them the full $12,810.80 of advance credit, all of it owed with the 2027 return they file in 2028.
They only need to be $440 lower. A deductible contribution to a traditional IRA or a health savings account reduces the income figure used for the credit, and if they’re eligible for either, $440 put in before the deadline brings $87,000 down to $86,560, exactly 400% of poverty, which still qualifies.
Paying it back on Form 8962
Anyone who had advance payments sent to an insurer has to file a tax return and attach Form 8962, which compares the credit you actually qualified for with what was paid on your behalf. If you were owed more, the difference lowers your tax or raises your refund. If you got too much, the excess is added to your tax.
Until 2025, households under 400% of poverty had a repayment cap that limited how much of the excess they paid back. That’s gone. The IRS says plainly in FS-2025-10 that there is no repayment cap for tax years after 2025 and you must repay the full amount by which advance payments exceed your credit. For 2027 coverage, that full-repayment rule applies to the return due in April 2028, at every income level.
Reporting a raise or a new job to the Marketplace during the year lets it lower the monthly advance before the gap gets large. You can also take only part of the credit in advance and claim the rest on your return.
Open enrollment dates for 2027 plans
On HealthCare.gov, open enrollment runs from November 1, 2026 to January 15, 2027. Pick a plan by December 15 and coverage starts January 1, provided you pay the first premium. Enroll between December 16 and January 15 and coverage starts February 1. States that run their own exchanges can set different dates, so check your state’s site if it doesn’t use HealthCare.gov.
Immigration status rules that change in 2027
Income isn’t the only test this year. HealthCare.gov says that starting January 1, 2027, only certain immigration statuses qualify for savings: lawful permanent residents, Cuban and Haitian entrants, and Compact of Free Association migrants. Other lawfully present immigrants can still buy a Marketplace plan but won’t get the premium tax credit, even with income well inside the 100% to 400% range.
What to do before December 15
- Estimate your 2027 household income, and include side work, bonuses, retirement withdrawals and Roth conversions you expect.
- Compare it with the ceiling for your household size: $63,840 for one, $86,560 for two, $109,280 for three, $132,000 for four.
- If you’re within a few thousand dollars of the line, decide now how you’d bring income down, such as a traditional IRA or HSA contribution, and consider taking less of the credit in advance.
- Log in after November 1, update your application and compare the 2027 savings with what you’re paying in 2026.
- Choose a plan by December 15 for January 1 coverage, and report income changes during 2027 as they happen.
Related reading
- Government Money Programs for Low-Income Households
- Benefits You Can Claim When You’re Unemployed With No Income
- Social Security COLA for 2027 Is 3.6%, or $72 More on a $2,000 Check
The premium tax credit figures here come from IRS and HHS guidance published for 2027 coverage, and a change in the law during open enrollment would change them. Check the savings shown on your HealthCare.gov application and the Form 8962 instructions for your tax year, or ask a tax professional, before you pick a plan or file.
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