What the ACA premium tax credit is
The premium tax credit is a federal tax credit that lowers the monthly price of a health plan bought through the Health Insurance Marketplace, either HealthCare.gov or your state's own marketplace. The law sets a share of your income that you are expected to pay for a benchmark plan, and the credit covers the rest. You can take it in advance each month, paid straight to the insurer (the advance premium tax credit, or APTC), or claim it when you file your tax return. This calculator estimates the credit for 2027 coverage.
How the estimate works
- Step 1. Your expected household income (MAGI) is divided by the federal poverty guideline for your household size and place of residence. The result is your income as a percent of the poverty guideline.
- Step 2. That percent is looked up in the IRS table for 2027. Inside each band the percentage rises in a straight line, so it is not one flat number.
- Step 3. The percentage times your income is what you are expected to pay for the year. Divided by 12, it is your expected monthly contribution.
- Step 4. The credit is the benchmark premium minus that monthly contribution, and never less than $0.
The benchmark is the second-lowest-cost Silver plan available to your household where you live. CentDaily has no plan or price data and does not rank or recommend plans or insurers, so you copy the full monthly price from the official marketplace. Window shopping on HealthCare.gov shows prices without an account.
For example, a single person in the 48 states and DC has a 2026 poverty guideline of $15,960. At an income of $31,920, exactly 200% of the guideline, the applicable percentage is 6.78%. That is about $2,164 a year, or $180 a month. With a $600 benchmark plan, the estimated credit is about $420 a month.
Which numbers apply to 2027
The percentages come from IRS Revenue Procedure 2026-26 (released July 21, 2026). They run from 2.15% of income at the lowest incomes to 10.22% from 300% up to 400% of the guideline. The credit uses the poverty guidelines in effect when Open Enrollment begins, so 2027 coverage uses the 2026 HHS poverty guidelines. Alaska and Hawaii have higher guidelines than the other states.
The 400% income cliff
The enhanced credits that removed the 400% limit were temporary and ended after tax year 2025. As of October 13, 2026 we found no law extending them. For 2027 coverage, a household with income above 400% of the poverty guideline gets no premium tax credit. The drop is sudden: one dollar over the limit can remove the whole credit. The calculator shows the limit for your household and the credit you would get right at it.
If your income is low
The credit generally starts at 100% of the poverty guideline. In states that expanded Medicaid, adults with income up to about 138% of the guideline usually qualify for Medicaid instead, and people eligible for Medicaid cannot also get the credit. Rules differ by state, so check with your state Medicaid agency or HealthCare.gov. Since 2026, lawfully present immigrants below 100% who cannot get Medicaid because of their immigration status no longer qualify for the credit. From 2027 only certain lawfully present statuses can get Marketplace savings. CentDaily does not check immigration status, so see HealthCare.gov for the current list.
Repayment at tax time
If you take the credit in advance and your real income ends up higher than you estimated, you must repay the difference when you file. For tax years after 2025 there is no cap on that repayment, so the full excess is added to your tax, and if you pass 400% all of the advance credit is repaid. You file Form 8962 with your return either way. Update your Marketplace application when your income or household changes.
Open Enrollment dates for 2027
On HealthCare.gov, Open Enrollment for 2027 runs November 1, 2026 to January 15, 2027. Enroll or change plans by December 15 for coverage starting January 1. If you enroll from December 16 to January 15, coverage starts February 1. State marketplaces may use different dates.
Open Enrollment checklist, step by step
- Read your two letters. If you have a Marketplace plan now, by November 1 you should get one letter from your insurance company and one from the Marketplace. They say whether your plan is still offered, which plan you would be re-enrolled in, and any changes to your coverage or savings (HealthCare.gov).
- Update your expected 2027 income and household. Savings are based on what you expect to earn in 2027, not on past years. If you leave old information, you may get less help than you qualify for, or get too much and have to pay it back at tax time. The calculator above estimates your credit.
- Compare plans, not just premiums. Plans and prices change every year. Look at the deductible, the out-of-pocket maximum, the doctors and hospitals in the network and the drugs each plan covers.
- Choose by December 15 for coverage that starts January 1. If you do nothing by then, you may be re-enrolled automatically, but your savings may be wrong until you update your application, and in some cases you are not re-enrolled at all.
- Pay your first premium. Coverage starts only after you pay.
- Get free help if you need it. Trained assisters can help you apply at no cost, in person or through the Marketplace Call Center at 1-800-318-2596 (HealthCare.gov). Agents and brokers can also help; they are generally paid by insurance companies.
- January 15 is the last day to enroll or change plans for 2027 on HealthCare.gov; coverage then starts February 1. After that you need a Special Enrollment Period, for example after a move, a birth or losing other coverage.
Frequently asked questions
Is there still a tax credit above 400% of the poverty level in 2027?
No. The temporary rules that removed the 400% limit ended after tax year 2025, and the IRS table for 2027 stops at 400%. We found no law extending the old rules as of October 13, 2026.
What is the benchmark plan and where do I find its price?
It is the second-lowest-cost Silver plan sold through the Marketplace in your area for the people on your application. Use window shopping on HealthCare.gov or your state's marketplace, look at the full monthly Silver prices before any credit, and take the second-lowest. Prices differ by ZIP code and by the ages of the people covered.
What happens if my income changes during the year?
Tell the Marketplace so your advance credit can be updated. When you file, Form 8962 compares the credit you received with the credit you qualify for on your actual income. For tax years after 2025 any excess advance credit must be repaid in full.
This page gives a general estimate, not insurance, tax or legal advice, and it does not recommend or rank any plan or insurer. Your final credit is figured on IRS Form 8962 and may differ. Figures reflect the law as of October 13, 2026 and come from the official sources listed below. See also the Medicare costs page, the HSA calculator, the income tax calculator, the self-employment tax calculator and the paycheck calculator.