Premium tax credit estimator for 2027

Enter your household size and your best estimate of 2027 income. You'll see where you fall on the federal poverty scale, how much you're expected to pay for a benchmark silver plan, whether you get cost-sharing reductions, and how close you are to the 400% cliff.

How the 2027 credit works

The premium tax credit is designed so you pay a set percentage of your income for the benchmark plan, the second-lowest-cost silver plan where you live. The credit covers the rest. For 2027 that percentage runs from 2.15% of income at the bottom of the scale to 10.22% from 300% to 400% of the poverty level.

• Under 100% of the poverty level: no credit. In Tennessee that's the coverage gap for most adults without children.
• 100% to 250%: credit plus cost-sharing reductions if you choose a silver plan.
• 250% to 400%: credit only.
• Over 400%: no credit at all. The enhanced credits that removed this cliff expired December 31, 2025.

What to enter

Household size is everyone on your federal tax return: you, a spouse if filing jointly, and dependents you claim. Income is modified adjusted gross income (MAGI): roughly your adjusted gross income plus untaxed foreign income, non-taxable Social Security, and tax-exempt interest. For self-employed people it's net business income, not gross receipts. Self-employed guide.

The benchmark premium is optional. Find it by window-shopping on HealthCare.gov with your household's ages and ZIP code, sorting silver plans by price, and taking the second-cheapest.

Frequently asked questions

Why does the estimator use 2026 poverty guidelines for 2027 coverage? Marketplace tax credits for a coverage year use the poverty guidelines published before open enrollment for that year. For 2027 coverage, that's the 2026 HHS guidelines: $15,960 for one person plus $5,680 for each additional person.

What happens if my income ends up higher than my estimate? You repay the extra advance credit when you file your taxes. Starting with tax year 2026 there is no cap on that repayment, so estimate honestly and report raises promptly. How to estimate without getting burned.

Can I use the credit on a bronze or gold plan? Yes. The credit amount is set by the benchmark silver plan, but you can apply it to any metal level. Cost-sharing reductions, though, only come with silver plans.

Does an employer offer of coverage affect this? Yes. If you can get job-based coverage that costs you no more than 10.22% of household income for the employee-only plan in 2027 and meets minimum value, you generally can't get a marketplace credit. Employer coverage vs. the marketplace.

Sources

• IRS Revenue Procedure 2026-26 — 2027 applicable percentage table (2.15%–10.22%) and required contribution percentage
• HHS 2026 poverty guidelines — $15,960 for one person, $5,680 per additional person (48 contiguous states)
• Public Law 119-21, section 71305 — no cap on repaying excess advance credits for tax years after 2025
• HealthCare.gov — cost-sharing reductions and benchmark plan rules