ACA Affordability 2026

Compliance check. Determine if your employer-sponsored health plan is "affordable" based on the projected IRS percentage for the 2026 plan year.

The amount you pay for self-only coverage.
Affordability Limit
$460
Affordable

Your premium is below the 9.20% threshold.

The "Affordability" Standard

I genuinely believe that navigating health insurance shouldn't require a law degree. Under the Affordable Care Act, an employer's job-based health insurance is considered affordable if the employee's share of the premium for the lowest-cost **self-only** plan does not exceed a certain percentage of their household income.

Why it matters: If your employer's plan is NOT affordable, you may be eligible for a premium tax credit (subsidy) to buy a plan through the Health Insurance Marketplace (Exchange).

Key Rule Points:

  • Self-Only Focus: The affordability test only looks at the cost of insuring *just you*, even if you choose a family plan.
  • Safe Harbors: Employers can use your W-2 wages, rate of pay, or the federal poverty level to calculate affordability.
  • Annual Adjustments: The IRS adjusts the percentage every year based on health care cost trends.