ACA Enhanced Tax Credits in 2027: Did Congress Extend Them?
No. As of October 30, 2026, the enhanced ACA premium tax credits have not been extended. They ended December 31, 2025, and 2027 coverage uses the original rules: help stops above 400% of the poverty level, and the IRS 2027 percentages run from 2.15% to 10.22% of income.
Key takeaways
- No extension is law. The enhanced premium tax credits ended on December 31, 2025. A three-year extension, H.R. 1834, passed the House on January 8, 2026, and has waited on the Senate calendar since February 10, 2026 (Congress.gov, checked October 30, 2026).
- For 2027 coverage the 400% income line applies: $63,840 for one person and $132,000 for a family of four, from the 2026 HHS poverty guidelines.
- The IRS set the 2027 expected contribution at 2.15% to 10.22% of household income, up from 2.10% to 9.96% in 2026. Under the enhanced rules it was 0% to 8.5%.
- Starting with 2026 tax returns, there is no cap on paying back extra advance credit. An income estimate that runs low can cost you the full difference at tax time.
- Open enrollment for 2027 runs November 1, 2026 to January 15, 2027. Choose by December 15 for coverage that starts January 1.
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The short answer is no. Congress has not extended the enhanced ACA premium tax credits, so the help you see for 2027 coverage is figured under the original Affordable Care Act rules. We checked the bill record on Congress.gov on October 30, 2026, two days before open enrollment opens.
A premium tax credit is the discount that lowers your monthly premium on a Marketplace plan. From 2021 through 2025, Congress made that discount larger and removed the income limit. Those extra rules are what people call the enhanced credits, and they lapsed when 2025 ended.
This guide covers who this affects: early retirees, self-employed people, small business owners and families who buy their own coverage. It shows where the bill stands, the 2027 income lines, what you are expected to pay at different incomes, and the other 2027 changes that catch people off guard.
Did Congress extend the enhanced ACA tax credits for 2027?
No. The enhanced credits expired on December 31, 2025, and no law has brought them back. The House passed H.R. 1834, a three-year extension, by 230 to 196 on January 8, 2026. The Senate placed it on its calendar on February 10, 2026, and as of October 30, 2026, Congress.gov, H.R. 1834 all actions lists no later step: no Senate vote and no public law.
| Date | What happened |
|---|---|
| March 11, 2021 | The American Rescue Plan Act (Public Law 117-2) enlarges the credits and removes the 400% income limit for 2021 and 2022. |
| August 16, 2022 | The Inflation Reduction Act (Public Law 117-169) extends the enhanced credits through 2025. |
| December 31, 2025 | The enhanced credits expire. The original rules return for 2026 coverage. |
| January 8, 2026 | The House passes H.R. 1834, a three-year extension, 230 to 196 (roll call 11). |
| February 10, 2026 | H.R. 1834 is placed on the Senate Legislative Calendar, Calendar No. 319. |
| October 30, 2026 | No further action recorded. 2027 coverage uses the original rules. |
Some states stepped in with their own money for 2026. A KFF review published January 9, 2026 found that New Mexico replaced the lost credits for all enrollees, while Maryland and California replaced them only at lower incomes. State help for 2027 varies by state, and we check yours.
What share of income will I pay for a benchmark plan in 2027?
In 2027 you are expected to pay between 2.15% and 10.22% of your household income toward the benchmark plan, depending on where your income falls against the poverty level. Those figures come from section 3.01 of IRS Rev. Proc. 2026-26, the IRS table for tax years beginning in 2027. The benchmark is the second-lowest cost Silver plan where you live. Your credit is the difference between that plan's price and your expected share.
| Income as % of poverty level | 2021 to 2025 (enhanced) | 2026 | 2027 |
|---|---|---|---|
| Under 133% | 0% | 2.10% | 2.15% |
| 133% to 150% | 0% | 3.14% to 4.19% | 3.23% to 4.30% |
| 150% to 200% | 0% to 2% | 4.19% to 6.60% | 4.30% to 6.78% |
| 200% to 250% | 2% to 4% | 6.60% to 8.44% | 6.78% to 8.66% |
| 250% to 300% | 4% to 6% | 8.44% to 9.96% | 8.66% to 10.22% |
| 300% to 400% | 6% to 8.5% | 9.96% | 10.22% |
| Over 400% | 8.5% | No credit | No credit |
Source: 26 U.S.C. 36B(b)(3)(A)(iii), added by section 9661 of the American Rescue Plan Act (2021 to 2025 table); IRS Rev. Proc. 2025-25, section 3.01 (2026 table); IRS Rev. Proc. 2026-26, section 3.01 (2027 table).
