Premium tax credit: who qualifies in 2026 and 2027

Who qualifies for 2026 coverage

• Income: household income of at least 100% and no more than 400% of the federal poverty level for your family size.
• Where you buy: the plan must come from HealthCare.gov or your state's Marketplace. Plans bought directly from an insurer outside the Marketplace don't get the credit.
• No other qualifying coverage: you generally can't get the credit for a month you could get job-based coverage that is affordable and meets minimum value, or government coverage such as Medicare, Medicaid or TRICARE.
• Tax filing: you can't be claimed as someone else's dependent, and married couples generally must file jointly (the IRS has narrow exceptions for victims of domestic abuse or spousal abandonment).

Below 100%? In states that expanded Medicaid, adults with income up to about 138% of the poverty level usually qualify for Medicaid instead. In states that didn't, HealthCare.gov still says to fill out a Marketplace application.

What changed for 2026, and what's known about 2027

From 2021 through 2025, temporary law removed the 400% income cap and made the credit larger. HealthCare.gov now says the additional savings available because of the COVID pandemic ended on December 31, 2025. IRS Publication 505 for 2026 lists two changes:

• If your household income is more than 400% of the federal poverty level, you're no longer eligible for the credit.
• There is no longer a limit on how much you have to pay back if you got too much in advance credit payments.

2027 status: As of October 12, 2026, HealthCare.gov says 2027 income levels and savings are coming November 1. Until then, its estimate tool uses 2026 amounts. We found no HealthCare.gov or IRS notice that the extra savings were restored for 2027. If that changes, HealthCare.gov and your Marketplace application will show it.

Even if you're told you don't qualify for savings, HealthCare.gov says to update your most recent application. You may still qualify.

Advance payments or at tax time

• In advance: the Marketplace pays some or all of the credit straight to your insurer each month, so your bill is lower. You can use all, some or none of it this way.
• At tax time: pay the full premium all year, then claim the whole credit on your federal return.
• Based on your estimate: the credit uses the income you expect for the coverage year, not last year's. Report income and household changes to the Marketplace right away so your advance payments stay close to what you'll actually qualify for.

Reconciling on Form 8962

1. Get Form 1095-A. It should arrive by mail by mid-February, and HealthCare.gov says it may be in your Marketplace account from mid-January. It lists your premiums, the second lowest cost Silver plan premium and the advance payments made.
2. Fill out Form 8962 with those numbers and attach it to your federal return. You must file a return with Form 8962 if you got advance payments, even if you wouldn't otherwise file.
3. Settle the difference. If you used less credit than you qualify for, the rest lowers your tax or raises your refund. If you used more, you pay it back.

Starting with tax year 2026, there's no cap on that repayment, so a raise, a bonus or a new job during the year can mean a bigger tax bill than in past years. Taking only part of the credit in advance is one way some people leave room for income surprises. Check with a tax advisor about your situation.

The IRS says not reconciling can delay your refund and may affect whether you get advance payments in future years.

How to get the credit

Fill out a Marketplace application on HealthCare.gov or your state's site. It checks your household and income estimate and tells you your credit, whether you qualify for extra savings on out-of-pocket costs (only in Silver plans), or whether you qualify for Medicaid or CHIP. Applications for 2027 coverage open November 1; see open enrollment for deadlines.

Gabriel can quote Marketplace plans for your ZIP code and household, show the price after any tax credit, and open your own application with a licensed agent in most states. You choose the plan and finish the application.

Gabriel is not an insurer. Health insurance quotes and enrollment are handled by Gabriel Labs, Gabriel's separately licensed insurance agency. Gabriel membership is not health insurance and doesn't qualify for the premium tax credit.