What is the penalty for unaffordable coverage in 2027?

If an applicable large employer offers coverage to at least 95% of full-time employees but an offer is unaffordable or lacks minimum value, and the employee receives a premium tax credit, the 2027 section 4980H(b) amount is $5,670 a year per such employee, capped at the “A” amount. The “A” amount, for failing to offer coverage at all, is $3,780 a year per full-time employee after the first 30 (Rev. Proc. 2026-22).

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What to know

The short answer, in three parts.

The “B” payment

$5,670 a year per full-time employee who receives a premium tax credit, capped at the “A” amount.

The “A” payment

$3,780 a year per full-time employee after the first 30, when coverage is not offered to enough employees.

Where the numbers come from

IRS Rev. Proc. 2026-22 for 2027.

Keep reading.

The guide

The 2027 ACA Affordability Percentage: Employer Guide

What the IRS changed for 2027 and what to check before open enrollment. Back to the guide.

Next step

Read about the “B” payment.

Sources

Where these figures and rules come from.

Sources

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 §4980H; 26 CFR §54.4980H-5(e). This page is general information, not legal or tax advice.

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