The 2027 subsidy cliff by household size
Premium tax credits for 2027 coverage go to households earning 100% to 400% of the federal poverty level. Above 400%, the credit isn't reduced. It is gone. The Marketplace measures 2027 eligibility against the prior year's poverty guidelines, so these are the lines for North Carolina and the other 47 contiguous states and DC:
See the numbers
| Item | Value | Status |
|---|---|---|
| 1 person | $63,840 | final |
| 2 people | $86,560 | final |
| 3 people | $109,280 | final |
| 4 people | $132,000 | final |
| 5 people | $154,720 | final |
The 400% of poverty income limit rises with household size, from $63,840 for one person to $154,720 for five. Household income above the line for your size gets no premium tax credit for 2027 coverage.
400% of the federal poverty level for 2027 coverage
| Household size | Income limit for any subsidy |
|---|---|
| 1 person | $63,840 |
| 2 people | $86,560 |
| 3 people | $109,280 |
| 4 people | $132,000 |
| 5 people | $154,720 |
Why the cliff is back
From 2021 through 2025, enhanced subsidies removed the upper income limit. Those enhanced subsidies expired December 31, 2025, and under current law they do not return for 2027. That means households who got help two years ago may now be over the line. If you read an article that says there is no income limit, check its date. For 2027 coverage it is out of date. See will the enhanced subsidies come back.
What counts as income, and why it matters near the line
The Marketplace uses your household's modified adjusted gross income (MAGI) for 2027 — an estimate you give when you apply, settled when you file your 2027 taxes.
- Count everyone you'll claim on your tax return, not just the people who need coverage.
- Self-employed? Use net business income after expenses, not gross sales.
- Retirement contributions can lower MAGI. Pre-tax contributions to a traditional IRA, 401(k) or HSA reduce the number the Marketplace uses.
An example: a family of four expecting $131,000 is under the $132,000 line and qualifies for help. The same family at $133,000 does not. If your estimate lands that close, talk to your tax preparer before you enroll.
If you're over the line
- Compare full-price Marketplace plans anyway. Bronze and catastrophic-eligible plans can still be the safest choice.
- Look at plans sold outside the Marketplace. Same rules on pre-existing conditions, sometimes different networks.
- Ask about alternatives carefully. Some lower-cost options are not major medical insurance. See fixed-benefit vs. major medical plans.
Deadlines that apply
Open Enrollment for 2027 starts November 1, 2026. Pick a plan by December 15, 2026 for coverage that starts January 1. See when Open Enrollment for 2027 runs.
Quick questions
Is the 2027 subsidy cliff based on 2026 or 2027 poverty guidelines?
2027 coverage uses the prior year's guidelines, so the 2026 poverty table sets the 2027 cliff: $63,840 for one person.
What if my income ends up over the cliff after I got a subsidy?
You may have to repay the advance credit when you file taxes. Update your income on HealthCare.gov as soon as you know it has changed.
Does the cliff apply in North Carolina?
Yes. North Carolina uses HealthCare.gov, so the federal limits apply here.
How The Jordan Insurance Agency helps
The Jordan Insurance Agency is an independent agency based in Charlotte, North Carolina. We compare plans across the carriers available in your county, check your doctors and prescriptions, and show you what a plan costs in practice.
There is no fee for our help. Carriers pay the agent, so your premium is the same whether you enroll with us or on your own.
Next steps: read how ACA subsidies work and see options if you can't afford health insurance.
Subsidy limits checked October 16, 2026. Sources: HHS ASPE — 2026 federal poverty guidelines, HealthCare.gov — Dates and deadlines, healthinsurance.org — 2027 subsidy eligibility, Peterson-KFF — 2027 Marketplace premiums.
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