Is There a Fine for Not Having Health Insurance?
The Affordable Care Act, also called ObamaCare, went into effect in 2010. In the law, there was an Individual Mandate written in, which made it a requirement for all Americans to carry a health insurance plan or else they’d be penalized by the federal government during that year’s tax season. In December 2017, the new tax legislation repealed the tax penalty so that for the year 2019, there was no federal tax penalty. However, a few states had their own Individual Mandate in place and plan to have it in place next year too.
Will I Get Fined by the State for Having No Health Insurance in 2021?
Most states have followed the lead of the federal government and only a handful of states have their own individual mandate. If you live in one of the following states, you may have to pay a tax penalty for having no health insurance in 2021:
- Massachusetts
- New Jersey
- Vermont
- California
- Rhode Island
- Washington DC
How Much Is the Individual Mandate?
According to Kaiser Health News, in 2018 the federal fine was $695 or 2.5% of your income or whichever amount was greater. There is no federal fine any longer but the states that do impose their own individual mandate have different fines. See below for each state’s specifics.
How Much Is the Individual Mandate?
New Jersey’s tax penalty went into effect in 2019. If you do not have health insurance and do not qualify for an exemption, you may have to pay a tax penalty for each month without minimum coverage.
The minimum tax penalty in NJ is $695 and the maximum is $3,012 for 2019. The tax penalty is based on household income and family size. The cap on the penalty is the cost of the average bronze health insurance plan.
For a family of 5 with a combined income of $200,000, the tax penalty is anywhere between $2,085 and $9,500.
If you are not required to file taxes in 2019, you are exempt from a fine.
