ACA Subsidy Calculator for 2027: Premium Tax Credit Estimate
For 2027 coverage, the premium tax credit is available to households with income of 100% to 400% of the federal poverty line, which is $15,960 to $63,840 for one person (2026 guidelines, 48 states and D.C.). The credit pays the difference between the benchmark plan premium and a required contribution of 2.15% to 10.22% of household income, set for 2027 by IRS Rev. Proc. 2026-26. Enter your household, your expected income and the benchmark premium from your Marketplace to estimate the credit, for 2027 coverage or for 2026 coverage when you file your 2026 return.
Maintained by Archie Chang · Sources checked against IRS, statute and HealthCare.gov text on October 31, 2026 · Methodology & sources
Not tax advice. FedRateCalc is independent and is not affiliated with the Internal Revenue Service, the Department of Health and Human Services or any Marketplace. This is an estimate. Your Marketplace decides the advance payments, and your tax return (Form 8962) settles the actual credit. Ages, cost-sharing reductions, employer coverage and other facts can change the result, so check HealthCare.gov or your state Marketplace before you rely on a number. For the income tied to the same poverty guidelines, see the federal poverty level calculator.
ACA subsidy calculator
Your household and plan
$
$
The benchmark plan is the second lowest cost silver plan for your household in your area, at its full monthly price before any tax credit. Get it from the plan preview on HealthCare.gov or your state Marketplace site: enter everyone in the household, compare the silver plans by full monthly price and take the second lowest. The $500 here is only an example.
Planning for 2027: if your actual 2027 income ends up below 100% of the guideline, the same reconciliation exception applies when you file (26 CFR 1.36B-2(b)(6)), as long as the Marketplace estimated at enrollment that your income would be at least 100% and advance payments were made. Choose 2026 coverage to see how it is figured.
$
The credit cannot be more than this premium. Leave it blank to see the credit without that limit.
The starting numbers are an example, not a recommendation or your premium. Replace them with yours.
Your estimate
1. Income as a share of the poverty guideline. $40,000 divided by $15,960 (2026 guideline, 1 person) is 250.62%. For 2027 coverage the credit uses the 2026 guidelines.
2. Applicable percentage. Your row in the Rev. Proc. 2026-26 table is “At least 250% but less than 300%”. Inside the row the percentage rises in a straight line, which gives 8.68% of household income.
3. Expected contribution. $40,000.00 times 8.68% is $3,472.00 a year, or $289.33 a month.
4. Credit. The benchmark premium $500.00 minus $289.33 is $210.67 a month.
Estimated premium tax credit
$210.67 a month
$2,528.04 a year for twelve months of coverage
An estimate. The Marketplace and your tax return (Form 8962) settle the actual credit.
Range for a household of 1 in 48 contiguous states and D.C., 2027 coverage (2026 guidelines): $15,960 to $63,840 a year. Upper limit 400% of the guideline.
Who can get the premium tax credit
The IRS words the income range this way, and the statute says it in these words:
“In general, individuals and families may be eligible for the Premium Tax Credit if their household income for the year is at least 100 percent but no more than 400 percent of the federal poverty line for their family size.”
IRS, Questions and answers on the Premium Tax Credit, Q7
“The term “applicable taxpayer” means, with respect to any taxable year, a taxpayer whose household income for the taxable year equals or exceeds 100 percent but does not exceed 400 percent of an amount equal to the poverty line for a family of the size involved.”
26 U.S.C. 36B(c)(1)(A)
The IRS lists the other requirements:
“Have household income that meets certain requirements (see Q7). Do not file a Married Filing Separately tax return (unless you qualify for a special rule that allows certain victims of domestic abuse and spousal abandonment to claim the Premium Tax Credit using the Married Filing Separately filing status (see Q9 and Q10). Cannot be claimed as a dependent by another person; and For at least 1 month in the year all of the following requirements are met: You or another family member were enrolled in coverage (excluding "catastrophic" coverage) through a Marketplace; The individual enrolled was not able to get affordable coverage through an eligible employer-sponsored plan that provides minimum value (see Q11-15) The individual enrolled was not eligible for coverage through a government program, like Medicaid, Medicare, CHIP or TRICARE; and The share of premiums for the month not covered by advance credit payments was paid, or special circumstances applied that allowed you to stay covered despite all of your premiums not having been paid. See instructions for Form 8962 for more information.”
IRS, Questions and answers on the Premium Tax Credit, Q5
The credit depends on your household and your household income, which the IRS defines like this (Medicaid eligibility is a separate test; see the Medicaid income limits and Medicare vs. Medicaid pages):
“For purposes of the Premium Tax Credit, your “family” consists of yourself, your spouse if filing jointly, and all other individuals whom you claim as dependents. Your “family size” is the number of individuals in your “family.””
