IRS Releases Adjusted Employer Shared Responsibility Payments for 2026

The Internal Revenue Service (IRS) issued Revenue Procedure 2025-26 providing the indexing adjustment for the applicable dollar amounts under § 4980H(c)(1) and (b)(1) of the Internal Revenue Code. The indexed amounts are used to calculate the employer shared responsibility payments (ESRP) under § 4980H(a) and (b)(1), respectively.

The Revenue Procedure provides that the applicable premium adjustment percentage is 1.6726771319.

For calendar year 2026:

• The adjusted amount penalty for purposes of Section 4980H(a) of the Code is $3,340 (a $440 increase from 2025). 
• The adjusted amount penalty for purposes of Section 4980H(b) of the Code is $5,010 (a $660 increase from 2025). 

The Revenue Procedure is effective for tax years and plan years beginning after December 31, 2025.