What happened to the enhanced subsidies?
From 2021 through 2025, the American Rescue Plan and Inflation Reduction Act boosted marketplace subsidies significantly. People above 400% of the federal poverty level (FPL) could get help for the first time, and everyone below that threshold paid less.
Those enhancements expired on December 31, 2025. Congress tried to extend them. The House passed a three-year extension in January 2026 with bipartisan support (230-196), but it stalled in the Senate. No extension passed, so the original ACA rules apply again for 2027.
The practical result: subsidies still exist, but they're smaller, and fewer people qualify.
Who qualifies for a subsidy in 2027?
You can get a premium tax credit (PTC) for 2027 coverage if all of these are true:
- Your household income is between 100% and 400% of the federal poverty level. In states that expanded Medicaid, the effective floor is about 138% FPL, since Medicaid covers people below that.
- You don't have an offer of affordable employer coverage. For 2027, employer coverage counts as affordable if your share of the premium for self-only coverage is 10.22% of household income or less.
- You are a U.S. citizen or national, a green card holder, a Cuban or Haitian entrant, or a COFA migrant (see the immigrant rules below).
Subsidies for 2027 coverage use the 2026 federal poverty guidelines. For the 48 contiguous states and D.C.:
| Household size | 100% FPL | 138% FPL | 250% FPL | 400% FPL (subsidy cap) |
|---|---|---|---|---|
| 1 person | $15,960 | $22,025 | $39,900 | $63,840 |
| 2 people | $21,640 | $29,863 | $54,100 | $86,560 |
| 3 people | $27,320 | $37,702 | $68,300 | $109,280 |
| 4 people | $33,000 | $45,540 | $82,500 | $132,000 |
Alaska and Hawaii have higher guidelines. For a single person, the 400% FPL cap is $79,800 in Alaska and $73,440 in Hawaii.
The subsidy cliff is back
This is the biggest change. During the enhanced period, subsidies phased out gradually. A household at 450% FPL still got some help. Now there is a hard cutoff at 400% FPL.
That means a single person earning $63,840 can get a subsidy, but someone earning $64,000 gets nothing. A few hundred dollars of extra income can mean thousands of dollars in lost premium help. If your income is anywhere near that line, it matters a lot for tax planning.
How much do you pay toward your premium?
Under the original ACA rules (which are back in effect), the tax credit is set so that you pay a fixed percentage of your income for the benchmark Silver plan in your area. The percentage depends on your income as a share of FPL. The rates for 2027:
| Income (% of FPL) | You pay (% of income) |
|---|---|
| Up to 133% | 2.15% |
| 133% - 150% | 3.23% - 4.30% |
| 150% - 200% | 4.30% - 6.78% |
| 200% - 250% | 6.78% - 8.66% |
| 250% - 300% | 8.66% - 10.22% |
| 300% - 400% | 10.22% |
| Above 400% | No subsidy |
For example, a single person earning $35,000 is at about 219% FPL and is expected to pay about 7.5% of income, or roughly $219 a month, for the benchmark Silver plan. The tax credit covers the rest of that plan's price. You can put the same credit toward a cheaper or more expensive plan.
These rates are higher than in 2026, when the top rate was 9.96%. Compare that to the enhanced rates, where the cap was 8.5% and there was no income ceiling. A 60-year-old couple near 400% FPL could go from paying about 8.5% of income to paying full price, a swing of over $15,000 per year.
New limits for immigrants in 2027
Starting January 1, 2027, premium tax credits and cost-sharing reductions are only available to:
- U.S. citizens and nationals
- Lawful permanent residents (green card holders)
- Cuban and Haitian entrants
- People living here under a Compact of Free Association (COFA migrants)
Other lawfully present immigrants, including refugees and asylees who don't yet have a green card, people with Temporary Protected Status, and most visa holders, can still buy a marketplace plan, but they pay full price. DACA recipients are not eligible for marketplace coverage.
What about cost-sharing reductions?
Cost-sharing reductions (CSR) were not part of the enhanced subsidy changes, so they work the same as before. If your income is below 250% FPL and you pick a Silver plan, the insurer is required to give you a version with lower deductibles, copays, and out-of-pocket limits. For 2027, the standard out-of-pocket maximum is $12,000 for one person. CSR plans cap it much lower:
- 100% - 150% FPL: Silver plan with 94% actuarial value. Deductibles close to $0. Very low copays. Out-of-pocket maximum of $4,000 for one person.
- 150% - 200% FPL: Silver plan with 87% AV. Deductibles around $800-$1,500. Out-of-pocket maximum of $4,000 for one person.
- 200% - 250% FPL: Silver plan with 73% AV. Moderate reduction in deductibles and copays. Out-of-pocket maximum of $9,600 for one person.
CSR only applies to Silver plans. This is why Silver is often the best value for lower-income households, even if a Bronze plan has a lower sticker price.
Reconciling at tax time
If you get your tax credit in advance, you settle up on Form 8962 when you file your taxes. Starting with 2026 coverage, there is no cap on how much excess credit you have to pay back if your income comes in higher than you estimated. If your income ends up above 400% FPL, you repay all of it.
For 2026 and 2027 coverage, the marketplace can't cut off your advance tax credit because you didn't file and reconcile for a past year. That is not a reason to skip it. You still need to file to settle what you received.
Try the calculator
Plug in your ZIP code, income, age, and household size to get a rough estimate for 2027 coverage from the actual CMS Marketplace API.
Subsidy Estimator
Enter your info below to get a rough estimate of your monthly premium tax credit for a 2027 marketplace plan.
What should you do right now?
Open Enrollment for 2027 coverage runs from November 1, 2026 through January 15, 2027 on HealthCare.gov. Enroll by December 15 for coverage starting January 1. If you already have a marketplace plan, don't just let it renew. Log into HealthCare.gov (or your state exchange), update your 2027 income, and compare your new premium and tax credit against other plans. See our Open Enrollment 2027 guide for the details.
Outside Open Enrollment, you can still enroll during a Special Enrollment Period if you recently lost other coverage, moved, had a baby, or experienced certain other qualifying events.
If your income is near 400% FPL, talk to an accountant or use a marketplace calculator before you enroll. Contributing to a traditional IRA or HSA can lower your modified adjusted gross income enough to keep you under the cliff. Bronze and catastrophic marketplace plans are HSA-eligible starting in 2026.