IRS, Questions and answers on the Premium Tax Credit, Q6
“For purposes of the Premium Tax Credit, your household income is your modified adjusted gross income for the year plus that of every other member of your family (see Q6) who is required to file a federal income tax return. Modified adjusted gross income is the adjusted gross income on your federal income tax return plus any excluded foreign income, nontaxable Social Security benefits (including tier 1 railroad retirement benefits), and tax-exempt interest received or accrued during the taxable year. It does not include Supplemental Security Income (SSI). If the source of your income is within Puerto Rico or was effectively connected with the conduct of a trade or business within Puerto Rico, the income is not included in your modified adjusted gross income and is not used in determining your household income. This limitation is specific to the computation of modified adjusted gross income for purposes of the Premium Tax Credit.”
IRS, Questions and answers on the Premium Tax Credit, Q8
To turn a paycheck into an annual figure first, see the paycheck calculator; to see where your taxable income falls, see the 2026 and 2027 federal tax brackets. Modified adjusted gross income for the credit also counts items that are not in your taxable income, as the quote above says.
Below the range, HealthCare.gov says the following about Medicaid, and about states that did not expand it:
“Income below 138% federal poverty level: If your state has expanded Medicaid, you may qualify for Medicaid.”
HealthCare.gov, Federal poverty level (FPL)
“In states that have expanded Medicaid coverage: You can qualify based on your income alone. If your household income is below 133% of the federal poverty level (FPL), you qualify. (Because of the way this is calculated, it turns out to be 138% of the federal poverty level. A few states use a different income limit.)”
HealthCare.gov, Medicaid expansion & you
“If your state hasn’t expanded Medicaid, your income is below the federal poverty level, and you don't qualify for Medicaid under your state's current rules, you won’t qualify for either health insurance savings program: Medicaid coverage or savings on a private health plan bought through the Marketplace.”
HealthCare.gov, Medicaid expansion & you
A household with income from 100% of the poverty line up to 138% can be in this position: in a state that expanded Medicaid, adults at that income generally qualify for Medicaid, and the IRS requirement above that you were not eligible for a government program such as Medicaid then rules out the credit. The calculator shows a Medicaid reminder in that income range for 2027 coverage; see the Medicaid income limits by state. For 2026 coverage, when you reconcile on your return, the regulation looks at what the Marketplace determined when you enrolled:
“An individual is treated as not eligible for Medicaid, CHIP, or a similar program such as a Basic Health Program, for a period of coverage under a qualified health plan if, when the individual enrolls in the qualified health plan, an Exchange conducts an eligibility determination or, if applicable, eligibility assessment (within the meaning of 45 CFR 155.302(b)) for Medicaid, CHIP, or a similar program and determines or assesses the individual to be not eligible for coverage under the program. This paragraph (c)(2)(v) does not apply for an individual who, with intentional or reckless disregard for the facts, provides incorrect information to an Exchange for the year of coverage.”
26 CFR 1.36B-2(c)(2)(v)
Income below 100% when you file: the reconciliation exception
The credit generally starts at 100% of the poverty line, but the regulation treats some taxpayers whose actual income turned out lower as applicable taxpayers, and says how the credit is then figured:
“A taxpayer (other than a taxpayer described in paragraph (b)(5) of this section) whose household income for a taxable year is less than 100 percent of the Federal poverty line for the taxpayer's family size is treated as an applicable taxpayer for the taxable year if— (A) The taxpayer or a family member enrolls in a qualified health plan through an Exchange for one or more months during the taxable year; (B) An Exchange estimates at the time of enrollment that the taxpayer's household income will be at least 100 percent but not more than 400 percent of the Federal poverty line for the taxable year; (C) Advance credit payments are authorized and paid for one or more months during the taxable year; and (D) The taxpayer would be an applicable taxpayer if the taxpayer's household income for the taxable year was at least 100 but not more than 400 percent of the Federal poverty line for the taxpayer's family size.”
26 CFR 1.36B-2(b)(6)(i)
“This paragraph (b)(6) does not apply for an individual who, with intentional or reckless disregard for the facts, provides incorrect information to an Exchange for the year of coverage.”
26 CFR 1.36B-2(b)(6)(ii)
“If a taxpayer is treated as an applicable taxpayer under paragraph (b)(5) or (b)(6) of this section, the taxpayer's actual household income for the taxable year is used to compute the premium assistance amounts under § 1.36B-3(d).”
