Update — September 21, 2026: We re-checked this article against primary sources today. The enhanced premium tax credits remain expired and no extension has been enacted, so the 400% federal poverty level cliff still applies for 2027 (IRS Rev. Proc. 2026-26). Open enrollment still runs November 1, 2026 through January 15, 2027 on HealthCare.gov. Both points are the subject of live legislative and court activity, so confirm the current position before you act.
For 2027 coverage in Florida, the premium tax credit runs from 100 percent to 400 percent of the federal poverty line, and stops dead above it. Using the 2026 federal poverty guidelines that govern 2027 coverage, 400 percent is 63,840 dollars for one person and 132,000 dollars for a household of four. One dollar over, and the credit is zero.
Not reduced. Zero. That is why people call it a cliff, and it is back in force for 2027 after four years in which it did not apply.
What are the 2027 ACA subsidy income limits in Florida?
Florida is in the 48 contiguous states, so the standard federal poverty guidelines apply. The table below shows the income bands that matter for premium tax credit purposes in 2027.
| Household size | 100% FPL | 150% FPL | 200% FPL | 250% FPL | 300% FPL | 400% FPL (the cliff) |
|---|---|---|---|---|---|---|
| 1 | 15,960 | 23,940 | 31,920 | 39,900 | 47,880 | 63,840 |
| 2 | 21,640 | 32,460 | 43,280 | 54,100 | 64,920 | 86,560 |
| 3 | 27,320 | 40,980 | 54,640 | 68,300 | 81,960 | 109,280 |
| 4 | 33,000 | 49,500 | 66,000 | 82,500 | 99,000 | 132,000 |
| 5 | 38,680 | 58,020 | 77,360 | 96,700 | 116,040 | 154,720 |
| 6 | 44,360 | 66,540 | 88,720 | 110,900 | 133,080 | 177,440 |
| 7 | 50,040 | 75,060 | 100,080 | 125,100 | 150,120 | 200,160 |
| 8 | 55,720 | 83,580 | 111,440 | 139,300 | 167,160 | 222,880 |
All figures in US dollars of annual household income. For households larger than eight, add 5,680 dollars per additional person to the 100 percent column and scale accordingly. Base guidelines: Annual Update of the HHS Poverty Guidelines, published in the Federal Register on January 15, 2026, effective January 13, 2026.
The income measured is not your gross pay. It is modified adjusted gross income for your tax household, which includes items such as tax-exempt interest and untaxed Social Security benefits that people routinely forget.
Which year’s federal poverty guidelines apply to 2027 coverage?
This trips up more people than any other part of the calculation, so be precise about it.
The IRS rule is that eligibility uses the most recently published set of poverty guidelines as of the first day of the annual open enrollment period for that coverage year. Open enrollment for 2027 coverage opens in the autumn of 2026. The most recent guidelines at that point are the ones published in January 2026.
So 2027 coverage uses the 2026 poverty guidelines, published January 15, 2026. The 2027 guidelines, which will appear in January 2027, do not govern 2027 marketplace subsidies. They will govern 2028 coverage. Every dollar figure in this article comes from the January 2026 publication.
What is the 2027 applicable percentage table?
The applicable percentage is the share of household income you are expected to contribute toward the benchmark plan. The IRS indexes it annually. For 2027 the figures come from Rev. Proc. 2026-26, published by the IRS in July 2026 and carried in Internal Revenue Bulletin 2026-31 dated July 27, 2026.
| Household income as a percentage of the federal poverty line | Initial percentage | Final percentage |
|---|---|---|
| Less than 133% | 2.15% | 2.15% |
| At least 133% but less than 150% | 3.23% | 4.30% |
| At least 150% but less than 200% | 4.30% | 6.78% |
| At least 200% but less than 250% | 6.78% | 8.66% |
| At least 250% but less than 300% | 8.66% | 10.22% |
| At least 300% but not more than 400% | 10.22% | 10.22% |
| More than 400% | No premium tax credit is allowed | |
Reading the table: within each band, the percentage rises on a straight line from the initial to the final figure as income rises through that band. A household at the very bottom of the 200 to 250 percent band is expected to contribute 6.78 percent of income; one at the top of that band, 8.66 percent. In the 300 to 400 percent band the initial and final percentages are identical, so everyone in that band is expected to contribute 10.22 percent of income, flat.
