---
title: IRS to raise 2021 affordability rate
description: The IRS recently raised the affordability threshold for the 2021 calendar year to 9.83% of household income.
---

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

# [IRS to raise 2021 affordability rate](https://insights.bukaty.com/bulletins/irs-to-raise-2021-affordability-rate)

 Written by [Bukaty Companies](https://insights.bukaty.com/bulletins/author/bukaty-companies) | July 29, 2020

The IRS recently raised the affordability threshold for the 2021 calendar year to 9.83% of household income from the 2020 threshold of 9.78%. This percentage is used to determine an individual’s eligibility for a premium tax credit and the affordability of employer-sponsored coverage. Failure to provide a full-time employee with affordable coverage can result in an employer shared responsibility penalty.

| **YEAR** | **AFFORDABILITY %** | **MAXIMUM MONTHLY CONTRIBUTION** | **PRIOR YEAR FEDERAL POVERTY LEVEL (FPL)** |
| --- | --- | --- | --- |
| 2021 | 9.83% | $104.52 | $12,760 |
| 2020 | 9.78% | $101.79 | $12,490 |
| 2019 | 9.86% | $99.75 | $12,140 |

For questions, contact your Bukaty benefits consultant at 913.345.0440

[View full post](https://insights.bukaty.com/bulletins/irs-to-raise-2021-affordability-rate)

```json
{
  "@context" : "http://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Bukaty Companies"
  },
  "dateModified" : "2020-07-29T17:59:18.960Z",
  "datePublished" : "2020-07-29T17:59:18Z",
  "headline" : "IRS to raise 2021 affordability rate",
  "image" : {
    "@type" : "ImageObject",
    "height" : 2449,
    "url" : "https://f.hubspotusercontent10.net/hubfs/2073866/iStock-1181086378-1.jpeg",
    "width" : 4898
  },
  "mainEntityOfPage" : "https://insights.bukaty.com/bulletins/irs-to-raise-2021-affordability-rate",
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "height" : 60.0,
      "url" : "https://2073866.fs1.hubspotusercontent-na1.net/hubfs/2073866/Bukaty%20New%20logo%20(2015)%20full%20color%20(29).png",
      "width" : 166.53772
    },
    "name" : "Bulletins"
  }
}
```