Need 2026 figures? For coverage you have now, a 2026 special enrollment or your 2026 tax return, see the 2026 subsidies FAQ.
How Covered California Subsidies Are Calculated in 2027
Learn how premium tax credits and cost-sharing reductions are calculated, and how to estimate your savings for 2027.
How Do Subsidies Work?
Covered California offers two types of financial help:
Premium Tax Credits: Lower your monthly premium
Cost Sharing Reductions (CSR): Lower your out-of-pocket costs
Your subsidy amount is based on your household income relative to the Federal Poverty Level (FPL).
What Changes in the 2027 Calculation
The formula stays the same for 2027. Four of its inputs change, and who may get the credit at all:
A new poverty line: 2027 coverage uses the 2026 federal poverty guidelines, $15,960 for one person plus $5,680 for each added person ($15,650 and $5,500 for 2026 coverage). The same income is a slightly lower FPL percentage.
A slightly higher share: up to 10.22% of income for the benchmark Silver plan between 300% and 400% FPL (9.96% in 2026), and 2.15% below 133% FPL (2.1%), from IRS Rev. Proc. 2026-26.
Incomes just under the new 400% line qualify again: one person earning $62,600 to $63,839 got no premium tax credit through Covered California for 2026 and does for 2027; for a family of 4 the line moves from $128,600 to $132,000.
California's state subsidy reaches 200% FPL ($31,920 for one person; 165% in 2026), with $300 million instead of $190 million. Between 150% and 200% FPL it brings your share of the benchmark plan down to 2.8%-5.28% of income, from the federal 4.3%-6.78%.*
Who can get the credit: from January 1, 2027, only U.S. citizens and nationals, green card holders, Cuban and Haitian entrants and migrants from Compact of Free Association countries. Other lawfully present immigrants can still enroll, but get no premium tax credit and no cost-sharing reductions. Who is affected
The Same Income in 2026 and 2027
Income (one person)
2026: FPL
2026: you pay a month
2027: FPL
2027: you pay a month
$25,000
159%
$96
156%
$96
$35,000
223%
$217
219%
$219
$45,000
287%
$359
281%
$361
$55,000
351%
$457
344%
$468
$63,000
402%
No credit
394%
$537
What one person pays a month for the benchmark Silver plan with the premium tax credit alone; any premium above that is the credit. California's state subsidy lowers the amount further up to 200% FPL. * Estimate based on Covered California's published 2027 state subsidy design. Your Covered California quote is final.
Premium Tax Credits
Premium tax credits reduce your monthly insurance cost. Key points:
Covered California gives the credit in advance for incomes from 100% of FPL to just under 400% in 2027 ($63,840 for one person for 2027 coverage); above 400% FPL there is no premium tax credit. The enhanced subsidies of the American Rescue Plan ended December 31, 2025.
Based on the cost of the "benchmark" Silver plan in your area
You can use the credit to buy any metal tier plan
Credits are applied directly to your monthly premium
Cost Sharing Reductions
CSR benefits lower your deductibles and copays. You must choose a Silver plan to get CSR:
Silver 73: Income 200-250% FPL
Silver 87: Income 150-200% FPL
Silver 94: Income up to 150% FPL
Income Calculation (MAGI)
Subsidies are based on Modified Adjusted Gross Income (MAGI), which includes:
Wages and salary
Self-employment income (net)
Social Security benefits
Retirement income
Investment income
Certain deductions (retirement contributions, student loan interest) reduce MAGI.
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