2027 Employer Mandate (§4980H) Penalties

Revenue Procedure 2026-22 updates the inflation-adjusted penalty amounts used to calculate employer shared responsibility payments (ESRPs) under the Affordable Care Act’s employer mandate provisions. For 2027, the IRS increased the annual penalty amounts to $3,780 ($3,340 in 2026) and $5,670 ($5,010 in 2026), based on healthcare premium growth data published by the Department of Health and Human Services. The adjustment is calculated using the “premium adjustment percentage,” which compares projected 2026 private health insurance premiums to 2013 baseline premiums.

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