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For 2027 coverage, the premium tax credit stops at 400% of the poverty line, with no phase-out. Enter your state, household and expected income and see which side you land on, how far you are from the line, and what to do about it.
For 2027 coverage, you get a premium tax credit only if your household income is between 100% and 400% of the federal poverty line (138% in states that expanded Medicaid). For one person the top of that range is $63,840; for a family of four it is $132,000. Above it the credit is zero, at any income.
From 2021 through 2025, enhanced credits smoothed this out, so people above 400% still got help if a plan cost more than 8.5% of income. Those enhanced credits expired at the end of 2025 and Congress did not restore them, so the original rule is back: the credit stops completely at the line.
That is why the line matters so much to self-employed people. A household at 399% of the poverty line can receive a large credit. The same household at 401% pays full price for the identical plan. Where you land depends on modified adjusted gross income (MAGI), not on revenue, and for business owners that number is often lower than they expect.
| Household | 100% (poverty line) | 138% (Medicaid line in expansion states) | 400% (the cliff) |
|---|---|---|---|
| 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 |
| 7 | $50,040 | $69,055 | $200,160 |
| 8 | $55,720 | $76,894 | $222,880 |
These are the 2026 HHS poverty guidelines for the 48 contiguous states, which the Marketplace uses for 2027 coverage. Each person beyond eight adds $5,680 to the poverty line.
This is an estimate to help you decide what to look at next. It is not tax advice, and it is not an eligibility determination.
The credit works by capping what you pay for the benchmark plan, the second-lowest-cost silver plan at your ZIP. The cap is a percentage of your income, and it climbs as income rises. These are the IRS percentages for 2027:
| Income, % of poverty line | Most you pay for the benchmark plan |
|---|---|
| Under 133% | 2.15% of income |
| 133% to 150% | 3.23% rising to 4.30% |
| 150% to 200% | 4.30% rising to 6.78% |
| 200% to 250% | 6.78% rising to 8.66% |
| 250% to 300% | 8.66% rising to 10.22% |
| 300% to 400% | 10.22% of income |
| Over 400% | No cap. No credit. |
If the benchmark plan costs more than your cap, the credit pays the difference, and you can apply that credit to any metal level. If the benchmark plan already costs less than your cap, there is no credit even under the line, which happens more often to younger, lower-cost applicants.
For a business owner, MAGI starts with net profit after business expenses, then comes down further before the Marketplace ever sees it:
Example: an owner-operator who grosses $260,000 in settlements and nets $82,000 after fuel, maintenance, the truck payment, insurance and per diem looks like they are over the single-person line of $63,840. Half of self-employment tax takes off about $5,800. A $14,000 SEP-IRA contribution takes the estimate to roughly $62,200, under the line. The calculator above runs that same math for your numbers, without the health insurance deduction, so treat it as a conservative estimate.
None of this is tax advice. Contribution limits, earned-income rules and your own filing situation decide what you can actually deduct, so confirm with your tax preparer before you count on getting under the line.
The calculator tells you which side of the line you are on. A broker can tell you what that means in dollars: the actual Marketplace price at your ZIP with any credit applied, and, if you are healthy, what private nationwide PPO plans would cost. One call, your information never sold.
It is the point where the premium tax credit drops to zero. For 2027 coverage that is 400% of the federal poverty line: $63,840 for one person, $86,560 for two and $132,000 for a family of four in the 48 contiguous states. Below the line the credit caps what you pay for the benchmark silver plan; above it there is no credit at all.
Net. The Marketplace uses modified adjusted gross income, which for a business owner starts with net profit after expenses and then subtracts above-the-line deductions such as half of self-employment tax and deductible retirement contributions.
Often, if you are close. Deductible SEP-IRA, solo 401(k) and traditional IRA contributions lower adjusted gross income, and HSA contributions do too if you have an HSA-eligible plan. Confirm limits and timing with your tax preparer before relying on it.
You settle the credit on your tax return. Starting with tax year 2026 there is no cap on paying back excess advance credit, so if your income rises above the line you can owe back the full amount you received.
The math runs in your browser, and the dollar amounts you type are never stored or sent to us. Two things are kept: for this visit only, your browser remembers the result category, such as "just over the cliff," so that if you choose to request a quote the broker knows which comparison to run; and our site analytics count calculator use by result category, mode and state, without any dollar amounts. See our privacy policy for the analytics tools we use.
Your state decides what happens at the bottom of the range. In states that expanded Medicaid, adults under about 138% of the poverty line usually qualify for Medicaid instead of a credit. In states that did not, credits start at 100%, and adults below that can fall into a gap.
Checked October 14, 2026. Rules and dates change; confirm before you act.
One licensed broker pulls the actual plans at your ZIP, applies any credit, and prices private nationwide PPO plans if you are healthy. Your information is never sold.
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