2016 to 2018 the tax penalty for not having Health Insurance that complies with the law, is $695 a year per adult and $347.50 per child or 2.5% of income whichever is higher. IRC 5000A (Mandate PLUS?Final Regulations  Proposed Rules  Congressional Budget Office  HN Pulse 

After that there are cost of living adjustments and see chart below right. 

On the others, the penalty is ZERO for 2019.

Learn More ⇒  Kaiser Foundation

How to calculate the Penalty
if you didn’t get coverage and don’t have an exemption.

Six changes Trump can still make to ACA NPR 3.29.2017 

Get a FREE MAGI Income subsidy calculation, premium quote and compare all companies by clicking here.

Instructions on how to appoint us as your Covered CA Certified Agent – No Extra Charge.  We only get compensated when you appoint us.

Tax Penalties
Tax Penalties – Click to enlarge


New Tax Forms under Health Care Reform Publication 5187
New Tax Forms under Health Care Reform Publication 5187
Covered CA Penalty Chart
Covered CA Penalty Chart
Consumer Price Index
Consumer Price Index
shared.1 Penalty Calculation Worksheet - Publication 8965
Penalty Calculation Worksheet – Publication 8965

Resources & Links

CA Health Line 1.29.2015 6 M households could face penalties 

Be wary of tax scams  New York Times 1.31.2016

Click here to enroll in year around Agent support for your Covered CA account at no additional charge.

Analysis by TheHill.com 4.24.2015 says the penalty is too low to encourage enrollment.


Related Pages in the Mandate Section

The individual shared responsibility provision requires that you and each member of your family have qualifying health insurance, a health coverage exemption, or make a payment for any months without coverage or an exemption when you file. If you, your spouse and dependents had health insurance coverage all year, you will indicate this by simply checking a box on your tax return.



In 2015 – the tax penalty for not having Medical Coverage is about $325 a year or 2% of family income. IRC 5000A (Mandate PLUS?Final Regulations  Proposed Rules  Congressional Budget Office   The Fine Capped at  $2,448 per person and $12,240 for a family of five. HN Pulse

4 comments on “Tax Penalty 2.5% of Income Calculation Mandate

  1. I got medi-cal on Jan 2016. I made average $300 mo.

    In July I got temp job.and have grossed $25000.

    I informed medi-cal but they say I didn’t. I have netted $17000.

    I basically can’t pay rent AND have food.

    I understood Medi-cal stopped in Aug. But I think I may be wrong about that. I am getting sick with worry now that I may have to pay penalties, still be basically homeless and will have no more income beginning in Jan 2017.

    Can someone direct me to the best person to talk to or suggest something I can do now. I only signed up medi-cal because covered california said I ha d to and because of family pressure and covered california would not let me sign up with them.

    • There is no penalty and you don’t have to file taxes.

      I’m not a CPA or Tax Attorney so we will look at the IRS documents and please seek competent tax counsel. This answer is for educational purposes only.

      Take a look at IRS publication Health Coverage Exemptions and Instructions for Mandate Penalty aka shared responsiblity payment #8965 page 3, the first exemption is if your income is below the filing threshold. See page 18 for the filing thresholds. Married filing jointly under age 65 is $20,600. On page 6 part two, here’s an excerpt that says you don’t have to do anything:

      If you aren’t required to file a tax return and don’t wish to file a return, your tax household is exempt from the shared responsibility payment and you don’t need to file a return or do anything else to claim the coverage exemption.

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