---
title: ACA 2026 affordability rate increases
description: IRS increases 2026 ACA affordability rate to 9.96%. The threshold applies on a plan year basis.
---

[Bukaty Bulletins](https://insights.bukaty.com/bulletins)

# [ACA 2026 affordability rate increases](https://insights.bukaty.com/bulletins/aca-2026-affordability-rate-increases)

 Written by [Bukaty Companies](https://insights.bukaty.com/bulletins/author/bukaty-companies) | July 23, 2025

The IRS recently issued [Revenue Procedure 2025-25](https://www.irs.gov/pub/irs-drop/rp-25-25.pdf), establishing the 2026 affordability threshold at 9.96% of annual household income. This is a nearly 1% increase from the 2025 threshold of 9.02%. The rate is used to determine the affordability of employer-sponsored health coverage and eligibility for a premium tax credit (PTC) through Healthcare.gov.

| ** YEAR ** | ** AFFORDABILITY %** | **MAXIMUM PREMIUM CONTRIBUTIONS\*** | **FEDERAL POVERTY LEVEL (FPL)** |
| --- | --- | --- | --- |
| 2026 |  9.96% |  $129.89 |  $15,650 |
| 2025 |  9.02% |  $113.20 |  $15,060 |
| 2024 |  8.39% |  $101.94 |  $14,580 |

*\*Monthly maximum an employee can pay for employer-sponsored, self-only coverage using the [FPL](https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines) affordability safe harbor. Employers may also adopt the rate-of-pay or W-2 affordability safe harbors.*

The affordability rate applies on a plan-year basis. Non-calendar year plans should continue using the 9.02% rate until their 2026 plan renewal. The affordability percentage is adjusted annually based on health plan premium growth relative to income growth reported by the Centers for Medicare & Medicaid Services.

Employers who fail to provide a benefit-eligible employee with affordable coverage can incur a shared responsibility penalty under the ACA.

For more information, contact your Bukaty benefits consultant at 913.345.0440.

[View full post](https://insights.bukaty.com/bulletins/aca-2026-affordability-rate-increases)

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