Is There a Penalty for Not Having Health Insurance in 2027?
Not from the IRS, but five places still charge one. California, Massachusetts, New Jersey, Rhode Island and Washington, DC add a penalty to your state tax bill if you go without qualifying coverage. Here's each state's rule, the latest penalty amounts, the exemptions and the 2027 enrollment deadlines.
See the Rules by State ↓Do You Have to Have Health Insurance in 2027?
Quick answer (as of Oct 28, 2026): There's no federal penalty for not having health insurance in 2027. The IRS reduced the federal shared responsibility payment to zero starting with tax year 2019. But California, Massachusetts, New Jersey, Rhode Island and the District of Columbia require residents to have qualifying coverage and charge a penalty on the state tax return if they don't, unless an exemption applies. Vermont requires coverage but charges no penalty. No other state requires coverage. FreedInsure, an independent insurance agency, can help New Jersey residents enroll in a 2027 GetCoveredNJ plan and offers Marketplace plans in Georgia, New York and the HealthCare.gov states where its agent is licensed.
A state health insurance penalty is figured month by month. If you, your spouse or a dependent on your tax return goes without qualifying coverage for a month and no exemption applies, that month can add to the penalty. In Massachusetts, the penalty applies only to adults. A 2027 penalty shows up on the 2027 state tax return you file in 2028. States publish their 2027 amounts on their own schedules, so the figures below are the latest each state has published.
Going without health insurance isn't a crime in any state. In the five penalty states, the law requires coverage, and the consequence is a tax penalty, not a criminal charge. In every other state, including Indiana, Florida and Texas, you won't owe a state or federal tax penalty for being uninsured. You could still owe the full cost of any care you get, and once Open Enrollment ends, you generally can't buy a Marketplace plan without a Special Enrollment Period.
FreedInsure is a private insurance agency, not the Marketplace, a state tax agency or a government agency. This page explains the rules; it isn't tax advice. For your own penalty amount, use your state's tax forms or calculator, or ask a tax professional.
Last updated: October 28, 2026
Which States Have a Health Insurance Penalty?
Five places charge a penalty for going without health insurance: California, Massachusetts, New Jersey, Rhode Island and the District of Columbia. Vermont requires coverage but has no penalty. Each state sets its own amounts and changes them every year, so the table shows the latest tax year each state has published.
| State | Latest penalty for a full year uninsured | Tax form | Where to enroll for 2027 |
|---|---|---|---|
| California | Tax year 2025: the higher of $950 per adult and $475 per child (up to $2,850 per household) or 2.5% of household income above the state filing threshold, capped at the state average bronze plan premium | FTB 3853, filed with Form 540 | Covered California (FreedInsure doesn't sell Covered California plans) |
| Massachusetts | Tax year 2026: per adult, $312 a year at 150.1% to 200% of the poverty level, rising to $2,532 a year above 400%; no penalty at or below 150% | Schedule HC, filed with your Massachusetts return | Massachusetts Health Connector (our agent isn't licensed in Massachusetts) |
| New Jersey | Tax year 2025: a minimum of $695 and a maximum of $4,908 for an individual, based on income and family size, capped at the statewide average bronze plan premium | Form NJ-1040 (exemptions on Schedule NJ-HCC) | GetCoveredNJ, on your own or with FreedInsure's licensed agent |
| Rhode Island | Tax year 2025: the higher of $695 per adult and $347.50 per child (up to $2,085 per household) or 2.5% of income above the filing threshold, capped at the average bronze plan premium | Form IND-HEALTH and Shared Responsibility Worksheet, filed with Form RI-1040 | HealthSource RI (our agent isn't licensed in Rhode Island) |
| District of Columbia | Tax year 2025: the higher of $795 per adult and $397.50 per child (up to $2,385 per family) or 2.5% of income above the filing threshold, capped at the average bronze plan premium in DC | Schedule HSR, filed with Form D-40 | DC Health Link (FreedInsure doesn't sell Marketplace plans in DC) |
| Vermont | No penalty. State law requires coverage and asks you to report it on your Vermont tax return. | Vermont income tax return | Vermont Health Connect (our agent isn't licensed in Vermont) |
| All other states | No state requirement and no penalty. The federal penalty has been zero since 2019. | None | HealthCare.gov or your state's exchange. FreedInsure sells Marketplace plans in the HealthCare.gov states where its agent is licensed, plus Georgia and New York. |
Sources: California Franchise Tax Board, Massachusetts Department of Revenue (TIR 26-1), New Jersey Division of Taxation, Rhode Island Division of Taxation, DC Office of Tax and Revenue and Vermont statutes (32 V.S.A. chapter 244). Links are in the sources list at the end of this page.