26 CFR 1.36B-2(b)(7)
The IRS repeats the conditions in the Form 8962 instructions (2025):
“You may qualify for the PTC if your household income is less than 100% of the federal poverty line and you meet all of the following requirements. • No one can claim you as a dependent for the year. • You or an individual in your tax family enrolled in a qualified health plan through a Marketplace. • The Marketplace estimated at the time of enrollment that your household income would be at least 100% of the federal poverty line for your family size for 2025. • APTC was paid for the coverage of 1 or more months during 2025. • You otherwise qualify as an applicable taxpayer (except for the federal poverty line percentage).”
IRS, Instructions for Form 8962 (2025), Line 5
“You do not meet the requirements under Estimated household income at least 100% of the federal poverty line, earlier, if: • No APTC was paid for your or your family’s coverage; or • You, with intentional or reckless disregard for the facts, provided incorrect information to a Marketplace for the year of coverage. See Pub. 974 for more information.”
IRS, Instructions for Form 8962 (2025), Line 5
For 2026 coverage the calculator has a box for this case. When it is checked and your income is below 100%, the calculator uses your actual income and the first-row percentage of the Rev. Proc. 2025-25 table, which is flat below 133%. The 2026 Form 8962 instructions had not been issued as of October 31, 2026; the 2025 instructions send you on to Table 2 with the whole-percent figure, and the first row is the one that applies below 133%. For 2027 coverage the same exception is in the regulation, and it applies when you reconcile on your 2027 return.
Are the extra credits for 2021 through 2025 still in place?
As of October 31, 2026, no. The IRS says Congress removed the 400% limit only for tax years 2021 through 2025, and the statute has the same dates:
“For tax years 2021 through 2025, Congress temporarily expanded eligibility for the Premium Tax Credit by eliminating the requirement that a taxpayer’s household income may not be more than 400 percent of the federal poverty line. Under this rule, taxpayers with household income of more than 400 percent of the federal poverty line for their family size may be allowed to claim a Premium Tax Credit, if otherwise eligible (see Q5).”
IRS, Questions and answers on the Premium Tax Credit, Q7
“In the case of a taxable year beginning after December 31, 2020, and before January 1, 2026, subparagraph (A) shall be applied without regard to “but does not exceed 400 percent”.”
26 U.S.C. 36B(c)(1)(E)
The U.S. Code on uscode.house.gov (Cornell LII copy) states that it is current through Public Law 119-136 (October 22, 2026), and its text of section 36B still limits the temporary 2021 through 2025 table and the temporary rule to taxable years before January 1, 2026. It shows no later extension. So this calculator applies the 400% limit and the tables in the next sections to both 2026 and 2027 coverage. If Congress changes the law, the page needs a new review; the date at the top shows when the sources were last checked.
How the credit is computed
The IRS explains the credit as the benchmark premium minus a share of income, and as the lesser of two amounts for each month:
“The amount of the Premium Tax Credit is generally equal to the premium for the second lowest cost silver plan available through the Marketplace that applies to the members of your coverage family, minus a certain percentage of your household income. However, the credit cannot be more than the premiums for the Marketplace plan or plans in which you or your family enroll (called your enrollment premiums). Your coverage family consists of the members of your family who are enrolled in coverage through the Marketplace and ineligible for non-Marketplace coverage such as Medicare, Medicaid or affordable employer-sponsored coverage that provides minimum value. However, a family member is part of your coverage family for a month only if the share of premiums for the month not covered by advance credit payments was paid, or special circumstances applied that allowed the family member to stay covered despite all of the premiums not having been paid.”
IRS, Questions and answers on the Premium Tax Credit, Q24
“Your credit amount for each month is the lesser of: • The enrollment premiums (described next) for the month for one or more qualified health plans in which you or any individual in your tax family enrolled, or • The amount of the monthly applicable second lowest cost silver plan (SLCSP) premium (described later) less your monthly contribution amount (described later).”
IRS, Instructions for Form 8962 (2025), Monthly credit amount
The benchmark plan is the second lowest cost silver plan. The IRS adds a rule for areas with few silver plans:
“If there is only one silver plan, that plan is treated as the second lowest cost silver plan. If the two lowest cost silver plans have identical premiums, that premium is the premium for the second lowest cost silver plan.”
IRS, Questions and answers on the Premium Tax Credit, Q25
The regulation turns the percentage into dollars:
“The applicable percentage multiplied by a taxpayer's household income determines the taxpayer's annual required share of premiums for the benchmark plan. The required share is divided by 12 and this monthly amount is subtracted from the adjusted monthly premium for the applicable benchmark plan when computing the premium assistance amount.”
26 CFR 1.36B-3(g)(1)
For example, a benchmark premium of $500 a month and an expected contribution of $200 a month would leave a credit of $300 a month, unless the plan you pick costs less than that.
