2027 ACA Subsidy Percentages
The 2027 applicable percentage table — the share of household income you are expected to contribute toward the benchmark silver plan at each band of the federal poverty line. Your premium tax credit is the benchmark premium minus that contribution.
2027 vs 2026 applicable percentage table
| Household income as % of federal poverty line | 2026 initial | 2026 final | 2027 initial | 2027 final |
|---|---|---|---|---|
| Less than 133% | 2.10% | 2.10% | 2.15% | 2.15% |
| At least 133% but less than 150% | 3.14% | 4.19% | 3.23% | 4.30% |
| At least 150% but less than 200% | 4.19% | 6.60% | 4.30% | 6.78% |
| At least 200% but less than 250% | 6.60% | 8.44% | 6.78% | 8.66% |
| At least 250% but less than 300% | 8.44% | 9.96% | 8.66% | 10.22% |
| At least 300% but not more than 400% | 9.96% | 9.96% | 10.22% | 10.22% |
Within each band the percentage ramps linearly from the initial value at the lower edge to the final value at the upper edge. At exactly 200% of FPL in 2027 you contribute 6.78% of household income; at 249% you are close to 8.66%. Every band rose from 2026 to 2027 — the floor from 2.10% to 2.15%, the ceiling from 9.96% to 10.22%, the first time the schedule has topped 10%.
What the increase costs in dollars
The premium tax credit is benchmark silver premium − (applicable percentage × household income). A higher applicable percentage does not change the premium; it shifts more of it onto you, dollar for dollar.
| Household income | 2026 at 9.96% | 2027 at 10.22% | Change per year |
|---|---|---|---|
| $60,000 | $5,976 | $6,132 | +$156 |
| $70,000 | $6,972 | $7,154 | +$182 |
| $80,000 | $7,968 | $8,176 | +$208 |
| $90,000 | $8,964 | $9,198 | +$234 |
| $100,000 | $9,960 | $10,220 | +$260 |
Each figure is household income multiplied by the applicable percentage for that year, holding income constant. It isolates the table change; your actual credit also moves with the benchmark premium in your rating area and with the poverty guidelines.
What this means for an early-retirement bridge
If you are bridging from your last paycheck to Medicare on marketplace coverage, your managed MAGI is doing two jobs at once: keeping the premium tax credit large, and leaving room for Roth conversions before RMDs start. The 2027 table tightens the first job slightly at every income level, and the top band now crosses into double digits — above 300% of FPL you contribute 10.22% of household income before any credit applies.
The bigger structural point has not moved: the table published for 2027 stops at 400% of the federal poverty line, exactly as it did for 2026. The enhanced schedule that removed that ceiling expired after 2025. For a bridge plan, one dollar of MAGI over 400% of FPL still forfeits the entire year's credit — which is why conversion sizing near that line is worth modelling year by year rather than by rule of thumb.
Next decision: What does this cost you at your income? — run the free ACA subsidy calculator →
Trading subsidy against conversion room — find the MAGI that keeps both →
Or see the bridge years inside a full retirement plan — run the free tax-aware simulation →
Sizing conversions across every bridge year at once — subsidy, brackets and the IRMAA years that follow — is what the Roth Conversion Planner ($99, includes the ACA Bridge Planner) → is built for.
The 2027 employer-coverage affordability percentage
Rev. Proc. 2026-26 also sets the required contribution percentage under §36B(c)(2)(C)(i)(II) at 10.22% for plan years beginning in 2027, up from 9.96% for 2026. If your share of employer-sponsored self-only coverage costs more than 10.22% of household income, that coverage is not treated as affordable, and you may claim a premium tax credit on the marketplace instead. For someone phasing into retirement while still on an employer plan, that threshold decides which door is open.
The revenue procedure also records a change in how the indexing is computed: from the 2026 benefit year onward, the premium growth measure includes individual-market premiums alongside employer-sponsored premiums, following the HHS Marketplace Integrity and Affordability rule (90 Fed. Reg. 27074, June 25, 2025). That methodology change is why the percentages moved more than ordinary wage-versus-premium drift would suggest.
Common questions
- Are the 2027 ACA subsidy percentages official?
- Yes. The IRS published the 2027 applicable percentage table in Rev. Proc. 2026-26, which provides the indexing adjustments under §36B(b)(3)(A)(i) for taxable years beginning in calendar year 2027. Every percentage on this page is taken from that document.
- What is the applicable percentage table?
- It is the share of your household income you are expected to pay toward the benchmark second-lowest-cost silver plan. Your premium tax credit is the benchmark premium minus that expected contribution, so a higher applicable percentage means a smaller credit.
- How much did the percentages rise from 2026 to 2027?
- Every band went up. The floor moved from 2.10% to 2.15% and the ceiling from 9.96% to 10.22%. On $80,000 of household income in the top band, that is $8,176 of expected contribution in 2027 against $7,968 in 2026 — about $208 more per year before any change in the underlying premium.
- What is the 2027 ACA affordability percentage for employer coverage?
- 10.22% for plan years beginning in 2027, up from 9.96% in 2026. Employer coverage costing more than that share of household income is not affordable, which is what opens the door to a marketplace premium tax credit.
- Is there still a subsidy cliff above 400% of the poverty line in 2027?
- The 2027 table published by the IRS runs only up to 400% of the federal poverty line, the same structure as 2026. The enhanced schedule that removed the cap expired after 2025, so a bridge plan that lands one dollar over 400% of FPL loses the entire credit for the year.
- What dollar income do these FPL bands correspond to in 2027?
- That depends on the federal poverty guidelines HHS issues in January 2027, which are not published yet. The percentages here are final; the dollar income boundaries they map to are not, so treat any 2027 dollar cut-off as an estimate until the guidelines are released.