If individuals do not have health coverage, they will pay a tax penalty. The amount of the tax penalty has been phased in over a three-year period, and will be increased by cost-of-living adjustments in 2017 and beyond.

The penalty will be the higher of the following:

Per adult Per child Family maximum
$695 $347.50 $2.085 or 2.5% of taxable income above the tax filing threshold

 

If an individual's income is between 138% and 400% of the federal poverty level (FPL), they may get tax credits to help pay for health coverage. Tax credits may be available if they don't have an offer of health coverage from your employer or if your employer does not offer affordable coverage. The chart below outlines the FPL limits up to a family of five, as of 2016:

Persons in Family 2017 FPL 138% 250% 400%
1 $12,060 $16,643 $30,150 $48,240
2 $16,240 $22,411 $40,600 $64,960
3 $20,420 $28,180 $51,050 $81,680
4 $24,600 $33,948 $61,500 $98,400
5 $28,780 $39,716 $71,950 $115,120

 

Additional Resources