Applicable percentage tables for 2027 and 2026
The IRS publishes the table each year. Rev. Proc. 2026-26 gives the table for taxable years beginning in 2027 and Rev. Proc. 2025-25 the one for 2026.
“This revenue procedure is effective for taxable years and plan years beginning in calendar year 2027.”
Rev. Proc. 2026-26, section 5
2027 applicable percentage table (Rev. Proc. 2026-26, section 3.01), taxable years beginning in 2027
Household income as a percentage of the Federal poverty line
Initial percentage
Final percentage
Less than 133%
2.15%
2.15%
At least 133% but less than 150%
3.23%
4.3%
At least 150% but less than 200%
4.3%
6.78%
At least 200% but less than 250%
6.78%
8.66%
At least 250% but less than 300%
8.66%
10.22%
At least 300% but not more than 400%
10.22%
10.22%
“This revenue procedure is effective for taxable years and plan years beginning in calendar year 2026.”
Rev. Proc. 2025-25, section 5
2026 applicable percentage table (Rev. Proc. 2025-25, section 3.01), taxable years beginning in 2026
Household income as a percentage of the Federal poverty line
Initial percentage
Final percentage
Less than 133%
2.10%
2.10%
At least 133% but less than 150%
3.14%
4.19%
At least 150% but less than 200%
4.19%
6.60%
At least 200% but less than 250%
6.60%
8.44%
At least 250% but less than 300%
8.44%
9.96%
At least 300% but not more than 400%
9.96%
9.96%
How the percentage is figured inside a row
“An applicable percentage within an income category increases on a sliding scale in a linear manner and is rounded to the nearest one-hundredth of one percent.”
26 CFR 1.36B-3(g)(1)
“A's household income is 275 percent of the Federal Poverty line for A's family size for that taxable year. In the table in paragraph (g)(2) of this section, the initial percentage for a taxpayer with household income of 250 to 300 percent of the Federal poverty line is 8.05 and the final percentage is 9.5. A's Federal poverty line percentage of 275 percent is halfway between 250 percent and 300 percent. Thus, rounded to the nearest one-hundredth of one percent, A's applicable percentage is 8.78, which is halfway between the initial percentage of 8.05 and the final percentage of 9.5.”
26 CFR 1.36B-3(g)(3), Example 1
The calculator does the same: it finds your income as a share of the poverty guideline, interpolates in a straight line between the row’s initial and final percentage, and rounds to the nearest one-hundredth of one percent, with a tie rounding up as in the regulation’s example. Below 133% the percentage is the flat first-row figure.
Form 8962 uses whole percentages
The tax form works in whole percents. Its worksheet and its Table 2 say (the instructions for 2026 had not been issued as of October 31, 2026; the 2025 instructions are quoted):
“Do not round; instead, multiply this number by 100 (to express it as a percentage) and then drop any numbers after the decimal point.”
IRS, Instructions for Form 8962 (2025), Worksheet 2
“Enter on line 7 the decimal number from Table 2 that applies to the amount you entered on line 5. This number is used to calculate your contribution amount.”
IRS, Instructions for Form 8962 (2025), Line 7
So the credit on your return can differ from this estimate by a small amount, because the form uses one figure per whole percent while the calculator uses your exact percentage.
Income limits by household size
The table for 2027 coverage uses the 2026 poverty guidelines (91 FR 1797), and the table for 2026 coverage uses the 2025 guidelines (90 FR 5917). The lower figure is 100% of the guideline and the upper figure is 400%. For a household of nine or more, add the amount in the last row for each person above eight.
Income range for 2027 coverage: 100% and 400% of the 2026 poverty guidelines (annual household income)
Household size
48 contiguous states and D.C.
Alaska
Hawaii
100%
400%
100%
400%
100%
400%
1
$15,960
$63,840
$19,950
$79,800
$18,360
$73,440
2
$21,640
$86,560
$27,050
$108,200
$24,890
$99,560
3
$27,320
$109,280
$34,150
$136,600
$31,420
$125,680
4
$33,000
$132,000
$41,250
$165,000
$37,950
$151,800
5
$38,680
$154,720
$48,350
$193,400
$44,480
$177,920
6
$44,360
$177,440
$55,450
$221,800
$51,010
$204,040
7
$50,040
$200,160
$62,550
$250,200
$57,540
$230,160
8
$55,720
$222,880
$69,650
$278,600
$64,070
$256,280
Each additional person
+$5,680
+$22,720
+$7,100
+$28,400
+$6,530
+$26,120
Income range for 2026 coverage: 100% and 400% of the 2025 poverty guidelines (annual household income)
Which poverty guidelines apply to which coverage year
The regulation sets the rule, and the IRS gives an example:
“The Federal poverty line means the most recently published poverty guidelines (updated periodically in the Federal Register by the Secretary of Health and Human Services under the authority of 42 U.S.C. 9902(2)) as of the first day of the regular enrollment period for coverage by a qualified health plan offered through an Exchange for a calendar year. Thus, the Federal poverty line for computing the premium tax credit for a taxable year is the Federal poverty line in effect on the first day of the initial or annual open enrollment period preceding that taxable year. See 45 CFR 155.410.”
