2018 Penalty for No Health Insurance Calculator

Use this calculator to determine your 2018 penalty for not having health insurance. The Affordable Care Act (ACA) imposes penalties on individuals who don't have qualifying health coverage during certain months of the year.

How to Calculate the 2018 Penalty

The penalty for not having health insurance in 2018 is calculated based on your household size and income. The IRS uses a tiered system to determine the amount you owe.

Formula

Penalty = (Household Size × Monthly Penalty Amount) × 12

Where Monthly Penalty Amount is determined by your income level:

If income is below 138% of the federal poverty level, penalty is $0
If income is between 138% and 250% of the poverty level, penalty is $95 per month
If income is between 250% and 400% of the poverty level, penalty is $695 per month
If income is above 400% of the poverty level, penalty is $825 per month

The federal poverty level for 2018 was $12,140 for an individual and $24,280 for a family of four. These amounts are adjusted annually for inflation.

2018 Penalty Rules

The penalty applies to individuals who are not covered by qualifying health insurance during all months of the year when they are eligible for coverage. Here are the key rules:

You must be a U.S. citizen or resident alien
You must not be eligible for an exemption
You must not have qualifying coverage for all months of the year
The penalty applies to each month you don't have coverage
You can pay the penalty in installments if you file a tax return

Note: The penalty was repealed for 2019 and subsequent years by the Tax Cuts and Jobs Act. This calculator is provided for historical reference only.

Exemptions

You may be exempt from the penalty if you qualify for one of these reasons:

You had a hardship that made it impossible to get coverage
You were incarcerated
You were a member of a recognized religious sect that opposed insurance
You were a federal, state, or local government employee
You were a Native American on a reservation

Worked Examples

Example 1: Single Person with Income Below 138% of Poverty Level

Income: $10,000 (below 138% of $12,140 poverty level)

Household Size: 1

Monthly Penalty: $0

Annual Penalty: $0

Example 2: Family of Four with Income Between 250% and 400% of Poverty Level

Income: $40,000 (between 250% and 400% of $24,280 poverty level)

Household Size: 4

Monthly Penalty: $695

Annual Penalty: $695 × 12 = $8,340

Example 3: Individual with Income Above 400% of Poverty Level

Income: $60,000 (above 400% of $12,140 poverty level)

Household Size: 1

Monthly Penalty: $825

Annual Penalty: $825 × 12 = $9,900

Frequently Asked Questions

When was the 2018 penalty for no health insurance in effect?: The penalty was in effect for the entire 2018 calendar year. It applied to months when you were eligible for coverage but didn't have qualifying health insurance.
How do I know if I qualify for an exemption?: You may qualify for an exemption if you had a hardship, were incarcerated, belonged to a religious sect that opposed insurance, were a government employee, or were a Native American on a reservation. You must file Form 8965 to claim an exemption.
Can I pay the penalty in installments?: Yes, you can pay the penalty in installments if you file a tax return. The IRS will calculate the amount you owe each month based on your filing status and income.
What happens if I don't pay the penalty?: If you don't pay the penalty, the IRS may assess additional interest and penalties. You may also be subject to a 10% excise tax on your income for each month you didn't have coverage.
Is the penalty still in effect today?: The penalty was repealed for 2019 and subsequent years by the Tax Cuts and Jobs Act. This calculator is provided for historical reference only.