TaxWrenWhat changed
- Every band of the 2027 applicable percentage table is higher than in 2026, so people who buy marketplace coverage are expected to pay a larger share of their income before the premium tax credit covers the rest. The top rate goes from 9.96% to 10.22%.
- Employer coverage counts as affordable in 2027 if your share of the cost of self-only coverage is no more than 10.22% of household income: $6,132 a year on $60,000. If it is, and it meets the minimum value standard, you generally can't get the credit for your own marketplace coverage.
- The IRS published the figures in Rev. Proc. 2026-26 on July 27, 2026. They apply to coverage in 2027 and to the credit you reconcile on your 2027 return.
People who buy health insurance on the marketplace will be expected to pay a slightly larger share of their income for a benchmark plan in 2027, before the premium tax credit picks up the rest. The IRS raised every band of the applicable percentage table in Rev. Proc. 2026-26, published in the Internal Revenue Bulletin on July 27, 2026; the top rate goes from 9.96% to 10.22% of household income. The same document moves the employer affordability test from 9.96% to 10.22%. Both apply to coverage in 2027.
The 2027 table next to 2026
Your band depends on household income as a percentage of the federal poverty line. Within a band, the share rises from the first figure to the second as income rises.
| Household income, % of poverty line | 2026 | 2027 |
|---|---|---|
| Less than 133% | 2.1% | 2.15% |
| 133% to under 150% | 3.14% to 4.19% | 3.23% to 4.3% |
| 150% to under 200% | 4.19% to 6.6% | 4.3% to 6.78% |
| 200% to under 250% | 6.6% to 8.44% | 6.78% to 8.66% |
| 250% to under 300% | 8.44% to 9.96% | 8.66% to 10.22% |
| 300% to 400% | 9.96% | 10.22% |
Share of household income expected toward the benchmark plan. 2027: Rev. Proc. 2026-26. 2026: Rev. Proc. 2025-25.
The credit for a month is the benchmark premium minus your expected contribution, capped at what your plan actually costs. If your household income is $60,000 and falls in the top band, your expected contribution for the year is $6,132 in 2027, against $5,976 at the 2026 rate. With the same income and the same benchmark premium, the credit is smaller by the difference, $156.
When employer coverage rules out the credit
If an employer offers you coverage that meets the minimum value standard and is affordable, you generally can't take the credit for your own marketplace plan. It is affordable in 2027 if your share of the cost of self-only coverage is no more than 10.22% of household income. For family members, the test uses your share of the cost of covering them as well.
| Household income | 2026 (9.96%) | 2027 (10.22%) |
|---|---|---|
| $40,000 | $3,984 a year | $4,088 a year |
| $60,000 | $5,976 a year | $6,132 a year |
| $90,000 | $8,964 a year | $9,198 a year |
Above these amounts, the employer's self-only coverage is generally unaffordable and the credit can be available.
An employee whose share of the self-only cost falls between 9.96% and 10.22% of household income could qualify for the credit under the 2026 test but generally not under the 2027 one.
Sources
- IRS: Internal Revenue Bulletin 2026-31, Rev. Proc. 2026-26 (official)
- IRS: Rev. Proc. 2025-25: applicable percentage table for 2026 (official)
- IRS: Instructions for Form 8962, Premium Tax Credit (official)
Figures come from the official documents listed above. See our methodology and editorial policy. This article is general information, not tax advice.
Frequently asked questions
What is the ACA affordability percentage for 2027?
10.22% of household income, up from 9.96% in 2026. If your share of the cost of your employer's self-only coverage is no more than that, the coverage is generally affordable for you, and you can't claim the premium tax credit for your own marketplace plan. For family members the test uses the cost of covering them too.
What is the maximum share of income for a benchmark plan in 2027?
10.22%, for household income from 300% to 400% of the federal poverty line. Below that the share is lower, from 2.15% for income under 133% of the poverty line.
Do these percentages change my marketplace premium?
They change how much of the benchmark plan (the second lowest cost silver plan where you live) you are expected to pay yourself. The credit covers the difference between that amount and the benchmark premium, so with the same income and the same premium, a higher percentage means a smaller credit.
Run your own numbers
- Income tax calculator
Federal and state income tax owed for 2026.
- Do I need to file taxes?
Whether you must file a federal tax return, from the IRS income thresholds by filing status and age, the rules for dependents, self-employment and other situations, and when to file anyway to get a refund.