CliffSafe

Updated for 2027 open enrollment · Nov 1, 2026 – Jan 15, 2027

ACA Subsidy Cliff Calculator 2027

See your premium tax credit, how close you are to the 400% poverty-line cliff, and exactly how much to move into a 401(k), HSA or IRA to keep thousands of dollars in subsidies.

Your household (2027 coverage)

Using a national-average estimate of $2,719/mo for these ages. Your area may be much higher or lower. Get your exact benchmark on HealthCare.gov.

Estimated 2027 premium tax credit

$0/mo

$0 per year · your income is 416% of the poverty line

Benchmark premium
$2,719/mo
You're expected to pay
Full price
400% FPL cliff
$86,560

You're $3,440 over the cliff.

Bring your MAGI down to $86,560 and you'd qualify for about $23,785/year in subsidies.

  • • Traditional (pre-tax) 401(k)/403(b): up to $32,500 per worker
  • • HSA (requires an HSA-eligible plan): up to $10,000
  • • Traditional IRA: up to $8,600 per person, if deductible
  • • Self-employed: a SEP-IRA or solo 401(k) can shelter much more
How to lower your MAGI →

Annual subsidy by income

$0$12,000$24,000$22,000$43,000$65,000$87,000$108,000400% FPL cliffYou
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Why the cliff is back

From 2021 through 2025, enhanced premium tax credits capped benchmark premiums at 8.5% of income for everyone, so there was no cliff. Those enhancements expired on December 31, 2025. For 2026 and 2027, anyone with household income above 400% of the federal poverty line gets nothing. A 60-year-old couple can lose $15,000 or more a year by earning one extra dollar.

Three changes that make it worse

How the calculation works

  1. Divide your household MAGI by the 2026 poverty guideline for your household size to get your FPL percentage.
  2. Look up your applicable percentage (2.15% to 10.22%) and multiply it by your income. That is your expected yearly contribution.
  3. Your subsidy is the benchmark silver premium minus your expected contribution. Above 400% FPL, it is zero.

See the full 2027 poverty line and 400% FPL chart or our guide to lowering your MAGI.

Frequently asked questions

›What is the ACA subsidy cliff in 2027?

If your household MAGI is even $1 above 400% of the federal poverty line, you get no premium tax credit at all. For 2027 coverage that line is $63,840 for one person and $132,000 for a family of four in the 48 contiguous states. The enhanced subsidies that removed the cliff expired at the end of 2025 and Congress has not renewed them.

›What percentage of income will I pay for a benchmark plan in 2027?

Between 2.15% and 10.22% of household income, depending on where you fall relative to the poverty line (IRS Rev. Proc. 2026-26). Between 300% and 400% FPL you pay 10.22%. Above 400% FPL you pay full price.

›Which poverty guidelines are used for 2027 subsidies?

Marketplace subsidies for 2027 use the 2026 HHS poverty guidelines: $15,960 for one person plus $5,680 for each additional person in the 48 states and DC. Alaska and Hawaii have higher guidelines.

›What happens if my income ends up higher than I estimated?

You reconcile on Form 8962 when you file taxes. Starting with tax year 2026, the old repayment caps are gone, so you must repay the full excess advance credit, which can mean thousands of dollars if you cross the cliff.

›How can I get under the 400% FPL cliff?

Lower your MAGI with pre-tax 401(k) or 403(b) contributions, HSA contributions, deductible traditional IRA contributions, or SEP-IRA and solo 401(k) contributions if you are self-employed. Also be careful with Roth conversions, capital gains and IRA withdrawals.

›Is this calculator accurate for my zip code?

The subsidy formula is exact, but by default we estimate your benchmark premium from national averages. For a precise number, enter the second-lowest-cost silver premium for your zip code from HealthCare.gov or your state marketplace.