Is there a tax penalty if I don't have insurance? How much will I pay?

California and a handful of other states (more information on these "other states" below) have an individual mandate requiring folks to have health coverage throughout the year or pay a tax penalty. However, there is no federal nationwide mandate.

• In California, the penalty is at least $950 for adults and $475 for dependent children under 18, which would be paid on their state income tax return for the 2026 tax year in 2027.

California is not alone in reinstating the individual mandate. For state tax purposes these states have also chosen to enforce a penalty for not having qualifying health insurance. 

• State Taxes: These 5 states and the District of Columbia have kept the individual mandate and have reinstated penalties similar to the Affordable Care Act (ACA). This fee is paid when you file your state taxes. 
  • California
  • District of Columbia
  • Massachusetts 
  • New Jersey
  • Rhode Island
  • Vermont

Nationwide, there is currently no federal tax penalty to pay for not having insurance. 

The fines are pro-rated, meaning that if you are uninsured for just part of the year, you will have to pay 1/12^th of the penalty for each month you are uninsured.

There is also a grace period: If you are uninsured for less than two consecutive months of any year, you won’t have to pay a fine and may qualify for an exemption.

For states with a penalty, it is very important to note that paying the penalty does not mean you have health insurance coverage. You will still be responsible for 100% of the costs of your medical care.

If you are ready to get insured, great! Click here.