Am I over the 2027 ACA subsidy cliff?

The premium tax credit is for household income from 100% to 400% of the federal poverty line. For 2027 coverage the poverty line is the 2026 HHS guideline, because the rule uses the guideline in effect on the first day of Open Enrollment (Nov 1, 2026; 26 CFR 1.36B-1(h)).

1. Poverty line for your household size and state (Alaska and Hawaii have their own, higher tables). Above 8 people, add $5,680 per person ($7,100 in Alaska, $6,530 in Hawaii).
2. The cliff is 4 × that line. The law says “not more than 400 percent”, so exactly 400% still qualifies and $1 more does not.
3. Your % is your expected MAGI × 100 ÷ the poverty line. Form 8962 drops the decimals, and enters 401 for anything above 400%.
4. Your share of income for the benchmark (second-lowest-cost silver) plan comes from the table below, on a straight line inside each band, rounded to the nearest 0.01% (26 CFR 1.36B-3(g)(1)). The credit pays the rest of the benchmark premium.

Example: one person in Ohio expecting $60,000 is at 375.9% of $15,960, so the most they pay for the benchmark plan is 10.22% of income, $6,132 a year or $511 a month, with $3,840 of room before the cliff. At $65,680 they are $1,840 over, and the credit is $0.

For employer coverage, a 2027 offer counts as affordable if your share of the self-only premium is at most 10.22% of household income (Rev. Proc. 2026-26 §3.02); if it is, you can’t get the credit.

Medicaid and the coverage gap

The ACA expands Medicaid for most low-income adults to 138% of the poverty line. If you’re eligible for Medicaid you can’t get the premium tax credit, and Medicaid uses current monthly income. These states have not expanded Medicaid (KFF, October 2026): Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, Wyoming. There, income below 100% often gets neither: the “coverage gap”.

Exception (IRS Instructions for Form 8962): if you estimated at least 100% when you enrolled and got advance credit, you can still claim it even if your actual income ends up below 100%.

If your real 2027 income ends up over 400%

You repay all of the advance credit when you file. Line 28 of Form 8962: “If your entry on Form 8962, line 5, is 400 or more, there is no repayment limitation.”

Alaska, Hawaii and moves

Alaska and Hawaii have higher poverty lines. If spouses live in different states, or you move during the year, 26 CFR 1.36B-1(h) uses the higher guideline that applies; this page uses one state. Puerto Rico and the other territories are not supported: HHS poverty guidelines are not defined for them.

What changed from 2025

For 2021–2025 the enhanced credits capped the benchmark share at 8.5% of income with no upper income limit. They expired at the end of 2025 and, as of Oct 22, 2026, have not been extended: a three-year extension passed the House in January 2026 but not the Senate. If Congress extends them, the cliff disappears and this page will be updated.

What this page leaves out

Premiums and credits in dollars (they depend on your benchmark plan’s price; see HealthCare.gov window shopping (opens in a new tab)), immigration-status rules, and employer-coverage offers. Other eligibility rules apply: see HealthCare.gov.

State-run Marketplaces for 2027

21 states and DC run their own exchange (Covered California, Connect for Health Colorado, Access Health CT, DC Health Link, Georgia Access, Your Health Idaho, Get Covered Illinois, kynect, CoverME.gov, Maryland Health Connection, Massachusetts Health Connector, MNsure, Nevada Health Link, Get Covered New Jersey, beWellnm, NY State of Health, Oregon Health Insurance Marketplace, Pennie, HealthSource RI, Vermont Health Connect, Virginia's Insurance Marketplace, Washington Healthplanfinder); Oregon is new for 2027. Arkansas and Oklahoma use HealthCare.gov. State exchanges can set different deadlines; Idaho’s is Dec 15, 2026.

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