For 2022, a job-based health plan that costs 9.61 percent or less of the employee's annual household income is considered affordable coverage.
Each year, the IRS slightly adjusts what is considered affordable employer sponsored coverage, or the “affordability threshold.” The IRS does this by comparing the annual ratio of insurance premium growth against overall national income growth.
In 2019, the affordability threshold rate was 9.78% of income. In 2021, it was 9.83% of income. Years in which insurance premium rates rise more than national income growth will see a rise in the affordability threshold rate.