ACA Subsidy Income Limits for 2027: The 400% FPL Cliff Is Back
For 2027, you qualify for ACA premium tax credits if your household MAGI is between 100% and 400% of the federal poverty level (FPL). For a single person, that means $15,960 to $63,840. The enhanced subsidies that temporarily removed the 400% cap expired after plan year 2025 and were not extended by the One Big Beautiful Budget Act (OBBBA). If your income is even one dollar above the 400% threshold, your subsidy drops to exactly zero - a sharp cliff that can cost thousands of dollars in premium assistance. Use our ACA subsidy calculator to see where you fall.
Income limits at a glance
The federal poverty level used for 2027 marketplace coverage is the 2026 HHS Poverty Guidelines (published January 2026). Federal law - 26 U.S.C. 36B(d)(3)(A) - requires using the guidelines in effect as of the first day of open enrollment, which was November 1, 2026.
To qualify for a premium tax credit, your projected household MAGI must be:
- At least 100% FPL: Below this, you are expected to qualify for Medicaid (in expansion states) or fall into the coverage gap in non-expansion states.
- No more than 400% FPL: Above this, your subsidy is $0.
2027 FPL table by household size
The table below shows the 2026 HHS Poverty Guidelines for the 48 contiguous states and DC, used for 2027 ACA coverage. Alaska and Hawaii have separate, higher guidelines not shown here.
| Household size | 100% FPL | 138% FPL (Medicaid line) | 150% FPL | 200% FPL | 300% FPL | 400% FPL (subsidy cliff) |
|---|---|---|---|---|---|---|
| 1 | $15,960 | $22,025 | $23,940 | $31,920 | $47,880 | $63,840 |
| 2 | $21,640 | $29,863 | $32,460 | $43,280 | $64,920 | $86,560 |
| 3 | $27,320 | $37,702 | $40,980 | $54,640 | $81,960 | $109,280 |
| 4 | $33,000 | $45,540 | $49,500 | $66,000 | $99,000 | $132,000 |
| 5 | $38,680 | $53,378 | $58,020 | $77,360 | $116,040 | $154,720 |
| 6 | $44,360 | $61,217 | $66,540 | $88,720 | $133,080 | $177,440 |
| 7 | $50,040 | $69,055 | $75,060 | $100,080 | $150,120 | $200,160 |
| 8 | $55,720 | $76,894 | $83,580 | $111,440 | $167,160 | $222,880 |
Source: 2026 HHS Poverty Guidelines, Federal Register (Jan. 15, 2026). Percentages rounded to nearest dollar.
For a quick check: enter your household income and size into our ACA subsidy calculator to instantly see your FPL percentage and estimated subsidy.
The 400% FPL cliff - what really happens
The 400% FPL cliff is one of the sharpest discontinuities in the federal tax code. Here is what it means in practice:
- At 399% FPL: Your applicable percentage from Rev. Proc. 2026-26 is 10.22% (the flat rate for the 300-400% bracket). You pay that percentage of your income toward premiums; the subsidy covers the rest of the benchmark plan cost.
- At 400% FPL: Technically still eligible. Your subsidy is the benchmark premium minus 10.22% of your income - which may be a very small positive number.
- At 401% FPL (one dollar over): Subsidy drops to exactly $0. You pay the full benchmark plan premium with no federal help.
The cliff creates a situation where earning a few extra dollars can cost a family thousands of dollars in lost subsidy. This is not a marginal tax rate issue - it is a full elimination of the benefit.
Cliff worked example
Consider a single person just below and just above the 400% FPL cliff for2027:
- At $63,839 (just under 400% FPL): Applicable percentage is 10.22%. Expected contribution: $6,524per year. If the benchmark Silver plan costs $700/month ($8,400/year), the subsidy is $8,400 - $6,524 = $1,876 per year.
- At $63,841 (just over 400% FPL): Subsidy = $0. The same $700/month plan now costs the full $8,400 per year out of pocket.
The one-dollar difference in income costs this person thousands of dollars in premium assistance. This is why income management near the 400% threshold is worth discussing with a tax professional or licensed insurance broker.
For an interactive view of how the cliff affects your specific income and household size, use the ACA subsidy calculator.
What changed when enhanced subsidies expired
From plan years 2021 through 2025, the American Rescue Plan Act (ARPA) and Inflation Reduction Act (IRA) temporarily eliminated the 400% FPL cliff. During those years, any household income above 400% FPL still qualified for a subsidy as long as premiums exceeded 10.22% of income. That expansion expired after plan year 2025.
For 2027:
- The 400% FPL cliff is fully restored.
- Households that previously qualified above 400% FPL are no longer eligible.
- The applicable percentage table returns to the pre-ARPA standard schedule from Rev. Proc. 2026-26.
- The OBBBA did not extend enhanced subsidies, but it did eliminate repayment caps on excess APTC for TY2026+. See the repayment rules guide for details.
If your income is near the 400% threshold, projecting your income carefully before open enrollment is critical. Report any income changes to your marketplace during the year to adjust your advance credit.