What's changed — and what it means for you

New: Virginia Premium Savings for 2027

Virginia set aside $150 million to lower Marketplace premiums. Some eligible residents may pay $0 a month. Found coverage too expensive before? Check again.

Open Enrollment for 2027 coverage

Virginia's Marketplace open enrollment runs November 1, 2026 – January 29, 2027. Check Maryland Health Connection for its 2027 dates. Apply early so coverage can start January 1.

The extra federal subsidies ended

The enhanced premium tax credits expired at the end of 2025. The original ACA tax credit still exists, but many families now get less help.

Noncitizen eligibility is narrowing

Federal law changes who can get financial help and Medicaid. Some lawfully present immigrants lose help in 2026 and 2027.

Virginia

• Enhanced federal premium tax credits expired January 1, 2026. Households at or above 100% of the federal poverty level can still qualify for the regular tax credit.
• Since January 2026, people under 100% of the poverty level who can't get Medicaid because of immigration status can still buy a plan, but at full price.
• Starting October 1, 2026, most non-pregnant adults with certain immigration statuses lose full-benefit Medicaid. Citizens, green-card holders, Cuban-Haitian entrants and COFA migrants stay eligible.

Maryland

• Maryland created State Premium Assistance to replace some or all of the lost federal help for households under 400% of the poverty level. Those under 200% get the most help.
• Maryland's young-adult subsidy (ages 18–37) continues alongside it.
• Anyone who enrolled after April 1, 2026 does not receive State Premium Assistance — timing matters.

No tax on tips

Qualified tips can be deducted, up to $25,000 a year (it phases out at higher incomes). Keep tip records from your employer or POS reports.

No tax on overtime

The extra 'half' of overtime pay can be deducted — up to $12,500, or $25,000 for joint filers. Check that your W-2 shows it separately.

Extra deduction for seniors

Taxpayers 65 and older can take an additional $6,000 deduction each (it phases out at higher incomes), on top of the standard deduction.

Car loan interest

Interest on a loan for a new U.S.-assembled personal vehicle can be deducted, up to $10,000 a year. Save your loan statements.

Higher SALT cap

The cap on state and local tax deductions rose to $40,000 (about $40,400 for 2026), which can make itemizing worth it again for homeowners in any state — especially high-tax states.

Retirement contributions

401(k), IRA and SEP contributions lower taxable income. Self-employed? A SEP or Solo 401(k) can shelter far more than an IRA.