For 2027 Marketplace coverage, premium tax credits generally stop once your household income goes above 400% of the federal poverty level. Going even slightly over the limit can mean losing the entire credit, so it helps to know where you stand before you enroll.
The 2027 Income Limits
These figures use the 2026 federal poverty guidelines, which apply to 2027 Marketplace coverage in the states we serve. Your household size generally includes you, your spouse, and anyone you claim as a tax dependent.
| Household size | Poverty level (100%) | Tax credit income limit (400%) |
|---|---|---|
| 1 | $15,960 | $63,840 |
| 2 | $21,640 | $86,560 |
| 3 | $27,320 | $109,280 |
| 4 | $33,000 | $132,000 |
| 5 | $38,680 | $154,720 |
| 6 | $44,360 | $177,440 |
How the Limit Works
If your income is between 100% and 400% of the poverty level and you meet the other requirements, your tax credit helps limit what you pay for the benchmark silver plan in your area. In 2027, that expected share tops out at 10.22% of household income.
Example: A family of four earning $132,000 would be expected to pay about $1,124 a month for the benchmark plan, with any cost above that covered by the tax credit. If the same family earns even one dollar more, it generally does not qualify for a credit and pays the full premium.
The extra cost depends on your age, location, and plan, so run the numbers for your household instead of relying on an average.
What Counts as Income
The Marketplace uses your modified adjusted gross income (MAGI), which is your adjusted gross income plus any untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest. It includes income for everyone in your tax household, not just yours.
If you are self-employed, use the income you expect to make from your business after expenses, not your total revenue. See more about coverage options for self-employed and 1099 earners.
If Your Income Is Close to the Limit
- Estimate carefully. Your tax credit is based on your estimate, then reconciled when you file. Beginning with tax year 2026, there is no cap on repaying excess advance credits.
- Update the Marketplace during the year. Report income changes as they happen, instead of waiting until tax time.
- Consider taking less in advance. You can generally choose to use only part of your credit each month and claim the rest when you file, which may reduce the chance of owing money.
- Ask a tax professional about deductions. Contributions to an HSA or a traditional IRA can lower your MAGI, depending on your situation.
Other Reasons You May Not Qualify
Income is not the only requirement. You generally cannot claim the credit if:
- You were offered affordable employer coverage that provides minimum value
- You are eligible for government coverage such as Medicare, Medicaid, or TRICARE
- You are married and file a separate tax return, with limited exceptions
If Your Income Is Over the Limit
You can still buy a Marketplace plan at full price, but it is worth comparing your other options, including ACA plans sold off the Marketplace and medically underwritten private plans. Private plans are available year-round, subject to approval, and may limit or exclude certain conditions and benefits.
Also check your deadline. See what else to check this Open Enrollment, and if you want a price range first, try our free quote estimator.
Get Help With Your Numbers
Schedule a free, no-obligation consultation today with a Licensed Agent in your state to answer your questions and provide further clarity.
This article is general information, not tax or legal advice. Figures were current as of November 1, 2026, and may change. Ask a tax professional how these rules apply to you.
Sources: HealthCare.gov poverty levels, HealthCare.gov income guidance, IRS eligibility rules, IRS Rev. Proc. 2026-26, IRS repayment rules
