10.22%: the 2027 affordability line for employer coverage.
The IRS set the ACA affordability percentage at 10.22% for plan years that begin in 2027, up from 9.96% for 2026. It is the first year the percentage is above 10%.
It is the most an applicable large employer can charge for self-only coverage and still be treated as offering affordable coverage, measured against income. Send us your renewal and we will give you a second opinion in writing.
Three things to know about the number.
What it applies to
Applicable large employers, meaning those with 50 or more full-time equivalent employees, and the cost of the lowest-cost self-only plan that provides minimum value (IRC §36B(c)(2)(C); 26 CFR §54.4980H-5(e)).
Why it moved
The IRS adjusts the percentage each year. This year’s increase raises the line employers are tested against, so contribution rates that were affordable in 2026 are not automatically affordable in 2027.
What it does not do
It does not change what employees may owe for dependents or what the marketplace charges. See how the affordability test ignores marketplace prices.
Keep reading.
The 2027 ACA Affordability Percentage: Employer Guide
What the IRS changed for 2027 and what to check before open enrollment. Back to the guide.
Where these figures and rules come from.
Figures and rules
IRS Rev. Proc. 2026-26 (2027 affordability percentage of 10.22%, up from 9.96% for 2026) and Rev. Proc. 2026-22 (2027 employer shared responsibility payment amounts). IRC §36B(c)(2)(C); 26 CFR §54.4980H-5(e). This page is general information, not legal or tax advice.
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