Tax credits for immigrants in 2027: who still qualifies
Starting January 1, 2027, the rules change for who can get help paying for a Marketplace plan. What it means for your family and what options remain.
A federal law passed in 2025 changed who can get the tax credit that helps pay for Marketplace plans. The change takes effect January 1, 2027, so it affects this year's Open Enrollment. If you or someone in your household isn't a citizen, it's worth reviewing carefully.
Who still qualifies for the tax credit?
Starting in 2027, besides U.S. citizens and nationals, only these immigrant groups can get the tax credit and cost-sharing reductions (CSRs):
- Lawful permanent residents (green card holders).
- Cuban and Haitian entrants who meet the federal definition.
- Citizens of COFA nations living lawfully in the U.S. (Micronesia, the Marshall Islands and Palau).
The other requirements don't change: you need to live in the state, have income in range, and not have access to other qualifying coverage.
Who no longer qualifies?
Many lawfully present people who got help before won't have it in 2027. They include refugees and asylees who don't have a green card yet, people with Temporary Protected Status (TPS), and people on work visas, among others.
That does not mean they lose the right to buy a plan. If you're lawfully present, you can still enroll through the Marketplace, but you'd pay full price. Your agent can compare lower-cost options such as Bronze plans, off-Marketplace plans or, in some cases, state programs.
Watch out for automatic renewals. If the Marketplace can't confirm your status, it may remove your credit or your coverage. Read your renewal letter and don't ignore any document request. See which documents are used.
Mixed-status families
In many families, not everyone has the same status. The Marketplace looks at each person separately:
- U.S. citizen children can qualify for the tax credit, Medicaid or CHIP even if their parents don't.
- Immigration information is only requested for people applying for coverage. A parent who isn't applying for themselves doesn't have to give their status.
- The credit is calculated using the income of the whole tax household, including people who aren't applying.
What about Medicaid and Medicare?
The same law also limited Medicaid and CHIP (starting October 1, 2026) and Medicare eligibility to similar groups. Medicaid rules vary by state, especially for children and pregnant people. If someone in your household had Medicaid and got a notice, call us to review options.
What to do now
- Check the status of each person applying and keep their documents handy.
- Compare the cost without a tax credit against other options before December 15.
- If you have a green card application in process, tell your agent: when your status changes, you can update your application.
This guide is general information, not legal or immigration advice. For questions about your immigration case, talk to an immigration attorney or an accredited organization.
Want to go over your situation privately? Get a quote and an agent will call you in English or Spanish.
Sources
- CMS: Noncitizen eligibility for APTC and CSRs, plan year 2027
- KFF: Immigrant eligibility restrictions for ACA Marketplace subsidies
- HealthCare.gov: Coverage for lawfully present immigrants
This guide is general information, not tax or legal advice. Rules and dates can change; confirm details for your state with your agent or the official source.