ACA Subsidy 2027: Do You Qualify? Income Limits, the Returning Cliff & Open Enrollment Dates

Open enrollment for 2027 ACA coverage opens November 1, 2026 — and the subsidy rules are the toughest they’ve been in years. The enhanced premium tax credits that ran from 2021 through 2025 expired on December 31, 2025, and Congress has not restored them. That means the old 400%-of-poverty income cliff is back: earn one dollar over the line and your entire subsidy drops to zero.

This guide answers the questions shoppers are asking right now: the 2027 income limits by household size, how the subsidy is calculated, what the returning cliff costs you, and the enrollment deadlines that matter. Run your own numbers with the free ACA subsidy calculator for 2027, which uses the verified 2027 IRS figures.

When is ACA open enrollment for 2027?

On HealthCare.gov, open enrollment for 2027 coverage runs November 1, 2026 through January 15, 2027. Enroll by December 15, 2026 and your coverage starts January 1, 2027; enroll December 16 through January 15 and coverage starts February 1, 2027. Several state-run exchanges set their own end dates (California, New York, New Jersey and D.C. close January 31; Massachusetts January 23; Virginia January 29), so check your state’s marketplace if you don’t use HealthCare.gov.

Do I qualify for an ACA subsidy in 2027?

You qualify for a premium tax credit in 2027 if your household’s modified adjusted gross income (MAGI) falls between 100% and 400% of the federal poverty level, you file taxes, and you aren’t offered affordable employer coverage. Using the 2026 poverty guidelines (which set 2027 coverage), the 400% ceiling is $63,840 for a single person, $86,560 for a household of two, $109,280 for three, and $132,000 for a family of four. Below 100% FPL you generally don’t qualify unless your state expanded Medicaid. Confirm your eligibility with the ACA subsidy calculator for 2027.

What is the ACA subsidy cliff, and why is it back in 2027?

The subsidy cliff is the hard income cutoff at 400% of the federal poverty level: one dollar above it and your premium tax credit falls to $0 — not gradually, entirely. From 2021 through 2025, the enhanced credits (American Rescue Plan + Inflation Reduction Act) removed this cliff by capping everyone’s benchmark premium at 8.5% of income. Those enhancements expired December 31, 2025, so for 2026 and 2027 the original ACA structure — and the cliff — is back. A 60-year-old couple near the line can lose $15,000 or more a year in credits from a single extra dollar of income.

How is my 2027 ACA subsidy calculated?

Your credit equals the benchmark premium (the second-cheapest silver plan in your area) minus your expected contribution, which is your income multiplied by an IRS percentage based on where your income falls on the poverty scale. For 2027 (IRS Rev. Proc. 2026-26), the percentages run from 2.15% of income below 133% FPL up to a flat 10.22% for incomes between 300% and 400% FPL. Above 400% FPL there is no credit at all. The ACA subsidy calculator runs this exact table for you.

How much will ACA premiums cost in 2027?

Expect another jump. KFF’s analysis of insurers’ 2027 filings found a median proposed premium increase of 15% nationwide — the second straight year of double-digit hikes. Since the enhanced credits expired, average monthly payments by marketplace enrollees already rose from $113 to $178 (up 58%), and more than a million people dropped coverage during 2026 open enrollment. The 2027 out-of-pocket maximum is also rising to $12,000 for an individual and $24,000 for a family, up from $10,600/$21,200 in 2026.

What happens if my income ends up over 400% of poverty?

When you file your taxes, IRS Form 8962 reconciles the advance credits you received against what your actual income entitled you to. If your real MAGI lands above 400% FPL, you must repay the full amount of advance credits — there is no repayment cap above the cliff (the cap that once protected lower incomes was removed for tax year 2026 onward). This makes your income estimate at enrollment the most financially consequential number on the application: estimate carefully, and update your marketplace application promptly if your income changes mid-year.

Worked example: single filer, $50,000 income vs. the cliff

• 2026 poverty guideline (single): $15,960 → $50,000 = 313% of FPL (inside the 300–400% band)
• Expected contribution: 10.22% × $50,000 = $5,110/year = $425.83/month
• Illustrative benchmark silver premium (40-year-old): $760/month
• Monthly credit: $760 − $425.83 = $334.17/month (~$4,010/year)

Now the cliff: at $63,000 (395% FPL) the same person keeps a credit of roughly $223/month. At $63,841 — one dollar over the $63,840 cliff — the credit is $0. About $841 of extra income wipes out roughly $2,681 a year in subsidies. Check where you land with the ACA subsidy calculator for 2027.

Frequently Asked Questions

What counts as income for ACA subsidy eligibility?

The marketplace uses modified adjusted gross income (MAGI): your adjusted gross income plus non-taxable Social Security benefits, tax-exempt interest, and excluded foreign income. Wages, self-employment income, unemployment, pensions, and — importantly — Roth IRA conversions all count. Qualified Roth withdrawals generally don’t. Estimate your full-year 2027 MAGI, not just your salary.

Can I update my income estimate after I enroll?

Yes — and you should. Log in to HealthCare.gov or your state exchange and report income changes as they happen; your advance credits adjust going forward. Updating promptly is far cheaper than discovering a multi-thousand-dollar repayment on Form 8962 next April, especially now that there’s no repayment cap above the cliff.

Do old ACA subsidy calculators still work for 2027?

Most don’t. Any calculator built for 2021–2025 likely still uses the enhanced rules — the 8.5% cap and no income cliff — and will give wrong answers for 2027, sometimes overstating your credit by thousands. Use a calculator built on the 2027 IRS figures: the original percentage table (IRS Rev. Proc. 2026-26) and the restored 400% cliff, like the ACA subsidy calculator for 2027.

What else changed for ACA coverage in 2027?

Four more changes worth knowing: there is no longer a cap on repaying excess advance credits for tax years after 2025; fewer lawfully present immigrants qualify for tax credits starting January 1, 2027; bronze and catastrophic marketplace plans can now pair with a Health Savings Account (HSA); and states must begin Medicaid work requirements by January 1, 2027. None of these change the core subsidy math, but they affect plan choice.

Could Congress restore the enhanced subsidies before 2027?

It’s possible but not law. A House bill to extend the enhanced credits for three years passed in January 2026, but the Senate has not passed it, and nothing had been enacted as of October 2026. Plan and budget using the current rules — the 400% cliff — and treat any extension as a bonus, not a plan.

When is the deadline for January 1, 2027 coverage?

December 15, 2026 on HealthCare.gov. Miss it and the earliest your coverage can start is February 1, 2027 (for enrollments through January 15). State exchanges have their own calendars — confirm yours directly rather than assuming the federal dates apply.

Estimates only — not insurance or tax advice. Subsidy rules can change; verify with HealthCare.gov or a licensed agent before enrolling.