Premium Tax Credits for 2027 Marketplace Plans: The Complete Guide

A premium tax credit is the federal subsidy that lowers the monthly premium on a health plan bought through the Marketplace (HealthCare.gov or your state exchange). This guide covers who qualifies for 2027 coverage, how the credit is calculated now that the enhanced pandemic-era credits have expired, how to take it, and what happens at tax time. It replaces our older set of short premium tax credit FAQs.

Who qualifies for 2027

You can get a premium tax credit for a 2027 Marketplace plan if all of the following are true:

Your household income for 2027 is between 100% and 400% of the federal poverty level. The enhanced credits that removed the 400% cap expired on December 31, 2025, so the cap is back for 2027. One dollar over the limit means no credit at all.
You are a U.S. citizen or an eligible immigrant. Starting with 2027 coverage, eligibility is limited to citizens, lawful permanent residents (green card holders), certain Cuban and Haitian entrants, and people from Compact of Free Association countries. Other lawfully present immigrants can still buy a Marketplace plan but pay full price.
You are not eligible for Medicaid, CHIP, Medicare or military coverage.
You do not have an offer of affordable employer coverage. For 2027, an employer plan counts as affordable if the employee's share of the lowest-cost self-only premium is 10.22% of household income or less (9.96% in 2026). If the employer plan is unaffordable or does not meet minimum value, you can turn it down and take the credit.
You file a federal tax return for the coverage year, and married couples file jointly (with limited exceptions for domestic abuse or abandonment).

2027 coverage uses the 2026 federal poverty guidelines. In the 48 contiguous states and D.C.:

Household size	100% of poverty (minimum)	400% of poverty (maximum)
1	$15,960	$63,840
2	$21,640	$86,560
3	$27,320	$109,280
4	$33,000	$132,000
Each additional person	add $5,680	add $22,720

Alaska and Hawaii use higher guidelines. In states that expanded Medicaid, people under 138% of poverty are generally sent to Medicaid instead of getting a credit.

How the amount is calculated

The Marketplace looks up the second-lowest-cost Silver plan in your area, called the benchmark plan. The law sets a percentage of your income that you are expected to pay toward that benchmark plan. Your credit is the benchmark premium minus your expected contribution. You can then apply that dollar amount to any metal-level plan you choose.

These are the 2027 expected contribution percentages from IRS Revenue Procedure 2026-26:

Household income (% of poverty)	Share of income you pay toward the benchmark plan
100% up to 133%	2.15%
133% up to 150%	3.23% to 4.30%
150% up to 200%	4.30% to 6.78%
200% up to 250%	6.78% to 8.66%
250% up to 300%	8.66% to 10.22%
300% up to 400%	10.22%
Over 400%	No credit

Example: a single 50-year-old earning $40,000 is at about 251% of poverty, so their expected contribution is roughly 8.7% of income, or about $290 a month. If the benchmark Silver plan in their county costs $750 a month, the credit is about $460 a month. They could put that $460 toward a Bronze plan and pay very little, or toward the Silver plan and pay about $290.

Congress has debated restoring the enhanced credits. The House passed a three-year extension in January 2026, but the Senate has not acted as of October 2026. If that changes, the Marketplace will recalculate credits automatically and we will update this page.

Which plans the credit can be used on

Any Bronze, Silver, Gold or Platinum plan sold through the Marketplace.
Not Catastrophic plans, and not stand-alone dental plans.
Not plans bought directly from an insurer or through an agent outside the Marketplace, even if it is the same plan. Off-exchange plans never qualify.
Cost-sharing reductions, the extra help with deductibles and copays for incomes up to 250% of poverty, are only available on Silver plans.

If spouses want different plans because their doctors are in different networks, that is allowed. The Marketplace splits the monthly credit between the two plans, normally in proportion to each plan's premium.

Take it monthly, at tax time, or a mix

You choose how to receive the credit:

In advance. One twelfth of the annual credit is paid to your insurer each month and your bill is reduced right away. This is the advance premium tax credit (APTC) and it is what most people use.
At tax time. Pay the full premium yourself and claim the whole credit as a refund on your return.
Some of each. Take part of the credit in advance and leave a cushion to claim at tax time. This is a good choice if your income is hard to predict, because it reduces the chance of owing money back.

Whatever you choose, report income and household changes to the Marketplace during the year. A raise, a new job, a marriage or a child all change the credit, and updating mid-year avoids a large repayment in April.

How to apply

Apply during Open Enrollment, which runs November 1, 2026 to January 15, 2027 on HealthCare.gov and most state exchanges (New Jersey runs to January 31). Enroll by December 15 for coverage starting January 1. Outside Open Enrollment you need a qualifying life event.

The application asks for each household member's Social Security number, citizenship or immigration status, employer and income information, and your most recent tax return. The Marketplace checks your income estimate against IRS and wage data in real time. If it cannot verify your figure, for example because you are a young adult who has never filed a return or you are newly self-employed, you get a provisional approval and usually 90 days to send proof such as pay stubs, a job offer letter or bank deposits. The credit stays in place while you do.

A licensed agent can complete the application with you at no cost, and our agents work in the Marketplace directly so you keep the full credit.

At tax time: Form 8962 and repayment

You must file. Anyone who received an advance credit must file a federal return for that year with Form 8962, even if their income is below the normal filing threshold.
Reconciliation. Form 8962 compares the credit you received to the credit you actually qualified for based on final income. If you got too little, the difference is added to your refund. If you got too much, you owe the difference.
No more repayment caps. Starting with 2026 tax returns filed in 2027, the old income-based caps on repayment are gone. If your final income is higher than you estimated, you repay the full excess credit. If your income ends up over 400% of poverty, you repay every dollar of advance credit. This makes accurate estimates and mid-year updates more important than they used to be.
Failure to reconcile. If you skip the return or leave out Form 8962, the Marketplace can cut off advance credits at the next Open Enrollment. You can still buy a plan, but you pay full price until the missing return is filed. Fix it as soon as you can.

For what happens when you underestimate, see If I underestimate my income to get a subsidy, what will happen?

State subsidies on top of the federal credit

California, New Jersey, Massachusetts, Vermont, and a few other state-based exchanges add their own subsidies with their own income rules. If you live in one of those states, your exchange applies them automatically when you apply.

Quick answers

Can I get the credit on a plan bought outside the Marketplace? No.
Can I use it on a Catastrophic plan? No. Bronze through Platinum only.
Do I have to file taxes if I take the credit? Yes, every year you receive it.
Can my spouse and I pick different plans? Yes. The credit is split between them.
I have never filed a return. Can I still apply? Yes. Expect to send proof of income within 90 days.
What if I earn more than I estimated? You repay the excess credit when you file, with no cap starting with 2026 returns.

Talk to a licensed iHealthAgents advisor

Want to know exactly what your credit will be before Open Enrollment? Call 855-847-7020 or start a quote at ihealthagents.com. We enroll through the Marketplace at no extra cost, so you keep every dollar of the credit.

Sources: IRS Revenue Procedure 2026-26 (2027 applicable percentages and 10.22% affordability threshold); HHS 2026 poverty guidelines; Public Law 119-21 (repeal of excess APTC repayment caps and 2027 immigrant eligibility changes); HealthCare.gov dates and deadlines. Last reviewed October 2026. For educational use only. Confirm your own figures on your Marketplace application or with a tax professional.

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