26 CFR 1.36B-1(h)
“If a taxpayer's primary residence changes during a taxable year from one state to a state with different Federal poverty guidelines or married taxpayers reside in separate states with different Federal poverty guidelines (for example, Alaska or Hawaii and another state), the Federal poverty line that applies for purposes of section 36B and the associated regulations is the higher Federal poverty guideline (resulting in a lower percentage of the Federal poverty line for the taxpayers' household income and family size).”
26 CFR 1.36B-1(h)
“For purposes of the Premium Tax Credit, eligibility for a certain year is based on the most recently published set of federal poverty guidelines on the first day of the annual open enrollment period. For example, the tax credit for 2025 is based on the 2024 FPL.”
IRS, Questions and answers on the Premium Tax Credit, Q7
For 2026 coverage the regulation on open enrollment said:
“Subject to paragraphs (e)(4)(ii) and (iii) of this section, the annual open enrollment period begins on November 1 of the calendar year preceding the benefit year and extends through January 15 of the benefit year.”
45 CFR 155.410(e)(4)(i)
Open enrollment for 2027 coverage begins on November 1, 2026 (CMS; see the open enrollment section below), which is after the 2026 guidelines were published on January 15, 2026. Under the regulation 2027 coverage therefore uses the 2026 guidelines. The 2027 guidelines do not apply to 2027 coverage. Open enrollment for 2026 coverage began on November 1, 2025 at the latest, before the 2026 guidelines were published, so 2026 coverage uses the 2025 guidelines. That is this page’s reading of the quoted rules; the IRS example above states the same method.
Where to find your benchmark premium and where to apply
You need the full monthly price of the second lowest cost silver plan for your household. HealthCare.gov lets you preview plans and prices before you apply, and says when exact prices appear and what the credit depends on:
“You'll get exact plan prices and savings when you fill out a Marketplace application.”
HealthCare.gov, Saving money on health insurance
“The amount of your premium tax credit depends on the household size and estimated income you put on your Marketplace application.”
HealthCare.gov, How to save on your monthly insurance bill
Enter the same household members and income you will use on your application, compare the silver plans by full monthly price before any tax credit, and take the second lowest price. After the year, your Form 1095-A reports the figure the IRS uses:
“The SLCSP premium is not the same as your enrollment premium, unless you enroll in the applicable SLCSP. Form 1095-A, Part III, column B, generally reports the applicable SLCSP premium. If no APTC was paid for your coverage, Form 1095-A, Part III, column B, may be wrong or blank or may report your applicable SLCSP premium as -0-. Also, if you had a change in circumstances during 2025 that you did not report to the Marketplace, the SLCSP premium reported in Part III, column B, may be wrong. In either case, you must determine your correct applicable SLCSP premium.”
IRS, Instructions for Form 8962 (2025), Applicable SLCSP premium
Where you apply depends on your state. Some states run their own Marketplace website, and HealthCare.gov is the Marketplace only in the others. Use the HealthCare.gov page for your state to see which applies to you, and use your state Marketplace’s own site if it has one:
“How you apply depends on if your state has its own Marketplace. Pick your state to find how to get coverage.”
HealthCare.gov, The Marketplace in your state
“Changes in Oregon for 2027 Starting November 1, Oregon residents will use ExploreHealthOR.gov to enroll in 2027 coverage.”
HealthCare.gov, The Marketplace in your state
A state Marketplace can show different plans and prices from the ones on HealthCare.gov, so take the benchmark premium from the site you will apply on.
Open enrollment for 2027 coverage
CMS and HealthCare.gov give these dates for coverage through HealthCare.gov:
“The Open Enrollment Period to choose Healthcare.gov coverage for 2027 begins on November 1, 2026, and runs through January 15, 2027.”
CMS, Plan Year 2027 Marketplace Plans and Prices Fact Sheet (October 30, 2026)
“Open Enrollment for 2027 starts November 1”
HealthCare.gov, dates and deadlines
“November 1: Open Enrollment starts — first day you can enroll in, renew, or change health plans through the Marketplace for the coming year. Coverage can start as soon as January 1. December 15: Last day to enroll in or change plans for coverage to start January 1. January 1: Coverage starts for those who enroll in or change plans by December 15 and pay their first premium. January 15: Open Enrollment ends — last day to enroll in or change Marketplace health plans for the year. After this date, you can enroll in or change plans only if you qualify for a Special Enrollment Period. February 1: Coverage starts for those who enroll in or change plans December 16 through January 15 and pay their first premium.”
