2018 Penalty Amount for No Health Insurance Calculator

How to Calculate the 2018 Penalty

The 2018 penalty for not having health insurance is based on your household size and income. The penalty amount is calculated using a tiered system where the amount increases as your income rises. The penalty is applied to each household member who doesn't have qualifying health coverage.

The base penalty is $325 per household member in 2018. The income tier percentage varies based on your income level:

• 0% for income below the tax filing threshold
• 0.098% for income between the tax filing threshold and $15,000
• 1.485% for income between $15,000 and $35,000
• 2.205% for income between $35,000 and $45,000
• 2.925% for income between $45,000 and $65,000
• 3.545% for income above $65,000

For example, a single person with an income of $30,000 would be in the 1.485% income tier. The penalty would be calculated as:

Penalty Formula

The exact formula for calculating the 2018 penalty is:

Where:

• Household Size - Number of people in your household
• Income - Your total household income for the year
• Income Tier Percentage - The percentage based on your income level

The penalty is applied annually and is due with your federal income tax return. It's important to note that the penalty is only applicable if you don't have qualifying health coverage for the entire year.

Penalty Examples

Here are some examples of how the penalty is calculated for different household sizes and income levels:

Single Person

• Income: $25,000 - Penalty: $325 (0.098% × $25,000 = $24.50)
• Income: $30,000 - Penalty: $770.50 (1.485% × $30,000 = $445.50)
• Income: $40,000 - Penalty: $1,205.50 (2.205% × $40,000 = $882.50)

Family of Four

• Income: $40,000 - Penalty: $1,600 (4 × $325 = $1,300; 2.205% × $40,000 = $882.50)
• Income: $60,000 - Penalty: $2,820 (4 × $325 = $1,300; 2.925% × $60,000 = $1,755)
• Income: $80,000 - Penalty: $3,860 (4 × $325 = $1,300; 3.545% × $80,000 = $2,460)

Penalty Limits

The penalty for not having health insurance is limited to a maximum amount based on your household size:

• Single person: $325
• Family of two: $650
• Family of three: $975
• Family of four: $1,300
• Family of five: $1,625
• Family of six: $1,950
• Family of seven or more: $2,275

If your calculated penalty exceeds these limits, you will only be charged the maximum amount for your household size.

Penalty Exemptions

There are several situations where you may be exempt from the penalty:

• You had qualifying health coverage for the entire year
• You had a hardship exemption
• You were enrolled in a short coverage gap
• You were incarcerated
• You were a foster care youth
• You were a Native American tribal member

If you qualify for any of these exemptions, you will not be subject to the penalty for not having health insurance.