Premium tax credits · 2027
The enhanced ACA subsidies ended. What does that mean for you?
The extra help that kept Marketplace premiums low from 2021 through 2025 is gone. Here’s what’s left, who’s hit hardest and what to check before you enroll for 2027.
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- Expired Dec 31, 2025
- 400% cliff is back
- No repayment cap
Check my 2027 numbers
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What changed
- Enrollment fell. Nationally, Marketplace sign-ups dropped from 21.8 million to 19.2 million in 2026, the first drop in seven years, and fell in every state except New Mexico.[1]
- Expected contributions for 2027 run from 2.15% to 10.22% of household income toward the benchmark Silver plan.[2]
- The 400% cliff. Above 400% of the poverty level there’s no credit. For 2027 coverage that line is based on 2026 guidelines: $15,960 for one person and $33,000 for four, so 400% is $63,840 and $132,000.[3]
- No repayment cap. Starting with tax year 2026, if you receive more advance credit than you qualify for, you repay the full excess.[4]
Who should look hardest at 2027
- Households near or just above 400% of poverty.
- Self-employed people with income that swings, because the repayment cap is gone. See the self-employed deduction.
- Anyone who auto-renewed in 2026 without updating income.
Rates are rising too: Michigan insurers requested an average 14.2% for 2027.[5] See 2027 Michigan costs and ACA subsidies for 2027.
Sources
- KFF, Midterm Election Update: The Affordable Care Act Marketplaces (2026). https://www.kff.org/elections/midterm-election-update-the-affordable-care-act-marketplaces/
- IRS Rev. Proc. 2026-26 (2027 applicable percentage table, 2.15% to 10.22%). https://www.irs.gov/pub/irs-drop/rp-26-26.pdf
- HHS ASPE, 2026 Poverty Guidelines (used for 2027 coverage). https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines
- 26 U.S.C. §36B and notes (Pub. L. 119-21 §71305, effective for tax years after Dec. 31, 2025), Cornell LII. https://www.law.cornell.edu/uscode/text/26/36B
- Michigan DIFS, 2027 Michigan Health Insurance Rate Change Requests, Individual Market (as filed, subject to DIFS approval), updated July 14, 2026. https://www.michigan.gov/difs/-/media/Project/Websites/difs/OIRF/EHB/PDFs/2027_Proposed_Rate_Changes.pdf
Checked October 16, 2026. 2027 Marketplace plans and final 2027 rates aren’t published yet; we’ll update this page when they are.
Frequently asked questions
Did the enhanced ACA subsidies expire?
Yes. The temporary larger premium tax credits ended December 31, 2025. The regular credit still applies for 2027.
What is the income limit for a premium tax credit in 2027?
Generally 400% of the federal poverty level, based on 2026 guidelines: $63,840 for one person or $132,000 for a family of four in the 48 contiguous states.
Do I have to pay back extra subsidy?
Starting with tax year 2026, yes, all of it. The old repayment caps no longer apply.
Will you sell my information?
No. Your information goes to Nexus Benefit Solutions only and is never sold.