Everyone you claim on your return, including yourself
Alaska and Hawaii have their own poverty guidelines
Modified adjusted gross income (MAGI) — what you expect to earn, not last year
What counts toward MAGI?
The second-lowest-cost Silver plan for your household — look it up on healthcare.gov
Why this plan and not the one I want to buy?
Premium tax credit
$0
Estimate for reference only, not verified proof — check the sources below, and their access date, before relying on this for a claim or filing.
Credit across the income range, with the 400% cliff as the drop to zero. The dot is your household.
- Your income as a share of the poverty line
- 0%
- You pay for the benchmark plan
- $0
- —
- $0
- —
- $0
Alabama ACA subsidy cliff 2027
The income where the Marketplace subsidy ends in Alabama, what crossing it costs, and a calculator for your own household.
For 2027 coverage in Alabama, the ACA premium tax credit stops at $86,560 of income for a couple — 400% of the poverty line. For a 40-year-old couple buying the benchmark Silver plan, going $1 over that line costs an estimated $6,634 a year in lost subsidy, because the credit drops straight to zero instead of tapering.
Reviewed by RuleCost Editorial Team. Rules for 2027, updated 13 Oct 2026.
How to use it
- 1The calculator starts with a couple in Alabama at the cliff line and the state's average benchmark premium for age 40. Change the household size and income to yours.
- 2Replace the premium with your own second-lowest-cost Silver plan from HealthCare.gov or your state marketplace — it depends on county and ages.
- 3Read how far you are from the cliff and what crossing it would cost for the year.
Alabama at a glance
| Subsidy ends above (2027 coverage) | $63,840 single, $86,560 couple, $132,000 family of four |
|---|---|
| Average benchmark premium, age 40 (2026) | $645 a month |
| Age rating | Alabama's own age curve |
| Medicaid expansion | No |
Where and when to enroll in Alabama for 2027
Alabama residents enroll through HealthCare.gov. Open enrollment for 2027 coverage runs from 1 November 2026 to 15 January 2027; sign up by 15 December 2026 for coverage from 1 January.
No state-funded premium help on top of the federal credit had been announced in Alabama for 2027 when we checked.
Dates and programs as published by 13 October 2026. Marketplaces sometimes change them, so check HealthCare.gov before a deadline.
2027 income limits by household size in Alabama
Marketplace help for 2027 coverage is measured against the 2026 federal poverty guidelines, and the limits stay fixed for the whole plan year. Household size is everyone on your tax return, not everyone who needs coverage.
| People | Subsidy ends above | Subsidy starts at | 94% Silver up to | Silver extras end |
|---|---|---|---|---|
| 1 | $63,840 | $15,960 | $23,940 | $39,900 |
| 2 | $86,560 | $21,640 | $32,460 | $54,100 |
| 3 | $109,280 | $27,320 | $40,980 | $68,300 |
| 4 | $132,000 | $33,000 | $49,500 | $82,500 |
| 5 | $154,720 | $38,680 | $58,020 | $96,700 |
| 6 | $177,440 | $44,360 | $66,540 | $110,900 |
| 7 | $200,160 | $50,040 | $75,060 | $125,100 |
| 8 | $222,880 | $55,720 | $83,580 | $139,300 |
- Subsidy ends above — the 400% cliff. Just under it, the most you pay for the benchmark plan is 10.22% of income: $544 a month for one person, $737 for two, $1,124 for four. One dollar over, you pay full price.
- Subsidy starts at — 100% of the poverty line. Alabama did not expand Medicaid; who is covered below this line is in the coverage gap section below.
- 94% Silver up to — at or under 150% of the poverty line, a Silver plan pays 94% of covered costs instead of the usual 70%, which means much lower deductibles and copays. Between 150% and 200% it pays 87%.
- Silver extras end — above 250% the extra Silver savings (73% at 200–250%) stop. They only apply if you pick a Silver plan.
What the cliff costs a 40-year-old couple
Two people, both 40, with a combined benchmark premium of about $1,290 a month ($15,480 a year). At $86,560 of income they pay at most 10.22% of it — $8,846 a year — and the credit covers the rest.
| Income | Credit | They pay |
|---|---|---|
| $86,560 | $6,634 | $8,846 |
| $86,561 | $0 | $15,480 |
Alabama sets its own age curve, so a 60-year-old estimate isn't comparable across states; older couples pay more and lose more. Compare every state.
Premiums are 2026 averages. 2027 premiums are published in late October, and insurers' proposed rates point to double-digit increases — which would make the cliff bigger, not smaller.
The Medicaid coverage gap in Alabama
Alabama covers parents up to 18% of the poverty line ($4,918 a year for a family of three) and no adults without dependent children unless they are pregnant or disabled. The Marketplace subsidy starts at 100% of the poverty line, so adults without children earning under $15,960 and parents in a family of three earning between $4,918 and $27,320 get neither.
KFF's July 2026 analysis puts 1.2 million uninsured adults in the coverage gap across the non-expansion states, 78% of them without dependent children.
If your income is close to the poverty line, the estimate you give the Marketplace matters. It decides on the income you expect for 2027. If it put you between 100% and 400% when you enrolled and the credit was paid in advance, you keep that credit even if the year ends below 100%, unless the information you gave was intentionally or recklessly wrong.
Questions
- What is the ACA subsidy cliff in Alabama for 2027?
- The income at which the premium tax credit ends: 400% of the federal poverty line. For 2027 coverage that is $63,840 for one person, $86,560 for a couple and $132,000 for a family of four.
- How much does going over the cliff cost in Alabama?
- It depends on age and county. For a 40-year-old couple paying the Alabama average benchmark premium of about $1,290 a month for both, the credit at the cliff edge is worth about $6,634 a year. One dollar more income and all of it goes.
- Why is my premium different from this estimate?
- This uses the Alabama average benchmark premium for a 40-year-old. Your real benchmark depends on your county, the ages of everyone covered and the plan year, so check it on HealthCare.gov or your state's marketplace and enter it in the calculator above.
- Has Alabama expanded Medicaid?
- No. Alabama covers parents up to 18% of the poverty line ($4,918 a year for a family of three) and no adults without dependent children unless they are pregnant or disabled. The Marketplace subsidy starts at 100% of the poverty line, so adults without children earning under $15,960 and parents in a family of three earning between $4,918 and $27,320 get neither.
- When is the 2027 open enrollment deadline in Alabama?
- On HealthCare.gov, open enrollment for 2027 coverage runs from 1 November 2026 to 15 January 2027; sign up by 15 December 2026 for coverage from 1 January. Dates as published by 13 October 2026.
- What if my income ends up below the poverty line in Alabama?
- If the Marketplace estimated your 2027 income at 100% to 400% of the poverty line when you enrolled and the credit was paid in advance, you stay eligible for that credit even if the year ends below 100% — unless the information you gave was intentionally or recklessly wrong (26 CFR 1.36B-2(b)(6)). Estimate honestly, and report changes during the year.
- Can I get back under the cliff?
- Sometimes. The cliff is measured on modified adjusted gross income (MAGI), which pre-tax contributions to a traditional 401(k), traditional IRA or HSA can lower. The limits and deadlines are specific, so confirm with a tax professional before relying on it.