Tax Facts

IRS Announces 2024 Contribution Threshold for Premium Tax Credit Eligibility Purposes

Typically, the Affordable Care Act's premium tax credit is available to taxpayers with household income that falls between 100% and 400% of the federal poverty line. For 2024, even more taxpayers may qualify for the premium tax credit because the IRS recently announced in Revenue Procedure 20239 that the affordability threshold will decrease significantly, to 8.36% in 2024 (down from 9.12% for 2023). This decrease means that many employers will be required to pay more for employee coverage in 2024 because employer-sponsored coverage will only be deemed affordable if the employee's required contribution for self-only coverage does not exceed 8.36% of the employee's household income. For more information on the premium tax credit and eligibility rules, visit Tax Facts Online. : Q 8883. Note: Q is updated.


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