The Internal Revenue Service (IRS) has announced the affordability threshold for employer-sponsored health coverage under the Affordable Care Act (ACA) for 2026. According to Rev. Proc. 2025-25, the rate will be set at 9.96% for plan years starting January 1, 2026. This marks an increase from the previous year’s threshold of 9.02%. The adjustment is part of an annual inflation-based update and may require some employers to change employee contribution amounts in order to meet compliance requirements.
"With the issuance of Rev. Proc. 2025-25 , the IRS announced the 2026 indexing adjustment percentage for determining affordability of employer-sponsored health coverage under the Affordable Care Act (ACA). The percentage is adjusted annually for inflation and will be set at 9.96% for plan years beginning with January 1, 2026. This represents an increase from 2025’s 9.02%, which may in turn cause many employers to have to modify their employee contributions to accommodate the adjusted 2025 percentage."