HealthCare.gov, dates and deadlines
States with their own Marketplace can set different dates, so check your state’s site. HealthCare.gov’s state page shows which Marketplace you use.
Advance payments, Form 8962 and what you may have to repay
“When you enroll in Marketplace insurance, you can choose to have the Marketplace compute an estimated credit that is paid to your insurance company to lower what you pay for your monthly premiums (called advance payments of the Premium Tax Credit, APTC, or advance credit payments). Or, you can choose to get all of the benefit of the credit when you file your tax return for the year. If you choose to have advance payments of the Premium Tax Credit made on your behalf, you will reconcile the amount paid in advance with the actual credit you compute when you file your tax return for the year. Either way, you will complete Form 8962, Premium Tax Credit (PTC), and attach it to your tax return for the year.”
IRS, Questions and answers on the Premium Tax Credit, Q1
“The credit is “refundable” because, if the amount of the credit is more than the amount of your tax liability, you will receive the difference as a refund. If you owe no tax, you can get the full amount of the credit as a refund. However, if advance credit payments were made to your insurance company and your actual allowable credit on your return is less than your advance credit payments, the difference, (called excess advance payment of the PTC), subject to repayment caps, will be subtracted from your refund or added to your balance due (except for tax year 2020 when excess advance payment of the PTC did not affect tax liability). For tax years before 2026 (other than 2020), if your allowable credit is less than your advance credit payments, a repayment cap may limit the amount of the excess advance payment of the PTC that is subtracted from your refund or added to your balance due. However, for tax years after 2025, if your allowable credit is less than your advance credit payments, there is no repayment cap and the total difference will be subtracted from your refund or added to your balance due (see Q31).”
IRS, Questions and answers on the Premium Tax Credit, Q1
“If you're worried about having to pay back advance payments of the premium tax credit, you can decide to use less or none of the tax credit toward your premium each month.”
HealthCare.gov, How to save on your monthly insurance bill
Repayment limits changed for tax years after 2025. The IRS says there is no repayment cap, and the statute now reads as follows after Public Law 119-21, section 71305:
“There is no repayment cap for tax years after 2025. For tax years after 2025, you must repay the full amount by which your advance credit payments exceed your Premium Tax Credit. This amount is added to your total tax liability, which will reduce your refund or increase your balance due.”
IRS, Questions and answers on the Premium Tax Credit, Q31
“If the advance payments to a taxpayer under section 1412 of the Patient Protection and Affordable Care Act for a taxable year exceed the credit allowed by this section (determined without regard to paragraph (1)), the tax imposed by this chapter for the taxable year shall be increased by the amount of such excess.”
26 U.S.C. 36B(f)(2)
“Subsec. (f)(2). Pub. L. 119-21, § 71305(a), (b)(1), struck out subpar. (A) designation and heading and subpar. (B) which related to limitation on increase of advance payments under section 1412 of the Patient Protection and Affordable Care Act to a taxpayer whose household income is less than 400 percent of the poverty line for the size of the family involved for the taxable year.”
26 U.S.C. 36B, amendment notes
“Amendment by section 71305 of Pub. L. 119-21, applicable to taxable years beginning after Dec. 31, 2025, see section 71305(c) of Pub. L. 119-21 set out as a note under section 35 of this title.”
26 U.S.C. 36B, effective date notes
That means that for 2026 coverage and later the calculator’s result is not a limit on what you could owe: if you take advance payments and your income turns out higher, the difference is repaid in full on your return. The calculator does not compute repayment.
Changes from Public Law 119-21 that reach 2026 and 2027
Public Law 119-21 (July 4, 2025) amended section 36B. These changes, with the dates the U.S. Code gives, affect who can get the credit:
Taxable years beginning after December 31, 2025 (2026 coverage and later)
“Subsec. (c)(1)(B). Pub. L. 119-21, § 71302(a), struck out subpar. (B) which related to a special rule for certain individuals lawfully present in the United States for treatment as an applicable taxpayer.”
26 U.S.C. 36B, amendment notes
“Pub. L. 119-21, title VII, § 71302(b), July 4, 2025, 139 Stat. 323, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2025.””
