Premium tax credits for 2027: who qualifies and how Marketplace subsidies work
The premium tax credit lowers what you pay each month for a Marketplace plan. For 2027 coverage, it's available to eligible households with income between 100% and 400% of the federal poverty level. That works out to about $15,960–$63,840 for one person and $33,000–$132,000 for a family of four, based on the 2026 poverty guidelines. The temporary enhanced credits that removed the 400% cap expired at the end of 2025. If your actual income ends up higher than you estimated, you now repay the full excess at tax time.
Who qualifies for 2027
According to KFF's summary of the rules, to get a premium tax credit for 2027 Marketplace coverage you generally must:
- Have household income from 100% to 400% of the federal poverty level (FPL). Coverage year 2027 uses the 2026 poverty guidelines.
- Not have an offer of job-based coverage (including through a family member) that is considered affordable and meets minimum value. For 2027, an employer plan counts as affordable if the employee's premium is no more than 10.22% of household income.
- Not be eligible for Medicare, Medicaid or CHIP.
- Meet citizenship or lawful-presence requirements, and if married, file taxes jointly (with limited exceptions).
Income range for 2027 coverage (48 contiguous states and DC)
| Household size | 100% FPL | 400% FPL |
|---|---|---|
| 1 | $15,960 | $63,840 |
| 2 | $21,640 | $86,560 |
| 3 | $27,320 | $109,280 |
| 4 | $33,000 | $132,000 |
Based on the 2026 HHS poverty guidelines (ASPE). Alaska and Hawaii use higher guidelines. Your Marketplace application determines your actual eligibility.
How the amount is calculated
The credit is pegged to the benchmark plan: the second-lowest-cost Silver plan available to you. The law sets a required contribution, a percentage of your income you're expected to pay for that benchmark plan. The credit covers the rest. For 2027, KFF reports the required contribution ranges from 2.15% of income for the lowest eligible incomes up to 10.22% for incomes between 300% and 400% FPL.
You can apply the credit to any Bronze, Silver, Gold or Platinum plan (not Catastrophic). Choose a plan cheaper than the benchmark and you pay less than your required contribution; choose a pricier plan and you pay the difference.
What changed after 2025
From 2021 through 2025, temporary "enhanced" credits under the American Rescue Plan Act and the Inflation Reduction Act made credits larger and extended them to people above 400% FPL. Those expired at the end of 2025. KFF reports that average premium payments rose sharply in 2026 as a result and that many enrollees moved to higher-deductible plans. If your income is above 400% FPL in 2027, you pay the full, unsubsidized premium.
Advance credits and the tax-time reconciliation
Most people take the credit in advance, paid straight to the insurer to lower the monthly bill, based on an income estimate. When you file your federal return, you reconcile on Form 8962. If you qualified for more, you get the difference. If you received too much, you repay it. Starting with tax year 2026, the One, Big, Beautiful Bill Act eliminated the caps that used to limit how much some households had to repay, so you could owe the full excess.
Cost-sharing reductions
Separate from the premium credit, people with lower incomes may qualify for cost-sharing reductions that lower deductibles and copays, but only on Silver plans. See metal tiers.
Frequently asked questions
What is the income limit for premium tax credits in 2027?
For 2027 coverage, credits are available up to 400% of the federal poverty level, about $63,840 for one person or $132,000 for a family of four in the 48 contiguous states and DC, based on 2026 poverty guidelines.
Did the enhanced ACA subsidies expire?
Yes. The temporary enhanced premium tax credits under the American Rescue Plan Act and Inflation Reduction Act expired at the end of 2025.
What is the benchmark plan?
The second-lowest-cost Silver plan available to you. Your premium tax credit is calculated from its price and your required contribution percentage.
Do I have to pay back premium tax credits?
If you received more advance credit than you qualify for based on your final income, you repay the difference when you file. Starting with tax year 2026, the former repayment caps no longer apply.
Can I get a premium tax credit if my job offers insurance?
Generally not, if the employer plan is considered affordable (for 2027, employee premium of no more than 10.22% of household income) and meets minimum value.
Sources
- KFF: Explaining Health Care Reform: Questions About Health Insurance Subsidies (accessed October 28, 2026)
- HHS ASPE: Poverty guidelines (accessed October 28, 2026)
- IRS: Questions and answers on the Premium Tax Credit (accessed October 28, 2026)
- IRS: Repayment caps eliminated for excess advance payments of the Premium Tax Credit (accessed October 28, 2026)
- HealthCare.gov: Saving money on health insurance (accessed October 28, 2026)
- HealthCare.gov: Health plan categories (Bronze, Silver, Gold & Platinum) (accessed October 28, 2026)