Question

Is there a penalty for not having health insurance?

There’s no longer a federal penalty for going without health insurance — the ACA’s individual mandate penalty has been $0 since 2019. But a handful of states have their own coverage requirement with a penalty: California, Massachusetts, New Jersey, Rhode Island, and Washington, D.C. If you live in one of those, you may owe a state penalty at tax time without coverage or an exemption.

Reviewed by Scott Stafford, Licensed Insurance Agent

Last updated

At the federal level, the requirement to carry insurance technically still exists, but the penalty for not doing so was reduced to zero starting in 2019. So for most of the country, going uninsured carries no tax penalty — though it does leave you exposed to the full cost of any care you need, which is the more meaningful risk.

Several states have stepped in with their own mandates. California, Massachusetts, New Jersey, Rhode Island, and the District of Columbia require residents to have coverage and charge a penalty at state tax time for those who don’t, unless they qualify for an exemption. The penalty amounts and exemptions vary by state, but they’re generally tied to either a flat per-person amount or a percentage of income. If you live in one of these places, it’s worth confirming your state’s rules. Our enrollment guide can help you get covered.

Common questions

Related questions

Which states have a health insurance penalty?
California, Massachusetts, New Jersey, Rhode Island, and Washington, D.C. each have an individual mandate with a penalty. Most other states do not.
How much is the state penalty?
It varies by state, but it’s typically the greater of a flat per-person amount or a percentage of household income — often comparable to the cost of a basic plan. Exemptions are available in each state.

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