26 U.S.C. 36B, effective date notes
Plan years beginning after December 31, 2025 (2026 coverage and later)
“Such term shall not include any plan enrolled in during a special enrollment period provided for by an Exchange— (I) on the basis of the relationship of the individual’s expected household income to such a percentage of the poverty line (or such other amount) as is prescribed by the Secretary of Health and Human Services for purposes of such period, and (II) not in connection with the occurrence of an event or change in circumstances specified by the Secretary of Health and Human Services for such purposes.”
26 U.S.C. 36B(c)(3)(A)(iii), added by Pub. L. 119-21 § 71304(a)
“Pub. L. 119-21, title VII, § 71304(b), July 4, 2025, 139 Stat. 324, provided that: “The amendments made by this section [amending this section] shall apply with respect to plan years beginning after December 31, 2025.””
26 U.S.C. 36B, effective date notes
Taxable years beginning after December 31, 2026 (2027 coverage and later)
Lawfully present immigrants who are not “eligible aliens” are not counted for the credit from these years. The amendment, then the definition it adds:
“Subsec. (e)(1). Pub. L. 119-21, § 71301(a), inserted “or, in the case of aliens who are lawfully present, are not eligible aliens” after “individuals who are not lawfully present” in introductory provisions.”
26 U.S.C. 36B, amendment notes
“An individual who is an alien and lawfully present shall be treated as an eligible alien if such individual is, and is reasonably expected to be for the entire period of enrollment for which the credit under this section is being claimed— (i) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), (ii) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96–422); or (iii) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G)).”
26 U.S.C. 36B(e)(2)(B), as amended by Pub. L. 119-21 § 71301(b)
“The amendments made by this section [amending this section and section 5000A of this title] (other than the amendments made by subsection (c) [amending sections 18081 and 18082 of Title 42, The Public Health and Welfare]) shall apply to taxable years beginning after December 31, 2026.”
26 U.S.C. 36B, effective date notes
Taxable years beginning after December 31, 2027 (not 2027)
“Pub. L. 119-21, title VII, § 71303(c), July 4, 2025, 139 Stat. 324, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2027.””
26 U.S.C. 36B, effective date notes
The pre-enrollment verification rules in section 71303 are for taxable years beginning after December 31, 2027, so they do not apply to 2027 coverage. This calculator does not test immigration status or enrollment period; the rules above can make a household ineligible even if the income test is met.
What this calculator leaves out
Ages and plan rating. The benchmark premium you enter already reflects the ages of your household; the calculator does not rate premiums.
Tobacco.The IRS says:
“Higher premiums for smokers are not counted in determining the amount of the second lowest cost silver plan that applies to your family. Therefore, if the monthly premium for the applicable second lowest cost silver plan is $1,200 for smokers and $900 for non-smokers, the $900 non-smoker premium is the second lowest cost silver plan premium used to compute your credit. However, the amount of your enrollment premiums, which might limit the amount of your Premium Tax Credit, are the amount you are actually being charged. For example, if your monthly enrollment premiums are $650 because you are a tobacco user but would be $500 if you did not use tobacco, the monthly enrollment premiums you use in computing your Premium Tax Credit are $650.”
IRS, Questions and answers on the Premium Tax Credit, Q26
Cost-sharing reductions. These lower deductibles and copayments on silver plans for some households and are not part of the credit amount.
Employer coverage and family members. The credit is not available for a month when affordable employer coverage that provides minimum value is offered to you, and the IRS has separate rules for coverage offered to family members. The affordability test uses a required contribution percentage that the IRS also sets each year:
“For plan years beginning in calendar year 2026, the Required Contribution Percentage for purposes of § 36B(c)(2)(C)(i)(II) and § 1.36B-2(c)(3)(v)(C) is 9.96%.”
Rev. Proc. 2025-25, section 3.02
“For plan years beginning in calendar year 2027, the Required Contribution Percentage for purposes of § 36B(c)(2)(C)(i)(II) and § 1.36B-2(c)(3)(v)(C) is 10.22%.”
Rev. Proc. 2026-26, section 3.02
“This percentage is used to determine whether an individual is eligible for affordable employer-sponsored minimum essential coverage under § 36B.”
Rev. Proc. 2026-26, section 1The IRS explains the test in its questions and answers. The calculator does not apply it.
Part-year coverage and changes during the year. The annual credit shown is twelve times the monthly credit. Changes in income, household or coverage change the credit month by month.
Immigration status, other coverage and filing status. Married couples filing separately, dependents, people eligible for Medicare or Medicaid and the Public Law 119-21 rules above are not tested.
How this estimate is built
Modelling assumptions
These choices are ours, not IRS statements. They are why the result is an estimate:
Your income is the expected modified adjusted gross income of your whole tax family for the coverage year, to the cent, and the poverty guideline is the one for your household size and location group in the guideline year of the coverage year.
