If you enroll through Connect for Health Colorado, there are now three types of financial help you might qualify for, depending on your income and household:
- Federal Premium Tax Credits (APTC) to lower your monthly premium.
- Colorado Premium Assistance (CPA), a new state-funded discount that stacks on top of the federal tax credit for many people.
- Cost-sharing reductions (CSR) that lower your deductible, copays, and out of pocket costs on Silver plans. Colorado has its own enhanced CSR program that makes these Silver plans especially generous.
Estimate Your Income: MAGI Calculator
Financial assistance is available only with eligible on-exchange plans purchased through Connect for Health Colorado. Starting with 2027 coverage, some customers can also buy off-exchange plans through the same platform. These are marked “Not eligible for savings” and cannot receive subsidies, including at tax filing. Read more about the new off-exchange shopping options.
2027 income limits for premium tax credits
For 2027 coverage, the income limits below represent 400% of the federal poverty level. If your annual household income exceeds the amount for your tax household size, you won’t qualify for a federal premium tax credit.
| Tax household size | 2027 annual income limit |
|---|---|
| 1 person | $63,840 |
| 2 people | $86,360 |
| 3 people | $108,880 |
| 4 people | $131,400 |
| 5 people | $153,920 |
| 6 people | $176,440 |
| 7 people | $198,960 |
For each additional household member, add $22,520.
These are income eligibility limits, not a guarantee of financial assistance. Your tax credit also depends on your household’s circumstances and the cost of coverage where you live.
Use our ACA MAGI calculator to estimate your annual household income for 2027 coverage. Marketplace assistance is based on modified adjusted gross income, not take-home pay. Household size generally means your tax household, including family members who aren’t applying for coverage.
From 2021 through 2025, federal law temporarily boosted Premium Tax Credits and removed the old income cap at 400 percent of the Federal Poverty Level. Many people paid no more than 8.5 percent of their income for the benchmark Silver plan, and higher income households could still qualify for help.
How federal premium tax credits work
That temporary expansion ended on December 31, 2025. Beginning in 2026, we are back to the original ACA rules:
- Federal Premium Tax Credits are generally available for incomes roughly between 100 percent and 400 percent of the Federal Poverty Level.
- The amount you are expected to pay for the second lowest cost Silver plan is again on a sliding scale, roughly 2.1 percent to about 10 percent of your household income in 2026.
- If your income is over 400 percent of the Federal Poverty Level, you do not qualify for federal Premium Tax Credits. This is the return of the “subsidy cliff.”
The tax credit still works the same way:
- You estimate your household MAGI (modified adjusted gross income).
- The marketplace uses that estimate to calculate your advance tax credit.
- You can take the tax credit throughout the year to reduce your monthly cost, or wait and claim it when you file your taxes.
You can also choose to take less than the full amount during the year if your income is uncertain and you want to reduce the chance of owing money back later.
What happens if your income changes?
Federal advance premium tax credits are based on your estimated income. When you file your tax return, the amount paid toward your coverage is compared with the tax credit you actually qualify for.
For 2026 and later coverage years, there is no repayment cap on excess advance premium tax credits. If you receive more than you qualify for, you must repay the full excess amount, even if your income stays below the subsidy cliff.
If your final household MAGI exceeds the income limit in the table above, you generally lose eligibility for the entire federal premium tax credit and must repay all advance credits received for that year.
If your income is uncertain, you can use only part of your available tax credit each month. Any remaining credit you qualify for can be claimed when you file your return. Update your application during the year as your income estimate changes and at tax time you’ll reconcile the tax credit with the IRS. If your income ends up lower, you may get more credit. If it ends up higher, you may have to repay part of the advance.
How to claim the ACA tax credit
Colorado Premium Assistance for 2027
Colorado Premium Assistance (CPA) provides additional help with monthly premiums for eligible customers enrolled through Connect for Health Colorado.
For 2027, eligible households may receive:
- Up to $70 per month for the first household member with a premium.
- Up to $25 per month for each additional household member with a premium.
For example, a household with four eligible members who each have a premium could receive up to $145 per month in state assistance. The actual amount depends on the premiums remaining after federal tax credits.
Eligibility remains the same as in 2026. CPA is available to customers eligible for federal advance premium tax credits with household income between 100% and 400% of the federal poverty level. It is applied automatically, without a separate application.
Only household members with a premium count toward the assistance amount. Being part of the tax household doesn’t automatically mean someone generates an additional $25.
Unlike federal advance premium tax credits, CPA does not require reconciliation on your tax return. You don’t have to repay it if your final income is higher than expected. You should still update your marketplace application when your income or household changes.
Cost-sharing reductions and Colorado’s enhanced Silver plans
Cost-sharing reductions (CSR) are available on Silver plans for households with income roughly between 100 percent and 250 percent of the Federal Poverty Level who do not qualify for Medicaid.
These reduce your deductible, your copays, and your out-of-pocket maximum.
Colorado enhances these even more. The state’s program raises the value of CSR Silver plans so that everyone who qualifies gets a plan with about a 94 percent actuarial value, which is richer than a typical Platinum plan.
This often means:
- Very low deductibles
- Lower copays for most services
- A much lower out-of-pocket maximum
If you qualify for CSR and are currently in a Bronze or Gold plan, it is worth looking at the enhanced Silver options, because they dramatically reduce what you pay when you actually use care.
If you do not qualify for CSR, Bronze and Gold plans are often better values than Silver, since Silver plans are priced higher due to “silver loading.”
A few final reminders
- You can only enroll in ACA-compliant plans during Open Enrollment or after a qualifying life event.
- Catastrophic plans are not eligible for subsidies, even when bought through the exchange.
- If your income or household size changes, update your application so your APTC stays accurate.
If you are unsure where your income for the coverage year will land or are worried about crossing the 400 percent FPL cliff, reach out. We are happy to look at scenarios with you and help you understand how the mix of APTC, Colorado Premium Assistance, and cost-sharing reductions could apply to your situation.