US · 2027 IRS rules · 30 HealthCare.gov statesFor 2027 coverage, the premium tax credit caps what you pay for the benchmark silver plan at 2.15% to 10.22% of income, but only up to 400% of the poverty line: $63,840 for one person, $132,000 for a family of four. The enhanced credits of 2021–2025 have expired.
By Artem Titarenko · Reviewed October 12, 2026 · Methodology
Modified adjusted gross income (MAGI) of everyone on your tax return.
You, your spouse and dependents, including anyone not enrolling.
Enter ages and income to see your estimate.
Premiums: 2026 HealthCare.gov premiums until CMS publishes 2027 rates (CMS data as of 2026-08-04). For households that get a subsidy, a higher 2027 benchmark premium raises the subsidy by the same amount, so the net cost of the benchmark plan depends only on income.
Not sure which metal level to buy with your subsidy? The Bronze vs Silver vs Gold calculator prices every plan in your county for a typical year and a bad year, including deductibles and copays.
Example: a 40-year-old in Miami-Dade County earning $40,000 (251% of the poverty line) is expected to pay 8.68% of income, or $289 a month. The benchmark plan costs $684, so the credit is $395 a month.
| Income, % of poverty line | Single person, 2027 | Expected contribution |
|---|---|---|
| Under 133% | under $21,227 | 2.15% |
| 133% – 150% | $21,227 – $23,940 | 3.23% – 4.30% |
| 150% – 200% | $23,940 – $31,920 | 4.30% – 6.78% |
| 200% – 250% | $31,920 – $39,900 | 6.78% – 8.66% |
| 250% – 300% | $39,900 – $47,880 | 8.66% – 10.22% |
| 300% – 400% | $47,880 – $63,840 | 10.22% |
| Over 400% | over $63,840 | No subsidy |
The cliff hurts most for older enrollees, because premiums for a 60-year-old are 2.7 times those of a 21-year-old. A married couple, both 60, in Miami-Dade County earning $85,560 pays $729 a month for the benchmark plan. At $87,560, $2,000 more, they pay the full $2,907: $26,136 more a year.
If you are close to the line, pre-tax contributions lower MAGI dollar for dollar. Contributing to a traditional 401(k) or IRA, or to an HSA alongside a bronze HSA-eligible plan, can bring income back under the limit. See the 401(k) and IRA calculator for how much you can put in.
A single 40-year-old in Miami-Dade earning $40,000 gets about $395 a month of premium tax credit, which brings the benchmark silver plan down to $289 a month; above $63,840 the credit drops to zero.
| Income | % of poverty line | Monthly credit | Benchmark silver after credit |
|---|---|---|---|
| $20,000 | 125% | $649 | $36 |
| $30,000 | 188% | $530 | $155 |
| $40,000 | 251% | $395 | $289 |
| $55,000 | 345% | $216 | $468 |
| $65,000 | 407% | $0 | $684 |
The benchmark (second-lowest-cost silver) plan for a 40-year-old costs $684 a month before the credit (2026 HealthCare.gov premiums until CMS publishes 2027 rates). The credit is the benchmark minus the IRS expected contribution at each income.
The premium tax credit equals the price of the second-lowest-cost silver plan in your area (the benchmark) minus your expected contribution. For 2027, the expected contribution runs from 2.15% to 10.22% of household income, depending on where your income falls relative to the 2026 federal poverty guidelines. If the benchmark costs less than your contribution, the credit is zero.
400% of the federal poverty line: $63,840 for one person, $86,560 for two and $132,000 for a family of four in the 48 contiguous states (higher in Alaska and Hawaii). The enhanced credits that removed this limit expired on December 31, 2025, and Congress has not extended them, so a household one dollar over the line gets no subsidy at all.
Yes, in full. Starting with 2026 coverage, the caps that used to limit repayment are gone: any advance credit you received above what your final income allows is added to your tax bill. If your income could end up near $63,840 (single), update your Marketplace application during the year or take less of the credit in advance.
Modified adjusted gross income (MAGI) for everyone in your tax household: your adjusted gross income plus untaxed foreign income, tax-exempt interest and non-taxable Social Security benefits. Pre-tax 401(k), traditional IRA and HSA contributions lower MAGI, which is why they are the main way to get back under the 400% line.
In the 40 states plus DC that expanded Medicaid, adults with income below 138% of the poverty line generally qualify for Medicaid and cannot get Marketplace subsidies. In the 10 states that did not expand (Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin and Wyoming), subsidies start at 100% of the poverty line; below that, most adults fall into the coverage gap, except in Georgia and Wisconsin, which cover adults up to 100% through waivers.
If your income is at or below 250% of the poverty line, silver plans come with cost-sharing reductions that cut deductibles and out-of-pocket limits, often making silver the best value even if bronze costs less per month. Above 250%, the subsidy is a fixed dollar amount, so the cheapest bronze plan can drop to very little or nothing, at the cost of a much higher deductible.
The county premiums come from the CMS QHP Landscape file, which covers the 30 states that use HealthCare.gov. States that run their own exchange, such as California, New York, New Jersey, Pennsylvania and Washington, publish premiums separately; the subsidy formula is the same there, so you can enter their benchmark premium into the formula yourself or use the state's own calculator.
This is an estimate, not an eligibility determination or a quote. Your actual credit is set by the Marketplace and reconciled on your tax return. Apply at HealthCare.gov or your state's exchange.