How ACA Premium Percentages Changed for 2027
The IRS issued Rev. Proc. 2026-26 updating the applicable percentage table for 2027 premium tax credits. The required contribution ranges from 2.15% to 10.22% of household income depending on your FPL tier -- up slightly from the 2026 range of 2.10% to 9.96%.
What changed for 2027
Each year, the IRS issues a Revenue Procedure adjusting the applicable percentage table used to calculate premium tax credits under IRC 36B. For plan year 2027, that document is Rev. Proc. 2026-26. The percentages determine how much of a benchmark plan premium you are expected to pay yourself before the subsidy kicks in.
The 2027 update moves every tier slightly upward compared to 2026. The flat bottom tier (100-133% FPL) rose from 2.10% to 2.15%. The top tier (300-400% FPL) rose from a flat 9.96% to a flat 10.22%.
These are the post-ARPA applicable percentages. The enhanced subsidies introduced by the American Rescue Plan Act and extended through the Inflation Reduction Act expired at the end of 2025. The OBBBA did not extend them. The 400% FPL cliff also remains in place: if your household income exceeds 400% of the federal poverty level, your premium tax credit is $0.
Full 2027 percentage table
The table below shows the complete 2027 applicable percentage schedule from Rev. Proc. 2026-26, Table 1. Within each FPL range, the IRS interpolates linearly between the initial and final percentages based on your exact FPL percentage.
| Household Income (% of FPL) | Initial Percentage | Final Percentage |
|---|---|---|
| 100% up to 133% | 2.15% | 2.15% |
| 133% up to 150% | 3.23% | 4.30% |
| 150% up to 200% | 4.30% | 6.78% |
| 200% up to 250% | 6.78% | 8.66% |
| 250% up to 300% | 8.66% | 10.22% |
| 300% up to 400% | 10.22% | 10.22% |
Source: Rev. Proc. 2026-26, Table 1. The FPL percentages are calculated using the 2026 HHS Poverty Guidelines (published January 15, 2026), which apply to 2027 coverage under the prior-year rule of 26 U.S.C. 36B(d)(3)(A).
2026 vs. 2027 side-by-side
The following table compares the 2026 percentages (Rev. Proc. 2025-25) with the 2027 percentages (Rev. Proc. 2026-26) for each FPL bracket.
| Income Range (% FPL) | 2026 Initial | 2026 Final | 2027 Initial | 2027 Final |
|---|---|---|---|---|
| 100% to 133% | 2.10% | 2.10% | 2.15% | 2.15% |
| 133% to 150% | 3.14% | 4.19% | 3.23% | 4.30% |
| 150% to 200% | 4.19% | 6.60% | 4.30% | 6.78% |
| 200% to 250% | 6.60% | 8.44% | 6.78% | 8.66% |
| 250% to 300% | 8.44% | 9.96% | 8.66% | 10.22% |
| 300% to 400% | 9.96% | 9.96% | 10.22% | 10.22% |
What the increases mean in dollars
To see the real-world effect, consider a single person at exactly 200% of the 2026 federal poverty level. At 200% FPL, income is 31,920 (2 x $15,960, the 2026 one-person FPL).
Under the 2026 rules (Rev. Proc. 2025-25), the applicable percentage at exactly 200% FPL is 6.60%, requiring an annual contribution of approximately $2,107.
Under the 2027 rules (Rev. Proc. 2026-26), the applicable percentage at exactly 200% FPL is 6.78%, requiring an annual contribution of approximately $2,164.
The difference is $57 per year, or about $5 per month. That amount reduces the premium tax credit dollar-for-dollar. If the benchmark Silver plan in that person's area costs, for example, $600 per month, the subsidy falls by roughly $5 per month compared to 2026.
At 300% FPL, income is 47,880 and the required contribution is10.22% (flat from 300-400% FPL), producing an annual required contribution of $4,893.
The affordability percentage for employers
The same 10.22% figure from Rev. Proc. 2026-26 also sets the employer affordability standard for plan years beginning in 2027. Under IRC 36B(c)(2)(C)(i)(II), an employer-sponsored plan is considered affordable if your required contribution for self-only coverage does not exceed 10.22% of your household income.
If your employer's plan clears that affordability threshold, you are not eligible for a marketplace premium tax credit even if you would otherwise qualify based on income. See ACA Subsidy vs Employer Insurance: The Affordability Test for a full explanation of how this determination works.
Why percentages increased
The applicable percentage table is adjusted each year to reflect changes in the cost of employer-sponsored health coverage relative to income growth. When health insurance premiums rise faster than incomes, the IRS typically increases the applicable percentages to reflect that households are expected to contribute a slightly larger share.
The more significant change for 2026 and 2027 was the expiration of the ARPA/IRA enhanced subsidies. Under those rules, applicable percentages were effectively capped at zero for incomes below 150% FPL and sharply reduced above that. With those enhancements gone, the percentages reverted to the statutory schedule -- which for 2027 means contributions starting at 2.15% even at the lowest FPL tier.
The OBBBA (enacted 2025) made substantial changes to many tax provisions but did not restore the ACA enhanced subsidies. Marketplace enrollees receiving coverage in 2027 are subject to the full applicable percentage table in Rev. Proc. 2026-26.