2027 Obamacare subsidy calculator

What income should I enter in the subsidy calculator?

The ACA has its own version of modified adjusted gross income (MAGI). Learn more about how MAGI is calculated under the ACA. Some points to keep in mind:

• For most enrollees, ACA-specific MAGI is the same as the AGI that will show up on Line 11a of their federal tax return. But you’ll be entering your projected income for the coming year (or for the full current year, if you’re enrolling after the first of the year).
• Contributions to an HSA or pre-tax retirement account will reduce your AGI, and do not have to be added back when ACA-specific MAGI is calculated. So any income you contribute to those accounts will not be counted when your Marketplace subsidy eligibility is determined.
  

What happens if my income changes mid-year?

Since you’re projecting your income ahead of time, it might not end up being exactly accurate. This is why premium subsidies are reconciled on your tax return after the year is over and your exact MAGI is known. If your subsidy was too small, the IRS will give you the difference (added to your refund or subtracted from the tax you owe), and if your subsidy was too big, you’ll have to repay the extra subsidy amount to the IRS.

Knowing that, it’s wise to update your income in your Marketplace account if you realize mid-year that you’re on track to earn significantly more or less than you initially projected.

• If your income is going to be lower than you projected (but still subsidy-eligible), reporting the change will mean that your monthly subsidy amount increases at that point and your net premium will decrease. That prevents you from having to wait until you file your tax return to recoup that money.
• On the other hand, reporting an increase in income will mean that your monthly subsidy amount decreases for the remainder of the year, and your net premium increases. But that will prevent you from having to repay all of the excess subsidy amount when you file your tax return. And it’s also possible that waiting to reconcile the excess subsidy on your tax return could also trigger an underpayment penalty from the IRS, depending on how much has to be repaid and how much you paid in income taxes throughout the year.⁴ Reporting the income change as soon as possible will help to prevent that outcome.
  

Who’s eligible for ACA premium subsidies?

Subsidy eligibility is explained in more detail in our overview of Marketplace premium subsidies.

Of the nearly 23.1 million people who selected plans through the exchanges during the open enrollment period for 2026 coverage, 20 million (87%) were receiving premium subsidies.⁵ The percentage of enrollees who received subsidies was higher during the years when the subsidy enhancements were in place. But subsidy eligibility in 2026 was similar to 2021, before the subsidy enhancements were put in place: At that point, 86% of Marketplace enrollees were receiving premium subsidies (total enrollment was less than half of the 2026 enrollment, with only 11.3 million people enrolled in early 2021).⁶

Because the subsidy enhancements expired at the end of 2025, enrollment for 2026 was lower than the year before: 23.1 million people selected plans during the open enrollment period for 2026,⁵ versus 24.3 million who had done so for 2025.⁷ The drop in enrollment was primarily due to the higher net premiums for 2026 coverage.

• Learn how pre-tax retirement account contributions and health savings account (HSA) contributions can reduce your ACA-specific modified adjusted gross income that’s used for subsidy eligibility calculations.
• And learn about how HSA access was expanded starting in 2026. (This continues to be the case in 2027 and future years).
• Learn more about what’s changing for immigrants’ eligibility for Marketplace subsidies starting in 2027.
• Learn about the ACA Marketplace in your state.
  

What are the income limits for ACA premium subsidies?

ACA premium subsidy eligibility depends largely on household income (an ACA-specific calculation of MAGI). To qualify for a subsidy, an applicant must:

• Earn at least 100% of FPL, although in most states the lower threshold for subsidy eligibility is above 138% of FPL, as Medicaid is available below that level.
• Earn no more than 400% of FPL.

The FPL is adjusted each year, so the upper limit for subsidy eligibility gets higher over time (in 2014, it was $45,960 for a single person in the Continental U.S.,⁸ whereas it is $63,840 for a single person in 2027).⁹

Subsidy eligibility is based on the prior year’s FPL, so 2027 subsidy eligibility is based on comparing 2027 household income with the 2026 FPL. The tables below illustrate the maximum household income to qualify for an ACA premium subsidy in 2026 and 2027:

How have the income limits for ACA premium subsidies changed?

Prior to 2021, Marketplace buyers were eligible for premium subsidies if their projected household income didn’t exceed 400% of the prior year’s federal poverty level. From 2021 through 2025, this income limit did not apply, due to the American Rescue Plan and the Inflation Reduction Act.

Starting in 2026, the pre-2021 rules are once again in place. This means subsidy eligibility extends from 100% of FPL to 400% of FPL (the lower threshold is an income of more than 138% of FPL in states that have expanded Medicaid).

For subsidy-eligible enrollees, the subsidy amount is based on their ACA-specific modified adjusted gross income (MAGI) and the cost of the benchmark plan – the second-lowest-cost Silver plan available in the Marketplace.¹¹

Note that the cost of the benchmark plan differs from one person to another. Each applicant’s subsidy calculation is unique, based on their household MAGI versus the benchmark plan’s premium for that particular applicant.

Learn how modified adjusted gross income is used to determine eligibility for Marketplace premiums and how ACA-specific MAGI is calculated.

On the lower end of the income spectrum, buyers are eligible for subsidies in the 40 states that have implemented the ACA’s Medicaid expansion if their income is above 138% of the federal poverty level.¹² In those states, applicants below that threshold are eligible for Medicaid, although as of 2027, expanded Medicaid has a work requirement in addition to the income limits.)

