2027 subsidy cliff
The 400% income cap is back for 2027. Here are the actual numbers, with sources, and what you may be able to do about it.
Marketplace premium tax credits are generally available to households earning between 100% and 400% of the federal poverty level (FPL). From 2021 through 2025, temporary enhancements let people above 400% FPL get help too. Those enhancements expired at the end of 2025 (KFF). So the cliff came back in 2026, and it's still here for 2027: earn $1 over 400% FPL and your federal subsidy drops to zero. Healthcare math is weird like that.
For 2027 coverage, eligibility uses the 2026 poverty guidelines (HHS/ASPE; KFF). Figures below are for the 48 contiguous states and D.C.
| Household size | 100% FPL | 400% FPL: subsidy stops above |
|---|---|---|
| 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 |
Alaska and Hawaii use higher guidelines. Your exact eligibility is determined when you apply.
KFF notes that people with incomes above 400% FPL "will be particularly hard hit" in 2027 because they no longer qualify for premium tax credits and must pay the full cost of coverage (KFF). Think self-employed couples, early retirees, and small business owners who had a good year. Meanwhile, most enrollees still get a subsidy that cushions the increase. The system works great for a lot of people. Just maybe not for you.
The Marketplace uses your expected household income for the year, based on modified adjusted gross income (MAGI) (HealthCare.gov). For self-employed people that generally means net income after business expenses. If your income changes, update your application, because the difference is reconciled at tax time (HealthCare.gov).
Self-employed? Read the self-employed health insurance guide on downhamagency.com. Want the price side of the story? See 2027 rate facts.
General information only, not tax or legal advice.
About $63,840 for a single person, $86,560 for a couple, and $132,000 for a family of four (400% of the 2026 poverty guidelines, contiguous states) (KFF).
No. The enhanced premium tax credits expired at the end of 2025, and the 400% FPL limit applies for 2027 (KFF).
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