2026 Employer Health Coverage Affordability Test

For 2026 the IRS required contribution percentage is 9.96% of household income (Rev. Proc. 2025-25). This is an educational screen, not a Marketplace determination.

By Joseph F. Gioia, independent licensed insurance broker

Use the 2026 test Review with Joseph

Next: check available Marketplace plan prices

You can compare full prices while job-coverage eligibility is being reviewed. Tax-credit estimates are withheld when an employer offer requires further review.

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You can use this tool without providing your name or phone number. Your results will appear below.

How this tool works and official sources

What the affordability calculation tells you

For a plan year beginning in 2026, the income percentage used here is 9.96%. Enter the annual premium the employee would pay for the relevant lowest-cost offer, not the employer’s full premium. Family-member affordability must be considered separately.

Example

For a fictional $50,000 annual household income, 9.96% is $4,980 per year. A $5,200 employee-only contribution exceeds that amount; this comparison alone does not establish tax-credit eligibility.

What to confirm before making a decision

The employer plan’s minimum value, who is eligible for the offer, family coverage and other Marketplace conditions also matter. Ask the employer for the coverage information before changing existing insurance.

Official sources

The old “family glitch” treated only the employee-only premium. Family affordability is tested on the family’s required contribution. Confirm current IRS rules before dropping employer coverage.

2026 Employer Health Coverage Affordability Test

Next: check available Marketplace plan prices

Check the cost of your job coverage