In the states that haven’t yet expanded Medicaid eligibility (Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming), buyers are eligible for premium subsidies if their income is at least equal to the federal poverty level. Because Medicaid expansion hasn’t yet been implemented in these states, eligibility for Medicaid is based on strict pre-ACA eligibility guidelines. (In nine states that have rejected Medicaid expansion, low-income residents continue to face a coverage gap.)

Since 2023, premium subsidies have been available to some people who were impacted by the family glitch in previous years. Before 2023, families were ineligible for subsidies in the Marketplace if they had access to employer-sponsored coverage that was considered affordable for just the employee – regardless of how much it cost to add the family to the employer’s plan.

The IRS finalized new regulations to fix the family glitch in October 2022, allowing some employees’ family members to become newly eligible for subsidies in the Marketplace if the cost to cover them under an employer-sponsored plan is not considered affordable. The family glitch fix affects some families more than others.

How can I calculate my health insurance subsidy?

You can use the subsidy calculator on this page to see whether you’re eligible for a subsidy and to see your subsidy estimate.

Do premium subsidy amounts change each year?

Premium subsidy amounts fluctuate from one year to another, based on changes in the cost of the benchmark plan (second-lowest-cost Silver plan¹³) in each area, as well as changes in the federal poverty level (households qualify for subsidies based on their income as a percentage of the federal poverty level).

Premium subsidies continue to be larger in most of the country than they were in 2017 and previous years, due to the way the cost of cost-sharing reductions (CSR) has been added to Silver plan premiums in most states. But the temporary increase in subsidy amounts due to the American Rescue Plan and Inflation Reduction Act expired at the end of 2025.

Premium subsidy amounts are also linked to changes in benchmark premiums from one year to the next. In general, if average benchmark premiums decrease (as they did in 2019,¹⁴ 2020,¹⁵ 2021,¹⁶ and 2022), average premium subsidy amounts will also decrease.

When benchmark premiums increase, as they did each year prior to 2019, and also for 2023, 2024,¹⁷ and 2025,¹⁸ average premium subsidy amounts will also increase.

For 2026, average benchmark premiums increased significantly,¹⁹ which generally has the effect of increasing subsidy amounts (indeed, the average subsidy grew significantly in 2026, rising to $650/month, up from $550/month in 2025).²⁰

But at the same time, the expiration of the subsidy enhancements had the effect of driving subsidy amounts lower than they would have been if the subsidy enhancements had been extended. As a result, the average enrollee saw a significant increase in after-subsidy premiums for 2026.¹⁹ Even though millions of people either downgraded to a Bronze plan or dropped their coverage altogether, average after-subsidy Marketplace premiums increased by 58% for 2026.

For 2027, the average benchmark premium is increasing by 13%,²¹ which will push average subsidy amounts higher in 2027.

In any year, it’s important to understand that averages only describe the big picture. Each enrollee’s subsidy amount will change based on their own specific circumstances, including income changes and how the benchmark premium is changing for them in particular.

Does my age affect my subsidy?

Yes. Premiums increase with age in nearly every state.²² And higher premiums will result in a larger subsidy, assuming income is equal.

Consider an example: Tom and Xavier both live in Orlando, and each of them has the same $50,000 annual income. But Tom is 25 and Xavier is 60. For 2027 coverage, here are their subsidies:

• Tom: Subsidy = $139/month
• Xavier: Subsidy = $1,100/month

The reason Xavier’s subsidy is so much larger is that his unsubsidized premium is also much larger: $1,525/month, versus just $564/month for Tom. So after their subsidies are applied, they each pay the same amount — $425/month — for the benchmark Silver plan. But Xavier’s subsidy has to be much larger to make that work.²³

Are premium subsidies available for any health plan?

Premium subsidies can be used with any metal-level plan (Bronze, Silver, Gold, or Platinum) available in the Marketplace. But they can’t be used to pay for plans purchased outside the Marketplace, even if the same plan is sold in the Marketplace. So it’s important to make sure you’re shopping on the Marketplace if you want to take advantage of any available financial assistance.

Subsidies can’t be used to pay for pediatric dental/vision plans that are sold in the Marketplace as a stand-alone plan – as opposed to being embedded in the medical plan – unless the available medical plans do not include embedded pediatric dental/vision.

Subsidies also can’t be used to pay for short-term health insurance (which is not ACA-compliant) or supplemental insurance coverage, including accident supplements, adult dental/vision plans, critical illness insurance plans, or stand-alone prescription drug insurance. Except for adult dental and vision plans, these types of coverage are not available for purchase in the Marketplace.

And although catastrophic health plans – which are ACA-compliant – are available via the Marketplace/exchange in most states, subsidies cannot be used with catastrophic plans. So catastrophic plans are generally only a good choice for an applicant who isn’t eligible for subsidies.

Are there other types of ACA subsidies?

Yes. The ACA also provides cost-sharing reductions (CSR, also known as cost-sharing subsidies), which can reduce your out-of-pocket costs – as long as you enroll in a Silver plan. About 37% of the people who enrolled in Marketplace plans during the open enrollment period for 2026 coverage selected a plan that included cost-sharing subsidies.²⁴