# ACA affordability calculator for 2026 and 2027

Source: https://www.getprescience.com/tools/aca-affordability-calculator
Author: Aditya Jain, MD, Cofounder and COO, Prescience
Published: 2026-10-13
Updated: 2026-10-13

Employer coverage is affordable under the ACA when the employee's cost for the cheapest self-only, minimum-value plan is no more than 9.96% of household income in 2026, or 10.22% in 2027. Employers can't see household income, so the IRS lets them test against one of three safe harbors instead. Enter your numbers to see the most you can charge.

- **2027 affordability limit:** 10.22%
- **2026 affordability limit:** 9.96%
- **2027 FPL safe harbor:** $135.92/month
- **2027 penalty, unaffordable:** $5,670 per subsidized employee

## Check your contribution

_Interactive calculator: open the page in a browser to use it. The rules and figures it applies follow._

The calculator runs in your browser and doesn't send what you enter anywhere. Test the lowest-paid employee in each class: if the cheapest plan is affordable for them, it's affordable for everyone paid more under the same safe harbor.

## The three safe harbors

**Most an employee can pay per month for self-only coverage**

| Safe harbor | How it works | 2026 | 2027 |
| --- | --- | --- | --- |
| Federal poverty line | The single-person poverty line times the limit, divided by 12. One number for every employee. | $129.89 | $135.92 |
| Rate of pay, hourly | The hourly rate times 130 hours times the limit. | $258.96 at $20/hour | $265.72 at $20/hour |
| Rate of pay, salaried | Monthly salary times the limit. | $498 at $60,000 | $511 at $60,000 |
| W-2 wages | Box 1 wages times the limit, checked after the year ends. | $498 at $60,000 | $511 at $60,000 |

- **Federal poverty line** is the simplest and safest: price the cheapest plan at or below it and you're done. It uses the poverty line in effect six months before the plan year, so 2026 plans use the 2025 line and 2027 plans the 2026 line. Alaska ($169.90 in 2027) and Hawaii ($156.36) have higher lines.
- **Rate of pay** works when you know each employee's hourly rate or salary up front. Use the lowest rate during the year for hourly staff.
- **W-2** is the riskiest: Box 1 excludes pre-tax contributions such as 401(k) deferrals and Section 125 premiums, and you only know the final number after the year ends.
- Amounts here are rounded down to the cent, so a contribution at or below them passes.

## Who has to pass the test

Only [applicable large employers](https://www.getprescience.com/tools/ale-calculator) (50 or more full-time employees including equivalents) face the employer mandate. If a full-time employee's offer is unaffordable and they get a marketplace premium tax credit instead, the employer owes $5,010 a year for that employee in 2026 and $5,670 in 2027. The total can't exceed the penalty for offering no coverage at all: $3,780 per full-time employee after the first 30 in 2027.

Affordability is tested on self-only coverage only. Family coverage can cost more without failing the test, though since 2023 family members can qualify for marketplace subsidies when their own cost passes the limit.

> **Smaller companies:** Under 50 full-time equivalents there's no federal penalty, but affordability still matters: an employee whose offer is unaffordable can turn it down and buy subsidized marketplace coverage, and ICHRA allowances use a similar test.

## Making coverage affordable without raising your cost

The cheapest way to pass affordability is a plan that costs less to begin with. At Prescience we price plans for small teams so employers can cover more of the premium for the same budget.

At Prescience, we design and run your company's health plan, from setup and enrollment to claims, compliance and COBRA. What your team gets:

- **An effective $0 deductible,** so the plan helps from the first visit.
- **Simple copays** shown before a visit, capped by a low out-of-pocket maximum.
- **A broad national PPO network,** plus providers we contract with directly.
- **24/7 physician-led care navigation:** a care team that finds the right provider, books appointments and explains costs up front.

What your company gets: one monthly cost set in your quote, usually 10–20% below comparable fully insured coverage and fixed before the plan starts, with no admin fees. You keep your payroll provider, and the plan can start mid-year.

## Frequently asked questions

**What is the ACA affordability percentage for 2027?**

10.22% of household income for plan years beginning in 2027, up from 9.96% in 2026 (IRS Revenue Procedure 2026-26).

**What is the FPL safe harbor amount for 2027?**

$135.92 a month for self-only coverage in the 48 contiguous states and DC, based on the 2026 poverty line of $15,960. Alaska is $169.90 and Hawaii $156.36.

**Is affordability based on the employee's cost for family coverage?**

No. The employer test uses the employee's cost for the lowest-cost self-only plan that provides minimum value.

**Do employers with fewer than 50 employees need to meet affordability?**

Not for the federal employer mandate, which only applies to applicable large employers. It still affects whether employees can get marketplace subsidies instead.

## Sources

- [IRS Revenue Procedure 2025-25 (2026 affordability percentage)](https://www.irs.gov/pub/irs-drop/rp-25-25.pdf)
- [IRS Revenue Procedure 2026-26 (2027 affordability percentage)](https://www.irs.gov/pub/irs-drop/rp-26-26.pdf)
- [IRS Revenue Procedure 2025-26 (2026 employer mandate penalties)](https://www.irs.gov/pub/irs-drop/rp-25-26.pdf)
- [IRS Revenue Procedure 2026-22 (2027 employer mandate penalties)](https://www.irs.gov/pub/irs-drop/rp-26-22.pdf)
- [IRS, Minimum value and affordability](https://www.irs.gov/affordable-care-act/employers/minimum-value-and-affordability)
- [HHS ASPE, Poverty guidelines](https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines)