The IRS recently issued Revenue Procedure 2024-53, establishing the 2025 affordability threshold at 9.02% of annual household income. This is a 0.63% increase from the 2024 threshold of 8.39%. 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 MONTHLY PREMIUM CONTRIBUTIONS* | FEDERAL POVERTY LEVEL (FPL) |
| 2025 | 9.02% | $113.20 | $15,060 |
| 2024 | 8.39% | $101.94 | $14,580 |
| 2023 | 9.12% | $103.28 | $13,590 |
The affordability rate applies on a plan-year basis. Non-calendar year plans should continue using the 8.39% rate until their 2025 plan renewal. The 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 additional information, contact your Bukaty benefits consultant at 913.345.0440.