Obamacare Income Limits 2027: Who Gets Subsidies & When Premiums Are $0

Dongni Chen is a licensed health insurance agent who speaks Mandarin and Cantonese, and can help you compare plans and enroll in Chinese. For 2027 coverage, household income generally needs to be between 100% and 400% of the federal poverty level to potentially qualify for a federal subsidy.

For 2027 coverage | Information compiled in October 2026. If policies change, follow the official announcements.

By Dongni Chen, licensed insurance agent, NPN 20635222 · RedNote (Xiaohongshu): 咚咚在美国 · Updated October 25, 2026

Key points

For 2027 coverage, household income generally needs to be between 100% and 400% of the federal poverty level to potentially qualify for a federal subsidy.
About $15,960–$63,840 for a single person, or $33,000–$132,000 for a family of 4.
The enhanced subsidies available in 2021–2025 have ended. Even $1 above 400% means no federal subsidy, often called the subsidy cliff.
A $0 premium means the subsidy is larger than the plan's premium, so there is no monthly payment. This is common for people with lower incomes or older people who choose Bronze plans.

1. Income chart for 2027

For 2027 coverage, the calculation uses the 2026 federal poverty guidelines for the 48 contiguous states and DC:

Household size	100%Subsidy starting point	138%Medicaid line in expansion states	150%	200%	250%Enhanced Silver (CSR) limit	300%	400%Subsidy cap
1	15,960	22,025	23,940	31,920	39,900	47,880	63,840
2	21,640	29,863	32,460	43,280	54,100	64,920	86,560
3	27,320	37,702	40,980	54,640	68,300	81,960	109,280
4	33,000	45,540	49,500	66,000	82,500	99,000	132,000
5	38,680	53,378	58,020	77,360	96,700	116,040	154,720
6	44,360	61,217	66,540	88,720	110,900	133,080	177,440
7	50,040	69,055	75,060	100,080	125,100	150,120	200,160
8	55,720	76,894	83,580	111,440	139,300	167,160	222,880

What these thresholds mean:

Below 100%: Generally no federal subsidy. In most states, adults with income below about 138% generally use Medicaid.
Below 250%: Choose a Silver plan and you can also get Cost-Sharing Reductions.
Above 400%: No federal subsidy; you pay full price.

2. What counts as income?

Your expected household income for all of 2027, January through December, rather than just what you currently earn each month.
Start with adjusted gross income (AGI) on your tax return, then add back foreign earned income excluded from tax, tax-exempt interest and nontaxable Social Security benefits.
Your household generally includes you, your spouse and your tax dependents. Even if some family members do not enroll, their income may still count.

Common income that counts: Wages, net self-employment income, unemployment benefits, severance pay, interest and dividends, net rental income, capital gains, pensions, IRA/401(k) withdrawals (except qualified Roth withdrawals) and Social Security benefits.

What does not count: Gifts, loans, child support received, SSI and veterans' disability benefits.

Contributions to traditional 401(k)s, traditional IRAs and HSAs can usually reduce your income for tax purposes. Ask your tax preparer about the actual calculation.

3. How is the subsidy calculated?

Subsidy = premium for the local second-lowest-cost Silver plan (the benchmark) − your expected contribution

Your expected contribution is based on a percentage of income. For 2027:

Income as a percentage of the poverty level	Annual contribution as a percentage of income
Under 133%	2.15%
133% – 150%	3.23% – 4.30%
150% – 200%	4.30% – 6.78%
200% – 250%	6.78% – 8.66%
250% – 300%	8.66% – 10.22%
300% – 400%	10.22%
Over 400%	No federal subsidy

Source: IRS Rev. Proc. 2026-26.

Why do older people usually get larger subsidies? The benchmark plan costs more as you get older, but your expected contribution depends only on income, not age. That makes the difference—the subsidy—larger.

4. When is the premium $0?

When the subsidy is at least as much as the premium for your chosen plan, the monthly premium is $0.

Example (numbers are for illustration only; actual amounts depend on local prices):

A single person, age 60, expects $30,000 in income for 2027, about 188% of the poverty level.

Expected contribution: about 6.18% of income, or $155 a month.
Suppose the local benchmark Silver plan costs $1,100 a month → the subsidy is about $945 a month.
Choose a Bronze plan costing $850 a month → $0 a month.
Choose the benchmark Silver plan → about $155 a month.

A single person, age 30, with the same income:

Expected contribution: the same, about $155 a month.
Suppose the local benchmark Silver plan costs $450 a month → the subsidy is about $295 a month.
Choose a Bronze plan costing $380 a month → about $85 a month.

Some states offer additional state subsidies, which may lower premiums further. Check your state's rules.

5. What should you know about $0-premium plans?

A $0 monthly premium does not mean medical care costs nothing. These are usually Bronze plans with higher deductibles. For 2027, an ACA plan's out-of-pocket maximum can be as high as $12,000 per person.
If your income is below 250% of the poverty level, compare Silver plans too. Silver offers Cost-Sharing Reductions. The monthly premium may be a little higher, but you may pay much less when you get care.
Review your options every year. Premiums and subsidies change each year. A plan that cost $0 last year may not cost $0 this year.
Report income accurately. Starting with tax year 2026, there is no repayment cap on excess subsidies. If your year-end income is higher than estimated, you must repay the full excess when filing taxes. Update your information within 30 days of an income change.

Questions? Contact Dongni Chen

If you are unsure how much you may qualify for, contact me and I can help you calculate it.

Subsidy amounts are subject to the marketplace's calculation.

Main sources: IRS Rev. Proc. 2026-26; HHS 2026 poverty guidelines; HealthCare.gov.

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