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ACA Subsidy Calculator 2027

For 2027, the health insurance subsidy rules snap back to the original formula: the enhanced credits that ran from 2021 to 2025 have expired, the share of income you are expected to pay now tops out at 10.22%, and the 400%-of poverty cliff is back, earn one dollar over it and the credit is zero. This free estimator shows exactly where you land: enter your household size and expected 2027 income to see your income as a percentage of the federal poverty level, your applicable percentage under the IRS table for 2027, the most you would be expected to pay for the benchmark Silver plan, and your estimated premium tax credit when you add that plan’s premium from HealthCare.gov. Open enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027. Estimate only, your marketplace application decides the real number.

Last updated: October 30, 2026

Written by Ateeq Fareedi · Last updated October 30, 2026

people Everyone on your tax return, you, a spouse and your dependents, whether or not they all need coverage.

$ Your best estimate of 2027 modified adjusted gross income: wages, self employment, pensions and most other income combined.

Alaska and Hawaii use higher poverty guidelines, which changes where the subsidy cliff falls.

$ The full monthly premium of the second lowest cost Silver plan for your household, look it up on HealthCare.gov. The credit estimate depends on it: benchmark premiums vary a lot by county and age.

The formula

  • Poverty level (2026 guidelines, contiguous US) = $15,960 + (household size − 1) × $5,680
  • Income as % of FPL = household income ÷ poverty level × 100
  • Applicable percentage (2027) = 2.15% below 133% FPL, rising band by band to 10.22% at 300 to 400% FPL
  • Expected contribution = income × applicable percentage
  • Premium tax credit = benchmark (second-lowest-cost Silver) premium − expected contribution, and $0 above 400% FPL

A worked example

Take a family of four in the contiguous US expecting $85,000 of 2027 income: the poverty level for four is $33,000, so their income is 257.6% of FPL. The 2027 applicable percentage at that income is 8.90%, which caps their expected contribution at $630.16 a month. Against a $1,600-a-month benchmark Silver plan, that is an estimated premium tax credit of $969.84 a month, $11,638 a year, with $47,000 of income room to spare before the 400% cliff at $132,000.

More about the ACA Subsidy Calculator

The cliff is the whole story in 2027

From 2021 to 2025 the enhanced premium tax credits softened everything: nobody paid more than 8.5% of income for the benchmark plan, and help continued above 400% of the poverty level. Those enhancements expired on December 31, 2025, and under current law they are not available for 2027. The original formula is back, the applicable percentage now climbs to 10.22% of income, and at exactly one dollar over 400% of FPL the credit does not shrink, it vanishes.

Put numbers on it. A family of four at $132,000, exactly 400% of the $33,000 poverty level, is expected to contribute 10.22% of income, $13,490 a year. Against a $19,200-a-year benchmark plan that leaves a credit of about $5,710 a year. The same family at $132,001 gets nothing and pays the whole $19,200. That is why the most important output of this calculator is not the credit. It is your distance from the cliff, shown on every result.

How to use this estimate without a tax time surprise

The credit is built on the income you estimate for 2027, and it is reconciled on your tax return. Under current law the old caps on repaying excess advance credit no longer apply, so if your income comes in higher than you told the marketplace, a bonus, a good freelance year, a spouse returning to work, the excess can come back in full at tax time. Estimate honestly, and report income changes to the marketplace during the year instead of discovering them in April.

Two more limits to keep in view. First, the benchmark premium is local: the second lowest cost Silver plan is priced by county, by the ages of the people covered and by tobacco use, so the same income produces very different credits in different ZIP codes, always pull your real benchmark from HealthCare.gov or your state marketplace. Second, some states add their own subsidies on top of the federal credit; this estimator covers the federal premium tax credit only. Insurers have also filed a median 15% premium increase for 2027 (Peterson-KFF analysis of 276 insurers’ filings), which flows straight into the benchmark, another reason to re check your numbers when enrollment opens on November 1, 2026.

Open enrollment for 2027: the dates that matter

Open enrollment for 2027 coverage runs from November 1, 2026 to January 15, 2027 on HealthCare.gov. In most states, enrolling by December 15 starts your coverage on January 1; enrolling after that starts it on February 1. Some state marketplaces set slightly different dates, so check yours, but treat mid December as the deadline that matters if you want cover from New Year’s Day.

Do not let last year’s plan simply roll over without checking it. Insurers have filed a median proposed increase of 15% for 2027, some plans are leaving some markets, and anyone who is auto reenrolled can be matched to a different plan than the one they chose. Run your expected 2027 income through the calculator above first: with the 400% cliff back, the estimate, and your distance from the cliff, is the number your enrollment decision hangs on.

