Penalty Calculator for No Health Insurance

If you don't have health insurance in the US, you may be subject to a penalty when you file your taxes. This calculator helps you estimate your potential penalty based on your income and household size.

What is the penalty for no health insurance?

The penalty for not having health insurance is known as the "Individual Shared Responsibility Payment" (ISRP). It was introduced under the Affordable Care Act (ACA) to encourage Americans to have health coverage.

The penalty amount is based on your income and household size. It's calculated as a percentage of the national average premium for a bronze-level health plan.

In 2024, the penalty amounts are:

Individual: $2085 per year
Family of 2: $4170 per year
Family of 3: $6255 per year
Family of 4: $8340 per year

The penalty applies to individuals and families who are not enrolled in a qualifying health plan and do not qualify for an exemption.

How to calculate the penalty

The penalty is calculated using the following formula:

Penalty = (National Average Premium × Household Size) × Penalty Percentage

Where:

National Average Premium is the average cost of a bronze-level health plan
Household Size is the number of people in your household
Penalty Percentage is based on your income level

The penalty percentage varies based on your income:

Income Level	Penalty Percentage
Below 100% of the federal poverty level	0%
100% - 138% of the federal poverty level	2.5%
138% - 200% of the federal poverty level	4.0%
200% - 300% of the federal poverty level	5.5%
Above 300% of the federal poverty level	7.0%

For example, if your household size is 2 and your income is between 138% and 200% of the federal poverty level, your penalty would be:

Penalty = ($4170 × 2) × 4.0% = $333.60 per month

Who is affected by the penalty?

The penalty applies to:

Individuals who are not enrolled in a qualifying health plan
Families who are not enrolled in a qualifying health plan
People who do not qualify for an exemption

You may qualify for an exemption if you:

Have a religious objection to health insurance
Have a hardship exemption
Are enrolled in a government-sponsored health plan
Are enrolled in a health plan through your employer

If you qualify for an exemption, you won't owe the penalty.

How to avoid the penalty

There are several ways to avoid the penalty:

Enroll in a qualifying health plan through the Marketplace
Enroll in a health plan through your employer
Qualify for an exemption
Pay the penalty and file your taxes as usual

If you can't afford health insurance, you may qualify for financial assistance through the Marketplace.

Remember that the penalty is only for the year you don't have health insurance. If you enroll in a plan during the year, you may be able to get a partial credit for the months you were uninsured.

FAQ

What happens if I don't pay the penalty?

If you don't pay the penalty, you may receive a bill from the IRS. The IRS will assess the penalty and add it to your tax bill. You can pay the penalty when you file your taxes or by making a separate payment.

Can I get a refund if I pay the penalty?

No, the penalty is not refundable. Once you pay it, it's final. However, if you enroll in a qualifying health plan during the year, you may be able to get a partial credit for the months you were uninsured.

How do I know if I qualify for an exemption?

You can check if you qualify for an exemption by using the IRS's Shared Responsibility Payment Calculator or by consulting with a tax professional. Common exemptions include religious objections, hardship exemptions, and enrollment in a government-sponsored health plan.

Can I pay the penalty in installments?

Yes, you can pay the penalty in installments if you file your taxes electronically. The IRS will automatically calculate the installment amounts based on your tax liability.

What if I can't afford the penalty?

If you can't afford the penalty, you may qualify for an installment agreement with the IRS. You can request an installment agreement by filing Form 9465. You may also be eligible for financial assistance through the Marketplace if you can't afford health insurance.