The 2027 ACA affordability threshold is 10.22% of household income, set by IRS Rev. Proc. 2026-26 for plan years beginning in calendar year 2027. It was 9.96% for plan years beginning in 2026 and 9.02% in 2025. The percentage matters because a job offer that meets the test blocks the Marketplace premium tax credit, while an offer that fails it can open the door to a subsidy.
Adults under 65 who are choosing between a job-based plan and a HealthCare.gov plan for 2027 coverage can use this page to see what the test measures, which premium it uses, and what to do when the employer plan fails it. Open enrollment for 2027 Marketplace coverage opens November 1, 2026; check HealthCare.gov for the current sign-up deadlines before you plan around a date.
Coverage Breakdown
Direct answer
It depends. For plan years beginning in 2027, an employer plan is affordable under the ACA when the employee-only premium for the lowest-cost plan that meets minimum value is 10.22% or less of household income (up from 9.96% in 2026). If it is affordable, you generally cannot get a Marketplace premium tax credit while the offer is open to you.
The ACA affordability percentage by year (2025 to 2027)
The ACA affordability percentage rises and falls with the IRS indexing formula each year, and the year that counts is the start of your employer's plan year. A plan year that begins in 2027 uses 10.22% under IRS Rev. Proc. 2026-26 section 3.02. A plan year that began in 2026, such as July 1, 2026, keeps the 2026 figure of 9.96% under IRS Rev. Proc. 2025-25 until that plan year ends. The 2025 figure was 9.02%.
What the ACA affordability test measures
The ACA affordability test compares one number to your household income: the premium you would pay for the lowest-cost self-only plan your employer offers that also meets minimum value, meaning it pays at least 60% of total allowed costs and covers substantial inpatient hospital and physician services. For 2027, that employee-only premium must be 10.22% of household income or less. Your cost for adding a spouse or children does not count toward your own test.
Household income here means modified adjusted gross income for the tax household, not the amount on one pay stub, and it includes all Social Security benefits and any income from a spouse. A plan that fails the minimum value test is treated as unaffordable no matter how low the premium is, because it does not provide the coverage the law requires from an employer. A plan can be ACA-compliant on the Marketplace and still be a poor fit for the test if it is not the employer's lowest-cost qualifying plan.
Family members and the family glitch fix for 2027
Family members are tested separately from the employee. Since the family glitch fix took effect for 2023 coverage, a spouse or child is judged on the cost of the employer's family plan, not the employee-only price, using the same 10.22% figure for plan years beginning in 2027. If family coverage costs more than 10.22% of household income, the spouse and children can qualify for the premium tax credit even when the employee's own offer is affordable.
The employee stays barred from the credit in that case, so a household can end up split between the job plan and a Marketplace plan. For the full rule and examples, see the existing CoveredUSA guides on the employer offer subsidy rule and the family glitch fix linked below.
Offer, enrollment and repayment: how an affordable offer affects a 2027 Marketplace subsidy
Eligibility for an affordable job-based plan blocks the credit even if you never enroll, so declining an affordable offer does not unlock a subsidy. If the offer is unaffordable or fails minimum value, you can decline it and take the premium tax credit, provided your household income is within the range for 2027 coverage: 100% to 400% of the 2026 poverty guidelines, or $15,960 to $63,840 for one person and $33,000 to $132,000 for a household of four.
Marketplace help also depends on immigration status: for 2027 coverage the credit is limited to citizens, green card holders, Cuban and Haitian entrants, and citizens of Micronesia, the Marshall Islands and Palau. For tax year 2026 and later there is no cap on repaying excess advance premium tax credits, so a household that takes advance credits while holding an affordable offer it overlooked can owe the full difference on Form 8962 when it files.
How to check whether your employer's 2027 offer is affordable
Employer offers are checked by comparing the employee-only premium for the lowest-cost qualifying plan with 10.22% of household income for plan years beginning in 2027. Ask your benefits office for the employee-only premium of the lowest-cost plan that meets minimum value, then compare it with your expected 2027 household income. HealthCare.gov asks for this on the application and offers an employer coverage form your employer can complete.
