What share of my income do I pay for the benchmark plan in 2027?
The IRS sets a sliding share of household income for the benchmark plan, which is the second lowest cost silver plan in your area. For 2027 it runs from 2.15% at the lowest incomes to 10.22% at 300% of the poverty level and above. The premium tax credit is the benchmark's price minus your share. If you buy the benchmark plan, you pay your share, and the credit pays the rest.
| Income as a share of the poverty level | Share of income for the benchmark plan | One person | Family of four |
|---|---|---|---|
| 100% | 2.15% | $15,960 a year: $29 a month | $33,000 a year: $59 a month |
| 133% | 3.23% | $21,227 a year: $57 a month | $43,890 a year: $118 a month |
| 150% | 4.30% | $23,940 a year: $86 a month | $49,500 a year: $177 a month |
| 200% | 6.78% | $31,920 a year: $180 a month | $66,000 a year: $373 a month |
| 250% | 8.66% | $39,900 a year: $288 a month | $82,500 a year: $595 a month |
| 300% | 10.22% | $47,880 a year: $408 a month | $99,000 a year: $843 a month |
| 350% | 10.22% | $55,860 a year: $476 a month | $115,500 a year: $984 a month |
| 400% | 10.22% | $63,840 a year: $544 a month | $132,000 a year: $1,124 a month |
Between the levels shown, the share rises in a straight line, which is how our premium tax credit calculator works too. The poverty level used for 2027 coverage is the 2026 guideline: $15,960 for one person plus $5,680 for each additional person. Alaska has higher guidelines of $19,950 plus $7,100 for each additional person.
What is the income limit for a premium tax credit in 2027?
Credits stop above 400% of the poverty level, regardless of what coverage costs you. The enhanced subsidies that removed this limit expired after 2025, so the limit is back. For 2027 coverage it is $63,840 for one person and $132,000 for a family of four.
| People in the household | Poverty level | Credit limit (400%) |
|---|---|---|
| 1 | $15,960 | $63,840 |
| 2 | $21,640 | $86,560 |
| 3 | $27,320 | $109,280 |
| 4 | $33,000 | $132,000 |
| 5 | $38,680 | $154,720 |
| 6 | $44,360 | $177,440 |
Income here is your modified adjusted gross income for the whole year, so count side work, overtime and expected raises when you estimate. One dollar over the limit ends the credit.
How is my monthly cost worked out?
Take a household of two earning $60,000. The 2026 poverty level for two people is $21,640, so income is about 277% of it and the 2027 share falls between the 250% and 300% marks at 9.51%. That is about $5,706 a year, or $476 a month, for the benchmark plan.
A plan that costs less than the benchmark lowers your bill below that share, and a plan that costs more adds the difference. The credit is set by the benchmark, so it stays the same whichever plan you pick in your area, up to the price of that plan. Our premium tax credit calculator runs these numbers for your own household.
What if my income is below the poverty level?
Marketplace tax credits generally start at 100% of the poverty level. In states that have not fully expanded Medicaid, an adult below that level who does not fit a Medicaid group can fall into what is called the coverage gap: no Medicaid and no tax credit. Six of our states are in that group: Florida, Georgia, Kansas, South Carolina, Tennessee and Texas.
In the other 16 states, adults with low incomes generally qualify for Medicaid instead, so the premium tax credit starts at a higher income. Our guide to the 2027 Medicaid work requirements covers the new rules there.
What if my employer offers coverage?
For 2027, job based coverage is treated as affordable if the employee-only cost of the lowest cost plan is 10.22% of household income or less, according to the IRS. If it costs more than that, you may qualify for a premium tax credit instead, though you give up your employer's contribution. If it costs less, you generally do not qualify for a credit.
What if my income changes during the year?
Credits are paid in advance based on the income you estimate, and you reconcile on your tax return. Starting with 2026, there is no cap on how much of an excess advance credit you must repay, so update your marketplace application when your income changes.
See our Individual & Family plans
Major medical coverage for you and your household, with subsidies applied where you qualify.2027 health insurance subsidy calculator
Enter your state, household size and income to see your 2027 expected premium, your savings and whether Medicaid may apply.
Talk to a licensed agent
We compare plans, explain the tradeoffs and help you enroll. It costs you nothing.