The applicable percentage is interpolated on the exact income-to-guideline ratio, in whole-number arithmetic, and rounded half up to one-hundredth of one percent.
The monthly contribution is your income times the applicable percentage divided by twelve, rounded to the cent. The annual contribution is income times the applicable percentage, rounded to the cent.
The monthly credit is the benchmark premium minus the monthly contribution, never below zero, and never more than the premium of the plan you pick when you enter one.
The annual credit is twelve times the monthly credit, as if the household had coverage and the same benchmark premium all year.
Income below 100% or above 400% of the guideline shows no credit; the calculator does not test the exceptions the IRS describes for income below 100%.
Frequently asked questions
Who can get the ACA premium tax credit for 2027 coverage?
In general, a household whose income for the year is at least 100% but no more than 400% of the federal poverty line for its size. For 2027 coverage that line is the 2026 poverty guideline, so for one person in the 48 states and D.C. the range is $15,960 to $63,840. The IRS lists the other requirements: you cannot file as married filing separately (with narrow exceptions), cannot be claimed as a dependent, and need at least one month enrolled in Marketplace coverage without affordable employer coverage or eligibility for a government program such as Medicaid or Medicare.
How much do I have to contribute toward the benchmark plan in 2027?
Rev. Proc. 2026-26 sets the applicable percentage for 2027 at 2.15% of household income for incomes below 133% of the poverty line, rising in a straight line within each row of its table to 10.22% at 300% to 400%. For 2026 the same table runs from 2.10% to 9.96% (Rev. Proc. 2025-25). The credit is the benchmark premium minus one twelfth of that share each month.
Are the enhanced credits with no 400% income limit still in place?
Not for 2026 or 2027 in the law as of October 31, 2026. The 2021 through 2025 rules in 26 U.S.C. 36B apply to taxable years before January 1, 2026, and the U.S. Code text current through Public Law 119-136 (October 22, 2026) has no later extension. The IRS Q&A says the 400% limit was removed for tax years 2021 through 2025, so this calculator treats household income above 400% of the poverty line as ineligible for 2026 and 2027.
Which poverty guidelines does the credit use?
The ones most recently published on the first day of open enrollment before the coverage year (26 CFR 1.36B-1(h)). Open enrollment for 2027 coverage begins on November 1, 2026 (CMS), after the 2026 guidelines were published on January 15, 2026, so 2027 coverage uses the 2026 guidelines ($15,960 for one person in the 48 states and D.C.). Coverage for 2026 used the 2025 guidelines ($15,650). The 2027 guidelines do not apply to 2027 coverage.
Where do I find the benchmark premium?
It is the monthly price, before any tax credit, of the second lowest cost silver plan for your household in your area. HealthCare.gov and state Marketplaces let you preview plans and prices before you apply: enter your household members and ages, compare the silver plans by full monthly price and take the second lowest. The exact credit is shown when you fill out a Marketplace application. After the year, Form 1095-A, Part III, column B, generally reports the applicable SLCSP premium.
Do I have to pay back the credit if my income turns out higher?
You reconcile advance payments on Form 8962. For tax years after 2025 there is no repayment cap: you must repay the full amount by which your advance credit payments exceed your Premium Tax Credit (IRS Q&A, Q31; 26 U.S.C. 36B(f)(2) as amended by Pub. L. 119-21, section 71305). If you worry about repaying, HealthCare.gov says you can use less or none of the credit toward your premium each month.
When does open enrollment for 2027 coverage start and end?
CMS says: The Open Enrollment Period to choose Healthcare.gov coverage for 2027 begins on November 1, 2026, and runs through January 15, 2027. HealthCare.gov’s dates page lists December 15 as the last day to enroll in or change plans for coverage to start January 1. States with their own Marketplace can set different dates, so check your state’s site.
What if my income is below 100% of the poverty line?
In general the credit starts at 100%, so a household below that line shows no credit here. There is an exception when you file: 26 CFR 1.36B-2(b)(6) treats you as eligible if an Exchange estimated at enrollment that your income would be at least 100% but not more than 400% of the poverty line and advance credit payments were paid (the Form 8962 instructions list the same conditions), and the credit is then figured on your actual income. Check the box in the calculator for 2026 coverage to see that case. Separately, HealthCare.gov says that in a state that has not expanded Medicaid, an income below the poverty level that does not qualify for Medicaid under the state’s rules gets neither Medicaid nor Marketplace savings, and that if your state has expanded Medicaid you may qualify for Medicaid below 138% of the poverty level. Congress removed the special rule that treated some lawfully present immigrants below 100% as eligible, for taxable years beginning after December 31, 2025.