- Get the 2027 employee-only premium for the lowest-cost plan that meets minimum value
- Estimate your 2027 household income (modified adjusted gross income, including all Social Security)
- Compare the premium with 10.22% of that income for plan years beginning in 2027
- For a spouse or child, use the cost of family coverage instead
- Apply at HealthCare.gov and answer the employer coverage questions
Alternatives if your employer plan is affordable but you still need other coverage
An affordable offer does not leave every adult under 65 without options. Several routes work outside the premium tax credit, and each has its own rules that you can confirm on the linked .gov pages.
- Enroll in the employer plan: the offer is usually the lowest-cost route when it is affordable, and it covers essential health benefits and preexisting conditions like any ACA-compliant plan.
- Medicaid or CHIP: if household income is low enough, an employer offer does not block Medicaid. The 2026 poverty guidelines set the Medicaid line at 138% in expansion states ($22,025 for one person in 2026). Check medicaid.gov.
- Full-price Marketplace plan: you can buy a plan at HealthCare.gov without a credit; cost-sharing reductions still require the premium tax credit.
- Special enrollment: losing job-based coverage opens a 60-day window outside open enrollment (HealthCare.gov).
- Medicare at 65: people turning 65 move to Original Medicare (Medicare Part A and Part B), Medicare Advantage, Part D or Medigap, and lose Marketplace credit eligibility once enrolled in Part A.
Frequently Asked Questions
What is the ACA affordability percentage for 2027?
The 2027 ACA affordability percentage is 10.22% of household income for employer plan years beginning in 2027, set by IRS Rev. Proc. 2026-26. It was 9.96% for plan years beginning in 2026 and 9.02% in 2025. An employee-only premium at or below that share of income makes the offer affordable.
Does 10.22% apply to my job plan if the plan year starts in July 2026?
No. A plan year that began in 2026 keeps the 2026 figure of 9.96% until that plan year ends. The 10.22% figure for 2027 applies to plan years beginning on or after January 1, 2027, so a plan year starting July 1, 2027 would use 10.22%.
Which premium is compared with the 10.22% threshold in 2027?
The premium for the lowest-cost self-only plan your employer offers that meets minimum value is compared with 10.22% of your 2027 household income. Adding a spouse or children does not change your own test. Family members are tested on the cost of family coverage instead.
Can I get a Marketplace subsidy for 2027 if my employer offer is unaffordable?
Yes, if household income is within 100% to 400% of the 2026 poverty guidelines ($15,960 to $63,840 for one person for 2027 coverage) and you meet the other rules, including immigration status. You can decline the unaffordable offer and apply at HealthCare.gov for 2027 coverage.
What if I decline an affordable employer plan?
Declining does not unlock a subsidy. Eligibility for an affordable offer, not enrollment, blocks the premium tax credit. If you take advance credits anyway, you may repay them in full on Form 8962 for tax year 2026 and later, since the repayment caps no longer apply.
What is minimum value, and why does it matter?
Minimum value means the plan pays at least 60% of total allowed costs and covers substantial inpatient hospital and physician services. A plan that fails it is treated as unaffordable for subsidy purposes, so you can decline it and seek a Marketplace credit if you otherwise qualify.
Do my spouse and children get the same test?
Not exactly. Under the family glitch fix, a spouse or child is tested on the cost of family coverage against the same 10.22% figure for plan years beginning in 2027. They may qualify for a credit when family coverage is unaffordable, even if the employee's own offer is affordable.
Where can I confirm the 2027 figure?
The primary source is IRS Rev. Proc. 2026-26, section 3.02, at irs.gov. HealthCare.gov explains how job-based offers affect savings, and the IRS premium tax credit Questions and Answers page covers the rules for reconciling the credit on Form 8962.
