Guide · 2027 coverage
ACA subsidy cliff 2027
For 2027 marketplace coverage, the premium tax credit stops above 400% of the federal poverty line: $86,560 of MAGI for a household of two, $63,840 for one. These come from poverty guidelines HHS has already published, and one dollar over the line loses the whole credit.
| Household size | Poverty guideline (2026) | 400% line (MAGI) | You pay on the line, a year |
|---|---|---|---|
| 1 | $15,960 | $63,840 | $6,524.45 |
| 2 | $21,640 | $86,560 | $8,846.43 |
| 3 | $27,320 | $109,280 | $11,168.42 |
| 4 | $33,000 | $132,000 | $13,490.40 |
| 5 | $38,680 | $154,720 | $15,812.38 |
| 6 | $44,360 | $177,440 | $18,134.37 |
| 7 | $50,040 | $200,160 | $20,456.35 |
| 8 | $55,720 | $222,880 | $22,778.34 |
“You pay” is the expected contribution toward the benchmark (second-lowest-cost silver) plan: 10.22% of MAGI at the line, up from 9.96% for 2026. The credit covers the rest of the benchmark premium. Figures are for the 48 states and DC.
ACA subsidy calculatorChoose 2027 as the coverage year, then enter your household size and the MAGI you expect for 2027: your expected contribution, your credit and the room left under the line.
Open the calculatorThe 400% cliff still applies in 2027
Congress removed the 400% limit for tax years 2021 through 2025 only. As of September 30, 2026, no law has extended that for 2027, so this page follows current law: a household with 2027 MAGI above 400% of the poverty line gets no premium tax credit and pays the full premium. If Congress changes the rule for 2027, these lines change with it.
Every line is higher than for 2026 coverage, by $1,240 for one person up to $6,280 for eight. For a household of two it moves from $84,600 to $86,560. The same household on the 2027 line is expected to pay $8,846.43 a year toward the benchmark plan; at $86,561 it pays the whole premium.
Which poverty guidelines 2027 coverage uses
The line uses the HHS guidelines in force on the first day of open enrollment. Open enrollment for 2027 coverage starts by November 1, 2026, and HHS publishes new guidelines each January, so 2027 coverage uses the 2026 guidelines: $15,960 for one person and $21,640 for two, plus $5,680 for each added person. The guidelines HHS publishes in January 2027 set the line for 2028 coverage, not 2027.
What you pay below the line in 2027
Below the line, the credit is the benchmark premium minus your expected contribution, a share of MAGI that rises with income. These are the 2027 percentages from the IRS. Within a band the percentage rises in a straight line from its initial to its final value.
| MAGI, share of the poverty line | Initial percentage | Final percentage |
|---|---|---|
| 100% up to 133% | 2.15% | 2.15% |
| 133% up to 150% | 3.23% | 4.30% |
| 150% up to 200% | 4.30% | 6.78% |
| 200% up to 250% | 6.78% | 8.66% |
| 250% up to 300% | 8.66% | 10.22% |
| 300% to 400% | 10.22% | 10.22% |
Open enrollment for 2027 coverage
On HealthCare.gov, open enrollment for 2027 coverage runs from November 1, 2026 to January 15, 2027. Enroll by December 15 for coverage that starts January 1. State-run marketplaces set their own dates. The advance credit you get is figured from the 2027 income you estimate when you apply.
What counts toward the line
The line is measured against 2027 modified adjusted gross income, added up for you and every family member who has to file a return: adjusted gross income plus tax-exempt interest and the untaxed part of Social Security. IRA withdrawals, Roth conversions and realized capital gains made in 2027 all raise it. Roth conversions and the ACA subsidy works one household through with 2026 figures; a 2027 conversion is measured the same way against the 2027 line.
If your 2027 income ends up over the line
Your 2027 tax return settles the advance credit on Form 8962 against the income you actually had. For tax years after 2025 there is no repayment cap: if your 2027 income ends above the line, you repay every dollar of advance credit you received for the year.
For the 2026 coverage you settle on next spring’s return, see the 2026 lines, which use the 2025 guidelines.
Calculations, not tax, legal or investment advice.
Sources
The lines and percentages above come from the same tables as the ACA subsidy calculator: 400% of the guideline for the household size, and the 2027 applicable percentage at the top band. Alaska and Hawaii have their own guidelines, which these tables do not carry.
Tables and sources
- HHS 2026 Poverty Guidelines (Federal Register 2026-00755); IRS Premium Tax Credit Q&A A72027 coverage uses the 2026 HHS poverty guidelines (48 states + DC), the guidelines most recently published on the first day of open enrollment; the enhanced credit's 400% waiver covered 2021-2025 only and no later law extends it, so eligibility stops above 400% FPL · www.federalregister.gov
- 26 CFR 1.36B-1(h), Federal poverty line(h): the guidelines most recently published as of the first day of the regular enrollment period for the coverage year · 2027 · www.ecfr.gov
- 26 U.S.C. 36B(c)(1)(A) and (E)(c)(1)(A): household income not above 400% of the poverty line; (E): the waiver of that limit applies to taxable years beginning before January 1, 2026 · 2027 · uscode.house.gov
- IRS Rev. Proc. 2026-26Rev. Proc. 2026-26 §3.01: Applicable Percentage Table for taxable years beginning in 2027 (§36B(b)(3)(A)(i), §1.36B-3(g)); within a band the percentage rises linearly from the initial to the final percentage · www.irs.gov
- IRS Questions and answers on the Premium Tax CreditQ1, Q7 and Q8, updated Feb. 19, 2026 · www.irs.gov
- HealthCare.gov, Dates and deadlines for health insurance, checked October 1, 2026Open Enrollment starts November 1; December 15 is the last day for coverage starting January 1; Open Enrollment ends January 15 · 2027 · www.healthcare.gov
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