ACA Subsidies for 2027: What Changed and Who Still Qualifies

Key takeaways

• ACA subsidies for 2027 follow the standard rules again. The enhanced credits that reached people above 400% of the federal poverty line ended after 2025.
• If your income is over 400% of the poverty line, you get no premium tax credit, and there's no cap on what you may have to repay.
• Open Enrollment on HealthCare.gov runs November 1, 2026, to January 15, 2027. Enroll by December 15 for coverage starting January 1.

ACA subsidies for 2027 look different from what many people got in recent years. If you buy your own health insurance through the Marketplace, the help you get with your premium may change, and some people will lose it entirely. If you're in your late 50s or early 60s and not yet on Medicare, it's worth a close look. Here's what changed and how to plan.

What ACA subsidies are

The main ACA subsidy is the premium tax credit. It's a tax credit that lowers your monthly premium for a plan bought through the Health Insurance Marketplace.

You can use all, some or none of the credit in advance to lower your monthly bill. Those are called advance payments. Then, when you file your taxes, you compare the credit you actually qualify for with what was paid in advance on Form 8962.

The size of your credit is generally the premium for the second-lowest-cost silver plan in your area, minus a set percentage of your household income. The credit can't be more than the premium for the plan you choose.

What changed for ACA subsidies in 2027

The enhanced credits ended after 2025

For tax years 2021 through 2025, Congress temporarily removed the rule that household income can't be more than 400% of the federal poverty line. That let people with incomes above that line claim the credit if they were otherwise eligible.

That expansion is over. For 2026 and 2027, the standard rule applies again: your household income must generally be at least 100% and no more than 400% of the federal poverty line for your family size.

The 400% "cliff" is back

If your household income for the year is more than 400% of the poverty line, you aren't allowed a premium tax credit. And if credits were paid in advance on your behalf, you must repay all of them.

The IRS advises that if your projected income is close to the 400% limit, you should carefully consider how much advance credit you take.

Marketplace savings for a given year are figured using the prior year's poverty guidelines. HealthCare.gov lists these 2026 figures:

The 400% column is simply the poverty line multiplied by four. Check HealthCare.gov for your exact situation.

There's no repayment cap starting in tax year 2026

This change matters even if your income is under 400%. In past years, people below 400% had a cap on how much extra credit they'd have to pay back. For tax years after 2025, there's no repayment cap. If your final credit is less than your advance payments, the full difference is subtracted from your refund or added to the tax you owe.

That means more income than you expected, or a change like marriage or divorce, could leave you with a tax bill when you file.

The 2027 income percentages

Each year the IRS publishes the percentages used to figure your expected share of the benchmark premium. For 2027, they range from 2.15% of household income for the lowest incomes to 10.22% for incomes from 300% up to 400% of the poverty line.

Who still qualifies for 2027

To get the premium tax credit, you generally must:

• Have household income between 100% and 400% of the federal poverty line
• Buy your plan through the Marketplace
• Not be eligible for affordable employer coverage that provides minimum value
• Not be eligible for government coverage like Medicare, Medicaid or TRICARE
• Not be claimed as someone else's dependent
• If married, file a joint return (with limited exceptions)

If you're nearing 65, note the Medicare rule. Once you're eligible for Medicare, you generally can't get the credit. Our turning 65 Medicare checklist can help you time the switch.

2027 open enrollment dates

On HealthCare.gov, here are the key dates for 2027 coverage:

How you apply depends on whether your state has its own Marketplace. HealthCare.gov's Marketplace in your state page shows where to go.

How to protect yourself from a surprise tax bill

• Estimate your 2027 income carefully. Your credit is based on the income you enter on your application.
• Report changes right away. The IRS says telling the Marketplace about income or family changes as soon as they happen helps keep your advance payments accurate.
• Watch the 400% line. If you're close to it, consider taking less of the credit in advance.
• Plan for one-time income. A large one-time payment that counts as household income can push you over the limit.

The bottom line

ACA subsidies for 2027 are narrower than in recent years. The 400% cliff is back, and there's no cap on repayment. You may still qualify, but it's worth checking your numbers before you enroll.

A licensed agent can estimate your credit and compare Marketplace plans on our ACA health insurance page.