The premium tax credit lowers what you pay each month for a Marketplace plan. It has an income limit: 400% of the federal poverty line. People call that limit the subsidy cliff. If your income is just under it, you can get help. If it's just over, you get nothing.
This guide shows the 400% amounts for 2027 coverage and how much of your income you may be asked to pay. It also covers what Congress has and hasn't done, and your options if you're over the limit.
Where the law stands
As of October 4, 2026, under current law, the tax credit is generally for incomes from 100% to 400% of the poverty line. Bigger credits that helped some people above 400% ended after 2025. A bill to bring them back for 2026 through 2028 (H.R. 1834) passed the House on January 8, 2026. As of October 4, 2026, it has not passed the Senate and is not law. Its latest action, on February 10, 2026, placed it on the Senate calendar.
From 2021 through 2025, people above 400% could get a credit. The IRS says that rule was temporary. Under current law, it doesn't apply to 2026 or 2027.
Congress could still act. If it does, the numbers in this post could change, so check the latest rules before you enroll.
The 400% amounts for 2027 coverage
For 2027 coverage, the IRS uses the poverty guidelines in effect when open enrollment starts. That means the 2026 guidelines from HHS. Here is 400% of those guidelines for Florida and the other 47 contiguous states and D.C.
Household size means the people on your tax return, like you, your spouse, and the children you claim. Household income is your modified adjusted gross income plus that of others in your household who must file. A tax pro can tell you what counts.
How much of your income you may pay
Below the limit, the credit is set so that you pay a set share of your income for a benchmark plan. That plan is the second-lowest-cost Silver plan where you live. The credit pays the rest of its price. The IRS set these shares for 2027 in Rev. Proc. 2026-26.
| Household income (share of poverty line) | You pay this share of income for the benchmark plan |
|---|---|
| Under 133% | 2.15% |
| 133% to under 150% | 3.23% to 4.3% |
| 150% to under 200% | 4.3% to 6.78% |
| 200% to under 250% | 6.78% to 8.66% |
| 250% to under 300% | 8.66% to 10.22% |
| 300% to 400% | 10.22% |
Hypothetical example, using only the formula: a married couple has household income of $86,560, exactly 400% for two people. For 2027, their share is 10.22% of income, or about $8,846 a year (about $737 a month), for the benchmark plan. If that plan costs more, the credit covers the difference. If their household income is $86,561, they get no credit.
The credit can't be more than the price of the plan you pick. If you pick a plan that costs less than the benchmark, you may pay less. If you pick one that costs more, you pay the extra.
Why your income estimate matters more now
When you apply, the Marketplace uses your income estimate to send part of your credit to your insurance company each month. At tax time, you settle up on Form 8962.
For tax years after 2025, there is no cap on paying back extra credit. If your 2027 income ends up over 400%, you may have to pay back every dollar of credit you got that year. A raise, a bonus, or a big one-time gain could push you over. A tax pro can help you plan for this.
If your income is close to the line, estimate it with care, and update your application if it changes. Our guide on how to estimate your income for Marketplace insurance walks through it.
If you're over the limit
You can still buy a Marketplace plan. You just pay the full price. Marketplace plans must cover health problems you already had, and they can't charge you more for them.
Some people over the limit look at a private PPO plan sold outside HealthCare.gov. It is not a Marketplace plan, it can't get a tax credit, and it may not follow all of the ACA's rules. Some private plans ask health questions, and approval is not guaranteed. Some may not cover care for health problems you had before you enrolled. See our page on nationwide private PPO health insurance.
Compare total costs, not just premiums. For a rough first look, try our Policy Pricing Calculator. Then check exact plans and prices during open enrollment.
Dates to know
As of October 4, 2026, under current law, open enrollment for 2027 coverage runs November 1, 2026, to January 15, 2027. A court case about these dates is still on appeal, so check HealthCare.gov. Pick a plan by December 15 for coverage that starts January 1. See every date in our Florida open enrollment guide.