How do premium tax credits work?
The credit is based on your expected household income for the year and the cost of the benchmark silver plan in your area, which is the second-lowest-cost silver plan. The lower your income, the smaller the share of income you are expected to pay. You can take the credit in advance to lower your monthly premium, or claim it when you file taxes.
Because the credit uses your expected income, update your marketplace application if your income changes during the year. Large differences can lead to owing money back at tax time.
What changed for 2027?
The enhanced savings that began in 2021 ended after 2025. That means households above 400% of the federal poverty level get no premium tax credit, and people who do qualify pay a higher share of income than they did under the temporary rules. The required share for 2027 ranges from 2.15% to 10.22%, according to IRS guidance.
What other savings exist?
| Savings | Who it helps | What it does |
|---|---|---|
| Cost-sharing reductions | People who choose a silver plan and have a low enough income | Lower your deductible and copays. |
| Medicaid and the Children's Health Insurance Program | People with lower incomes. Rules vary by state. | Cover health care for people with lower incomes. |
| Choosing a different metal level, such as bronze | Anyone shopping for a plan | Can lower your premium. It usually means a higher deductible. |
How do I find out what I qualify for?
Your marketplace estimates your savings when you apply. A licensed agent can run the numbers with you, compare plans from several insurers and help you apply, at no cost to you.
See our Individual & Family plans
Major medical coverage for you and your household, with subsidies applied where you qualify.2027 health insurance subsidy calculator
Enter your state, household size and income to see your 2027 expected premium, your savings and whether Medicaid may apply.
Talk to a licensed agent
We compare plans, explain the tradeoffs and help you enroll. It costs you nothing.