Applicable Percentage Table for 2026 and 2027

The applicable percentage is the share of household income you are expected to pay toward a benchmark Silver plan. It rises with income. For 2026 it runs 2.10% – 9.96% of household income¹; for 2027, 2.15% – 10.22% of household income².

The COBRA vs Marketplace calculator applies the right table for the coverage year you pick. This page prints both tables and explains how a figure between two rows is found.

The applicable percentage table for 2026

Rev. Proc. 2025-25, issued on July 18, 2025, sets the table for taxable years beginning in calendar year 2026.

Household income as a percentage of the federal poverty line	Initial percentage, 2026	Final percentage, 2026
Less than 133%	2.10%	2.10%
At least 133% but less than 150%	3.14%	4.19%
At least 150% but less than 200%	4.19%	6.60%
At least 200% but less than 250%	6.60%	8.44%
At least 250% but less than 300%	8.44%	9.96%
At least 300% but not more than 400%	9.96%	9.96%

Every row of the 2026 table above is transcribed from section 3.01 of that revenue procedure.

The applicable percentage table for 2027

Rev. Proc. 2026-26, issued on July 21, 2026, sets the table for taxable years beginning in calendar year 2027.

Household income as a percentage of the federal poverty line	Initial percentage, 2027	Final percentage, 2027
Less than 133%	2.15%	2.15%
At least 133% but less than 150%	3.23%	4.3%
At least 150% but less than 200%	4.3%	6.78%
At least 200% but less than 250%	6.78%	8.66%
At least 250% but less than 300%	8.66%	10.22%
At least 300% but not more than 400%	10.22%	10.22%

Both tables stop at 400% of the poverty line. That is the statutory limit described on the 400% subsidy cliff page: No premium tax credit above 400% of the federal poverty level³.

How a figure between two rows is found

Within a band the percentage moves in a straight line from the initial percentage to the final percentage. It does not jump at the band edge.

Example. Household income at 175% of the poverty line for 2026 coverage sits halfway through the 150–200% band. Halfway between 4.19% and 6.60% is 5.395%, which rounds to 5.40%. The same income for 2027 coverage sits halfway between 4.3% and 6.78%, or 5.54%.

Why the 2027 figures are higher

Rev. Proc. 2026-26 explains the change in its own section 2. Until 2025 the premium growth measure was based on per-enrollee spending for employer-sponsored insurance. From benefit year 2026 the measure also captures increases in individual-market premiums.

That is a change of method, not a change of statute. The bands and the 400% end point are unchanged; the percentages inside them are indexed on a different growth measure.

The required contribution percentage

A second percentage in the same documents decides whether an offer of employer coverage counts as affordable. It is 9.96%⁴ for plan years beginning in 2026 and 10.22%⁵ for plan years beginning in 2027.

If the employee’s share of self-only employer coverage costs no more than that share of household income, the offer is affordable. An affordable offer that also meets minimum value blocks the premium tax credit for the whole tax family.

What percentage of income do I pay for a benchmark plan?

It depends on household income as a percentage of the federal poverty line, and on the coverage year. For 2026 the range runs from 2.10% below 133% of the poverty line to 9.96% in the 300–400% band. For 2027 the same two ends are 2.15% and 10.22%.

What is the benchmark plan?

The Form 8962 instructions define it as “the second lowest cost silver plan (SLCSP) premium offered through the Marketplace where you reside that applies to your coverage family”. It is a pricing reference, not a plan you have to buy.

Can I use the credit on a Bronze or Gold plan?

Yes. The benchmark fixes the size of the credit in dollars; the credit is then applied to whichever Marketplace plan you enroll in. A cheaper plan than the benchmark leaves a smaller net premium, and a more expensive one a larger net premium.

Why did the percentage go up for 2027?

The IRS applied a revised premium growth measure that blends individual-market premium growth with employer-sponsored premium growth. Rev. Proc. 2026-26 section 2 attributes the change to HHS guidance in the 2026 Marketplace Integrity and Affordability rule, 90 Fed. Reg. 27074.

Is the percentage applied to my premium or my income?

To your income. The percentage sets the dollar amount you are expected to contribute each year; the credit is the benchmark premium minus that amount, and it is never less than zero.

Does the table decide whether my employer’s plan is affordable?

No, a separate figure in the same revenue procedure does. That required contribution percentage is 9.96%⁴ for 2026 plan years and 10.22%⁵ for 2027 plan years.