What is the tax penalty for not having health insurance?

Learn about the Affordable Care Act tax penalty.

What you need to know

Previously, the Affordable Care Act put a fee in place for individuals and families who do not have qualifying health coverage for more than three or more consecutive months out of the year. This fee is called the health insurance mandate. The fee was calculated in one of two ways:

  1. As a percentage of your household income. You will owe 2.5% of your household income, with the maximum fee equaling the average total yearly premium of a Bronze plan sold through the Marketplace in your area.
  2. Per person. You will owe $695 per adult and $347.50 per child under 18. The maximum fee is $2,085. You'll pay the higher of the two fees. You will calculate and pay your fee on your federal tax return for the year in which you don't have coverage.

However, the tax penalty no longer applies for 2019 health insurance plans.

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