Two things moved at once. The percentages rose a little from 2026, and the line at 400% of the poverty level stayed in place. Below that line you still get help, though usually less than through 2025. Above it, the credit is zero, which is why people call it the subsidy cliff.
Where is the 400% income line for 2027 coverage?
For 2027 coverage, 400% of the poverty level is $63,840 for one person, $86,560 for two and $132,000 for a family of four. The IRS uses the poverty guidelines published before open enrollment starts, so 2027 coverage uses the 2026 guidelines (IRS premium tax credit questions and answers, Q7).
| Household size | 100% of poverty level | 138% (Medicaid line in expansion states) | 400% (top of the credit range) |
|---|---|---|---|
| 1 | $15,960 | $22,025 | $63,840 |
| 2 | $21,640 | $29,863 | $86,560 |
| 3 | $27,320 | $37,702 | $109,280 |
| 4 | $33,000 | $45,540 | $132,000 |
| 5 | $38,680 | $53,378 | $154,720 |
| 6 | $44,360 | $61,217 | $177,440 |
Household means the people on your federal tax return. Income means modified adjusted gross income, or MAGI: the adjusted gross income on your return plus a few items added back, such as tax-exempt interest and the untaxed part of Social Security. Our MAGI income estimator walks through it line by line.
What does that mean in dollars at my income?
Here is the most one person would be expected to pay toward the benchmark Silver plan in 2027, next to the same income under the enhanced rules. A single person earning $50,000 is at 313% of the poverty level and is expected to pay 10.22% of income, or $426 a month. Under the enhanced rules that was 6.33%, or $264 a month.
| Yearly income (MAGI) | % of poverty level | 2027 rules | Enhanced rules (2021 to 2025) |
|---|---|---|---|
| $25,000 | 156.6% | 4.63% · $1,157 a year ($96 a month) | 0.27% · $66 a year ($6 a month) |
| $40,000 | 250.6% | 8.68% · $3,472 a year ($289 a month) | 4.03% · $1,610 a year ($134 a month) |
| $50,000 | 313.3% | 10.22% · $5,110 a year ($426 a month) | 6.33% · $3,166 a year ($264 a month) |
| $63,000 | 394.7% | 10.22% · $6,439 a year ($537 a month) | 8.37% · $5,272 a year ($439 a month) |
| $65,000 | 407.3% | No credit (over 400%) | 8.50% · $5,525 a year ($460 a month) |
The jump between $63,000 and $65,000 is the cliff. At $63,000 a single person still gets help if the benchmark plan costs more than $537 a month. At $65,000 they pay the full price, whatever it is. For a family of four earning $120,000, or 364% of the poverty level, the 2027 expected share is 10.22%, $1,022 a month, against 7.59% under the enhanced rules.
Your real credit depends on the benchmark price in your ZIP code and the ages on your application, since older adults pay higher premiums. Our ACA subsidy calculator gives a first estimate. HealthCare.gov or your state marketplace sets the exact figure, and we confirm it with you before you choose a plan.
What else changes for 2027 Marketplace coverage?
Two changes from the 2025 budget law, Public Law 119-21, matter as much as the expired credits. One affects your tax return, the other affects some lawfully present immigrants.
- No repayment cap. Through 2025, if your income came in higher than you estimated, the amount of extra advance credit you paid back was capped for incomes under 400%. For tax years after 2025 there is no cap: you repay the full difference (IRS Q&A, Q31). That applies to the 2026 return you file in 2027 and to 2027 coverage.
- Fewer noncitizens qualify for help. Starting with plan year 2027, credits and cost-sharing reductions are allowed only for U.S. citizens, U.S. nationals, lawful permanent residents, Cuban and Haitian entrants and Compact of Free Association migrants. Other lawfully present people can still enroll but pay full price (CMS guidance, October 5, 2026).
- Job-based coverage test. For 2027, an employer plan counts as affordable, which blocks a Marketplace credit, if your share of self-only coverage is no more than 10.22% of household income (IRS Rev. Proc. 2026-26, section 3.02). Our family coverage calculator checks the family side.
What if my income is below the credit range?
Below 100% of the poverty level there is generally no Marketplace credit. In states that expanded Medicaid, adults up to 138% usually qualify for Medicaid instead. Rules vary by state, and we check yours. In Arizona, for example, the program is AHCCCS, and the Marketplace application screens for it and passes your details to the state.
Between 100% and 250% of the poverty level, look hard at Silver plans. Cost-sharing reductions lower deductibles and copays, and they come only with Silver plans at those incomes. A Bronze plan can cost less each month and more over the year once you use care.
