---
title: ACA 2027 affordability threshold increases to 10.22%
description: The IRS has raised the 2027 affordability threshold to 10.22%.
image: https://insights.bukaty.com/hubfs/AdobeStock_127134413-1.jpeg
---

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![ACA 2027 affordability threshold increases to 10.22%](https://insights.bukaty.com/hs-fs/hubfs/AdobeStock_127134413-1.jpeg?width=600&height=400&name=AdobeStock_127134413-1.jpeg "ACA 2027 affordability threshold increases to 10.22%")

# ACA 2027 affordability threshold increases to 10.22%

Authored by  Bukaty Companies on October 26, 2026

The IRS recently issued [Revenue Procedure 2026-26](https://www.irs.gov/pub/irs-drop/rp-26-26.pdf), increasing the affordability threshold to 10.22% of annual household income for plan years beginning in 2027. The rate is used to determine whether employer-sponsored health coverage is considered affordable under ACA employer shared responsibility provisions, and whether an employee is eligible for a premium tax credit (PTC) through the Marketplace.

| YEAR | AFFORDABILITY % | MAXIMUM PREMIUM CONTRIBUTIONS\* | FEDERAL POVERTY LEVEL (FPL) USED FOR CALCULATION |
| --- | --- | --- | --- |
| 2027 | 10.22% | $135.93 | $15,960 |
| 2026 | 9.96% | $129.89 | $15.650 |
| 2025 | 9.02% | $113.20 | $15,060 |

*\*Monthly maximum an employee can pay for employer-sponsored, self-only coverage under 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 instead.*

The affordability rate applies on a plan-year basis. Non-calendar year plans should continue using the 9.96% rate until their 2027 plan renewal.

Employers that fail to provide affordable coverage to a benefit-eligible employee may incur shared responsibility penalties under the ACA.

- **2027 4980H(a) penalty: $3,780**   
  Employers that don’t provide minimum essential coverage (MEC) to at least 95% of eligible employees and their dependents may be subject to a 4980H(a) penalty if at least one full-time employee receives subsidized coverage through the Marketplace.
- **2027 4980H(b) penalty: $5,670**   
  Employers that offer MEC to substantially all full-time employees but fail to meet affordability or minimum value requirements may be subject to 4980H(b) penalties for each full-time employee who receives subsidized coverage through the Marketplace.

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

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