For comparison, the top of the 2026 table was 9.96 percent (IRS Rev. Proc. 2025-25, 2025). The step up to 10.22 percent means that even a household whose income and plan are unchanged is expected to pay slightly more out of pocket in 2027, which shrinks the credit.
The credit itself is then straightforward: take the annual premium of the benchmark plan in your rating area, which is the second-lowest-cost silver plan, and subtract your expected contribution. What is left is your credit. If the subtraction produces zero or less, there is no credit.
What does the 400 percent cliff actually mean?
A word on terminology first, because it matters for anyone searching the statute. “Cliff” is the common industry and press term. It is not the IRS’s language. The Internal Revenue Code simply conditions the credit on household income falling within a range, and the IRS states plainly that income must be at least 100 percent and no more than 400 percent of the federal poverty line. There is no phase-out provision above the top of the range. The credit does not taper toward zero. It is simply unavailable.
The practical effect is a discontinuity unlike anything else in the tax code that ordinary households encounter. A marginal dollar of income can cost thousands of dollars in lost credit.
From 2021 through 2025 this did not apply. A temporary expansion suspended the 400 percent ceiling and instead capped the expected contribution at 8.5 percent of income at every level above it. That expansion ended on December 31, 2025 and was not extended, so the permanent structure returned for 2026 and continues into 2027. Our article on why 2027 Florida premiums rose so sharply covers how this interacted with rate increases.
How much does the cliff cost in dollars?
At exactly 400 percent of the poverty line, your expected annual contribution is 10.22 percent of income. Cross the line and your expected contribution becomes the entire benchmark premium, whatever it happens to be.
| Household size | Income at 400% FPL | Expected contribution per year | Expected contribution per month | One dollar above this income |
|---|---|---|---|---|
| 1 | 63,840 | 6,524 | 544 | Credit becomes zero |
| 2 | 86,560 | 8,846 | 737 | Credit becomes zero |
| 3 | 109,280 | 11,168 | 931 | Credit becomes zero |
| 4 | 132,000 | 13,490 | 1,124 | Credit becomes zero |
| 5 | 154,720 | 15,812 | 1,318 | Credit becomes zero |
| 6 | 177,440 | 18,134 | 1,511 | Credit becomes zero |
| 7 | 200,160 | 20,456 | 1,705 | Credit becomes zero |
| 8 | 222,880 | 22,778 | 1,898 | Credit becomes zero |
All figures in US dollars, rounded to the nearest dollar. Monthly figures are the annual amount divided by twelve.
To see the size of the drop, take a purely illustrative case rather than real data. Assume a couple aged 60 in a Florida county where the benchmark silver plan costs 1,600 dollars a month, or 19,200 dollars a year. At 86,560 dollars of income they are expected to contribute 8,846 dollars, so the credit is 10,354 dollars. At 86,561 dollars the credit is zero and they owe the full 19,200 dollars. One dollar of income changed their cost by more than ten thousand dollars. Change the benchmark premium and the number changes, but the shape does not.
Because premiums are age-rated, the cliff bites hardest on older households. Two 62-year-olds and two 30-year-olds at identical income face identical expected contributions but very different benchmark premiums, so the older couple loses far more. If you find yourself above the line, our guide on being over the ACA subsidy cliff in Florida sets out what options remain.
What if my income is below 100 percent of the poverty line in Florida?
This is the other edge of the range, and in Florida it is a real problem. The premium tax credit generally requires household income of at least 100 percent of the federal poverty line. Florida has not adopted the ACA Medicaid expansion, so adults below that line who do not qualify for Florida Medicaid under the state’s existing categories may fall into what is commonly called the coverage gap.
