ACA tax credits in Colorado for 2026 and 2027

If you buy a plan through Connect for Health Colorado, a federal premium tax credit can lower your monthly premium when your household income is between 100% and 400% of the federal poverty level. The enhanced credits Congress added for 2021 through 2025 expired on December 31, 2025 and had not been restored as of October 2026, so for 2026 you are expected to pay between 2.10% and 9.96% of your income toward a benchmark Silver plan (IRS Rev. Proc. 2025-25), and for 2027 between 2.15% and 10.22% (IRS Rev. Proc. 2026-26). Above 400% of the poverty level there is no federal credit at all. Colorado adds its own help, Colorado Premium Assistance, for qualifying households between 100% and 400%, and that state help continues for 2027.

Three kinds of help, and who gets each

The Colorado Division of Insurance reports that Colorado funded extra reinsurance and Colorado Premium Assistance in the August 2025 special session (HB25B-1006) and continued it in 2026 with SB26-178. Connect for Health Colorado says that support continues for 2027. The marketplace calculates the exact state amount for your household when you apply, so I do not quote a dollar figure here.

What changed when the enhanced credits expired

• The 400% cliff is back. From 2021 to 2025 there was no upper income limit. Since January 1, 2026, a household one dollar above 400% of the poverty level gets no federal credit.
• The expected share of income rose. Under the enhanced rules some households paid 0% and nobody paid more than 8.5%. In 2026 the range is 2.10% to 9.96%, and in 2027 it is 2.15% to 10.22%.
• Repayment caps are gone. Starting with tax year 2026, if your advance credit turns out too large, you repay the full excess when you file. Before 2026 the repayment was capped for incomes under 400%. This makes an accurate income estimate, and reporting changes promptly, far more important.
• Colorado felt it. The Division of Insurance said in July 2026 that the expiration resulted in a doubling of premium costs on average for hundreds of thousands of Coloradans in the individual market for 2026.

The poverty levels that set your credit

The marketplace measures your income against the federal poverty guidelines published the January before your coverage year. 2026 coverage uses the 2025 guidelines; 2027 coverage uses the 2026 guidelines from the U.S. Department of Health and Human Services.

The expected-contribution tables for 2026 and 2027

Within each band the percentage slides up in a straight line as income rises. The credit equals the price of the second-lowest-cost Silver plan in your area (the benchmark) minus your expected contribution. You can apply the credit to any metal level.

Worked examples

These use the same maths as our subsidy calculator. They show what you would be expected to pay toward the benchmark plan; the credit covers the rest of the benchmark's price, whatever the benchmark costs in your county.

How to avoid a surprise at tax time

• Estimate income the way the IRS defines it: modified adjusted gross income, which adds back untaxed foreign income, tax-exempt interest and non-taxable Social Security benefits.
• Count everyone in your tax household, including dependents, and only them.
• Report raises, job changes, marriages, divorces and new babies to Connect for Health Colorado within 30 days.
• If your income is close to 400%, plan ahead. A traditional IRA or HSA contribution can lower modified adjusted gross income; a large Roth conversion or capital gain can push you over the cliff.
• Keep Form 1095-A when it arrives. You need it to file Form 8962 and reconcile your credit.

Employer coverage and the affordability test

If a job offers you coverage that is affordable and meets minimum value, you cannot get a premium tax credit for yourself. For 2026, job coverage is affordable if your share of the lowest-cost self-only plan is 9.96% of household income or less; for 2027 the figure is 10.22%. Family members are tested separately using the cost of family coverage, which fixed the old family glitch in 2023.

---

The bottom line

Your credit depends on three numbers: your 2027 household income estimate, your household size and the benchmark Silver price in your county. Get those right and the rest follows. If you are close to 400% of the poverty level, or your income is hard to predict because you are self-employed or newly retired, send Lisa a message or call (303) 887-8584 before you enroll. You can also run your numbers in our Compare Plans tool.