How much the cliff costs in Texas
Estimated 2027 premium tax credit for households earning exactly the 400% limit, using Texas's average benchmark premium. One dollar more and the credit drops to $0.
| Household | 400% FPL limit | Benchmark premium | Yearly subsidy at the limit |
|---|---|---|---|
| Single, age 40 | $63,840 | $760/mo | $2,596 |
| Single, age 60 | $63,840 | $1,614/mo | $12,843 |
| Couple, both 60 | $86,560 | $3,228/mo | $29,888 |
| Family of 4 (45, 45, 12, 10) | $132,000 | $2,627/mo | $18,037 |
Benchmark premiums are Texas averages for 2027 (estimated). Scaled by the federal default age curve (older adults pay up to 3 times as much as a 21-year-old). Prices in your county can be higher or lower. Applicable percentage: 10.22% at the limit (IRS Rev. Proc. 2026-26).
2027 income limits in Texas
Marketplace subsidies for 2027 use the 2026 poverty guidelines (HHS 2026 poverty guidelines).
| Household | 100% | 138% | 200% | 250% | 400% (cliff) |
|---|---|---|---|---|---|
| 1 | $15,960 | $22,025 | $31,920 | $39,900 | $63,840 |
| 2 | $21,640 | $29,863 | $43,280 | $54,100 | $86,560 |
| 3 | $27,320 | $37,702 | $54,640 | $68,300 | $109,280 |
| 4 | $33,000 | $45,540 | $66,000 | $82,500 | $132,000 |
| 5 | $38,680 | $53,378 | $77,360 | $96,700 | $154,720 |
| 6 | $44,360 | $61,217 | $88,720 | $110,900 | $177,440 |
Estimated 2027 benchmark premiums by age in Texas
Full monthly price of the second-cheapest silver plan before subsidies, for one person:
| Age 21 | Age 30 | Age 40 | Age 50 | Age 60 | Age 64 |
|---|---|---|---|---|---|
| $595 | $675 | $760 | $1,062 | $1,614 | $1,784 |
Texas 2026 average for age 40 ($661, KFF) × 1.15 for 2027. Scaled by the federal default age curve (older adults pay up to 3 times as much as a 21-year-old). Real 2027 prices are published when open enrollment begins.
Medicaid and low-income coverage in Texas
Texas has not expanded Medicaid. Marketplace subsidies start at 100% of the poverty line ($15,960 for one person), so adults below that and not eligible for traditional Medicaid can fall into the coverage gap.
Staying under the cliff
If your income is close to $63,840 (single) or $86,560 (couple), pre-tax 401(k), HSA and traditional IRA contributions lower the income the marketplace counts. See how to lower your MAGI, or run your exact numbers in the Texas calculator. Already enrolled in 2026? Check whether you'll owe money back at tax time.