HealthCare.gov describes the situation directly: if your state has not expanded Medicaid, your income is below the poverty level, and you do not qualify under your state’s current rules, you may not qualify for either savings program. Apply anyway. Eligibility depends on household composition, immigration status and other categories, and the only way to know is to have the application run.
If your income is genuinely uncertain and might land above or below 100 percent, that is worth a conversation before you enroll rather than after.
What is the required contribution percentage for 2027, and is it the same thing?
No, and the two get confused constantly because for 2027 they happen to be the same number.
Rev. Proc. 2026-26 sets the required contribution percentage at 10.22 percent for plan years beginning in 2027, under Section 36B(c)(2)(C)(i)(II). That figure is used for a different test: whether an offer of employer-sponsored coverage counts as affordable. If your employer offers self-only coverage costing no more than 10.22 percent of your household income in 2027, the offer is treated as affordable and you are generally not eligible for a premium tax credit on a marketplace plan, regardless of where your income falls in the table above.
So an employer offer can disqualify you even if your income sits comfortably between 100 and 400 percent. Check the employer offer before assuming the income table settles the question.
Frequently asked questions
What is the 2027 income limit for ACA subsidies for a single person in Florida?
63,840 dollars, which is 400 percent of the 2026 federal poverty guideline of 15,960 dollars for a household of one in the 48 contiguous states (HHS, published January 15, 2026). Above that, no premium tax credit.
What is the 2027 subsidy income limit for a family of four in Florida?
132,000 dollars, which is 400 percent of the 2026 guideline of 33,000 dollars for a household of four (HHS, published January 15, 2026).
Why does 2027 coverage use 2026 poverty guidelines?
Because the IRS rule fixes eligibility to the most recently published guidelines as of the first day of the open enrollment period for that coverage year. Open enrollment for 2027 begins in autumn 2026, when the January 2026 guidelines are the most recent.
Is the 400 percent cliff definitely in effect for 2027?
Under the law as it stood when this article was published, yes. The temporary expansion that suspended the ceiling ended on December 31, 2025. Congress could legislate a change, and bills have been introduced, but none had been enacted as of early August 2026. Confirm current law before relying on this for a decision.
Does the cliff apply to each person or to the whole household?
To the whole tax household. Household income and household size are both measured for the tax family, which is why a child moving off your return can push you over the line without your income changing at all.
What happens if I estimate my income under 400 percent and end up over it?
You will generally have to repay the advance premium tax credits you received when you file. For households that end the year above 400 percent of the poverty line, the repayment is not capped. This is a common and expensive surprise, and we cover it in our guide to ACA subsidy repayment in Florida. Discuss your specific situation with a qualified tax professional.
Can I reduce my income to stay under the cliff?
The measure is modified adjusted gross income, so above-the-line deductions such as deductible retirement contributions, health savings account contributions and self-employed health insurance deductions can reduce it. Whether any of these are available or advisable for you depends on your full tax picture, your employment status and your contribution limits. This is a question for your tax professional, not something to decide from an article.
Is “cliff” an official term?
No. It is the common term used by the press and the industry. The Internal Revenue Code and IRS guidance simply state the eligibility range as 100 to 400 percent of the federal poverty line, with no provision phasing the credit out above the top. The effect is a cliff even though the word is not used.
If you want someone to run your numbers
If your projected income for 2027 is anywhere near the 400 percent line, it is worth knowing exactly where you stand before open enrollment rather than after. We are glad to work through the figures with you at no cost and with no obligation. Call Lifeworth Insurance Agency at (954) 834-5433.
Lifeworth Insurance Agency, NPN 21228343, is a trade name of Lifeworth Financial Group LLC, licensed in Florida for life, health and annuity products. This article is general information, not tax, legal or individualized insurance advice. Premium tax credit eligibility, modified adjusted gross income and repayment questions should be reviewed with a qualified tax professional.