What should I do before December 15?
Open enrollment for 2027 coverage runs from November 1, 2026 to January 15, 2027. Enroll or change plans by December 15, 2026 for coverage that starts January 1 (HealthCare.gov dates and deadlines, checked October 30, 2026).
- Estimate 2027 income. Start from your latest return and adjust for raises, retirement, a new business or a spouse changing jobs.
- Find your place against the lines. Use the table above or our poverty level calculator.
- List your doctors and prescriptions. Networks and drug lists change every year.
- Do not let it auto-renew blind. A renewal keeps you covered but uses old income and may move you to a plan with a different network.
- Compare yearly cost, not just the premium. Add premiums and the care you expect to use.
- Book a review before December 15 if you want the new plan on January 1. Bring your spouse or whoever helps with the household budget.
The bottom line
Congress has not extended the enhanced ACA tax credits, so 2027 coverage runs on the original rules: help stops at 400% of the poverty level, expected shares run from 2.15% to 10.22% of income, and extra advance credit is repaid in full. Estimate your income with care, check your plan before it renews, and choose by December 15 for a January 1 start.
Frequently asked questions
Did Congress extend the enhanced ACA subsidies for 2027?
No. As of October 30, 2026, no extension has become law. H.R. 1834 passed the House on January 8, 2026 and has been on the Senate calendar since February 10, 2026 with no vote. We track it and can show you what your 2027 plan costs under the rules in force now.
What is the income limit for ACA tax credits in 2027?
Generally 400% of the 2026 poverty guidelines: $63,840 for one person, $86,560 for two, $109,280 for three and $132,000 for four in the 48 states and DC. Above that, the credit is zero. We can check where your household lands and what that means for your plan choices.
How much of my income will I pay for a benchmark plan in 2027?
Between 2.15% and 10.22% of household income, set by IRS Rev. Proc. 2026-26. Under 133% of the poverty level it is 2.15%; from 300% to 400% it is 10.22%. We turn that percentage into a monthly dollar figure for your household when we review your options.
Will I owe money back at tax time?
You might, and there is no longer a cap. For tax years after 2025, if your advance credit was larger than the credit you qualify for, you repay the whole difference. We help you set a careful income estimate and update it when your income changes.
Can Congress still change the credits for 2027?
Congress can pass a law at any time, and the Marketplace would recalculate credits if it did. Nothing has passed as of October 30, 2026, so plan with today's rules. We update this page when the bill record changes and contact our clients if their numbers move.
When is open enrollment for 2027 coverage?
November 1, 2026 to January 15, 2027. Choose a plan by December 15, 2026 for coverage that starts January 1. We book renewal reviews through December so you can decide before the January 1 deadline.
I earn just over 400% of the poverty level. What are my options?
Look at whether pre-tax retirement or HSA contributions would bring your MAGI under the line, and ask your tax professional first. Also compare off-Marketplace plans and Bronze or HSA-eligible plans on total yearly cost. We lay those options side by side for you.
Does my employer coverage stop me from getting a credit?
It does if the employer plan counts as affordable and meets minimum value. For 2027, affordable means your share of self-only coverage is no more than 10.22% of household income. We can run that test with your employer's numbers.
Sources
- Congress.gov: H.R. 1834, all actions (119th Congress) Library of Congress
- IRS Rev. Proc. 2026-26: 2027 applicable percentage table and required contribution percentage Internal Revenue Service
- IRS Rev. Proc. 2025-25: 2026 applicable percentage table Internal Revenue Service
- American Rescue Plan Act of 2021, section 9661 (Public Law 117-2) Library of Congress
- HHS 2026 Poverty Guidelines U.S. Department of Health and Human Services, ASPE
- IRS: Questions and answers on the premium tax credit Internal Revenue Service
- CMS: Guidance on noncitizen eligibility for APTC and CSRs for plan year 2027 Centers for Medicare & Medicaid Services
- KFF: State-based efforts will provide limited relief from enhanced tax credit expiration (January 9, 2026) KFF
- HealthCare.gov: Dates and deadlines HealthCare.gov
Please note: Rise Up Benefits Group is not affiliated with, endorsed by, or operating on behalf of HealthCare.gov, the Health Insurance Marketplace, or any federal or state government agency. Plan availability, premiums and advance premium tax credits are set by the carriers and the Marketplace.Estimates only. Figures on this page use published plan-year values and the details you enter. They are not a quote, an offer of coverage, or a determination of eligibility. Your final premium and any tax credit are confirmed at enrollment with the carrier or HealthCare.gov. This article is general information, not medical, tax or legal advice.