How to use the ACA Subsidy Calculator

  1. Enter your tax household size, you, a spouse and dependents on your return.
  2. Enter the household income (MAGI) you expect for 2027, the figure your marketplace application will use.
  3. Choose your region: Alaska and Hawaii use higher poverty guidelines, so the cliff falls at a higher income there.
  4. Add the benchmark premium, the full monthly price of the second lowest cost Silver plan for your household, shown on HealthCare.gov, to turn your expected contribution into a credit estimate.
  5. Hit Calculate, then check your distance from the 400% cliff before you enroll, a small income change can move you across it.

Frequently asked questions

What is the premium tax credit?

It is the federal subsidy that lowers the monthly premium for a marketplace health plan. Your credit is set so that your cost for the benchmark plan, the second lowest cost Silver plan in your area, equals a set percentage of your income. You can take the credit in advance, paid monthly to your insurer, or claim it all on your tax return. Buy a cheaper plan than the benchmark and you keep the difference as a lower premium; buy a pricier one and you pay the extra.

Who qualifies for an ACA (Obamacare) subsidy in 2027?

In general: your household income is between 100% and 400% of the federal poverty level, you buy coverage through the marketplace, you are not eligible for Medicaid, Medicare or an affordable employer plan, and you file taxes (married couples generally must file jointly). For 2027 coverage the income window in the contiguous US runs from $15,960 to $63,840 for a single person, and from $33,000 to $132,000 for a family of four.

What is the 400% FPL subsidy cliff?

A hard cutoff. At or below 400% of the poverty level you can receive a premium tax credit; one dollar above it, the credit is zero for the whole year. For 2027 coverage that line is $63,840 for a single person and $132,000 for a family of four in the contiguous US (higher in Alaska and Hawaii). During 2021 to 2025 the cliff was suspended by the enhanced credits, its return is the single biggest subsidy change for 2027.

How is the premium tax credit calculated?

Credit = the benchmark plan’s annual premium minus your expected contribution, where the expected contribution is your income multiplied by your applicable percentage. Example: a family of four earning $85,000 sits at 257.6% of FPL, giving a 2027 applicable percentage of 8.90% and an expected contribution of $630.16 a month. If the benchmark Silver plan costs $1,600 a month, the credit is $969.84 a month.

What is the applicable percentage for 2027?

The share of income you are expected to pay for the benchmark plan, set by IRS Rev. Proc. 2026-26: 2.15% below 133% of FPL, rising in a straight line through each band, 3.23%, 4.30% from 133 to 150%, 4.30%, 6.78% from 150 to 200%, 6.78%, 8.66% from 200 to 250%, 8.66%, 10.22% from 250 to 300%, and a flat 10.22% from 300% to 400%. Above 400% there is no credit.

Which poverty guidelines does 2027 coverage use?

The 2026 HHS poverty guidelines, published in January 2026, marketplace subsidies always use the guidelines from the year before the coverage year. For the contiguous US: $15,960 for one person, $21,640 for two, $27,320 for three, $33,000 for four, plus $5,680 per additional person. Alaska’s guidelines start at $19,950 and Hawaii’s at $18,360 for one person.

What income counts, what is MAGI for the ACA?

Modified adjusted gross income: your adjusted gross income from your tax return, plus tax exempt interest, any foreign earned income you excluded, and the part of your Social Security benefits that was not taxed. Wages, self employment profit, pensions, rental income and capital gains all count. It is the income of your whole tax household, not just the people being insured.

What if my 2027 income turns out different from my estimate?

The advance credit is reconciled on your 2027 tax return against your actual income. If you earned less, you receive the difference as an additional credit. If you earned more, you repay the excess, and under current law the repayment caps that used to limit this no longer apply, so crossing the 400% cliff mid year can mean repaying the entire year’s advance credit. Report income changes to the marketplace as they happen.

What are cost sharing reductions, and are they part of this estimate?

Cost sharing reductions (CSRs) are a separate benefit that lowers your deductible, copays and out of pocket maximum, but only if you choose a Silver plan, and only up to 250% of FPL. They do not change your premium or the premium tax credit this calculator estimates. If your result shows income under 250% of FPL, a Silver plan is usually the best value in the marketplace even when a Bronze premium looks cheaper.

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

Premium tax credits start at 100% of FPL, so below that line this estimator shows no credit. In states that expanded Medicaid, adults up to 138% of FPL generally qualify for Medicaid instead, check your state first. In non expansion states, some adults below 100% of FPL fall into a coverage gap with neither Medicaid nor a credit; state programs and community health centers are the fallback there.