How Much Is the Penalty in Each State?
California, New Jersey, Rhode Island and DC use a formula modeled on the old federal penalty: a flat amount per person or a share of income above the filing threshold, whichever is higher, with a cap tied to the average bronze plan premium. Massachusetts uses its own income-based schedule.
California
Since January 1, 2020, California residents must have qualifying coverage, get an exemption or pay a penalty when they file their state tax return, according to the Franchise Tax Board (FTB). For tax year 2025 (returns filed in 2026), the penalty is the higher of $950 per adult and $475 per dependent child (up to $2,850 per household) or 2.5% of household income above the state filing threshold. It's capped at the state average bronze plan premium, which the 2025 FTB 3853 instructions list as $377 a month per person. FTB's own example: a married couple with one child and $200,000 of income would owe $3,457 for a year without coverage.
You report coverage and claim exemptions on form FTB 3853. Exemptions claimed on the tax return include income below the filing threshold, coverage that cost more than 7.28% of household income in 2025, a short gap of three consecutive months or less, and membership in a health care sharing ministry. Hardship and some affordability exemptions are granted by Covered California. FreedInsure doesn't sell Covered California plans; apply at coveredca.com. See our California health insurance guide for state subsidies and dates.
Massachusetts
Massachusetts law requires most adults 18 and over who can afford health insurance to have it, in a plan that meets the state's minimum creditable coverage standards. The penalty applies only to adults the Health Connector's affordability rules say could afford coverage, and there's no penalty for a gap of 63 days or less (the Health Connector treats this as three calendar months). The tax year 2026 schedule from the Department of Revenue (TIR 26-1), per adult:
| Income (share of the poverty level) | Per month | Full year |
|---|---|---|
| 150% or less ($23,475 or less for one person) | None | None |
| 150.1% to 200% | $26 | $312 |
| 200.1% to 250% | $51 | $612 |
| 250.1% to 300% | $76 | $912 |
| 300.1% to 400% | $117 | $1,404 |
| Above 400% (above $62,600 for one person) | $211 | $2,532 |
A married couple's penalty is the sum of each spouse's penalty. You report coverage on Schedule HC, and you can appeal to the Health Connector if a hardship kept you from buying insurance. FreedInsure's agent isn't licensed in Massachusetts, so we can't sell you a plan there. Enroll through the Health Connector: its Open Enrollment for 2027 coverage runs October 23, 2026 to January 23, 2027, and you must enroll by December 23, 2026 for coverage that starts January 1.
New Jersey
The New Jersey Health Insurance Market Preservation Act requires most residents to have minimum essential coverage, qualify for an exemption, or make a Shared Responsibility Payment on their New Jersey income tax return. For tax year 2025, the Division of Taxation lists an individual's payment as a minimum of $695 and a maximum of $4,908. The amount depends on income and family size and is capped at the statewide average annual premium for bronze plans. Treasury has a calculator for 2025 and an estimator for 2026.
If you aren't required to file a New Jersey income tax return, you're automatically exempt. Other exemptions include a gap of less than three months, coverage that isn't affordable, household income at or below 138% of the poverty level, and hardship. You claim them with the Division of Taxation's coverage exemption application and report them on Schedule NJ-HCC with Form NJ-1040. New Jersey is the one penalty state where FreedInsure sells Marketplace plans. Our licensed agent can help you compare and enroll in a 2027 GetCoveredNJ plan, with any federal tax credit and NJ Health Plan Savings you qualify for. GetCoveredNJ's Open Enrollment runs November 1 to January 31; enroll by December 31 for coverage that starts January 1. More in our New Jersey health insurance guide.
Rhode Island
Rhode Island's mandate took effect January 1, 2020. For tax year 2025, the penalty is the higher of $695 per adult and $347.50 per child under 18 (up to $2,085 per household) or 2.5% of modified adjusted gross income above the filing threshold. It can't be more than the average bronze plan premium, which HealthSource RI set at $357 a month per person for 2025. You file Form IND-HEALTH and the Shared Responsibility Worksheet with Form RI-1040 if anyone in your household lacked coverage for part of the year.
Exemptions claimed on the return include income below the filing threshold, coverage that cost more than 7.28% of household income, and a gap of less than three consecutive months. Hardship exemptions are granted by HealthSource RI. FreedInsure's agent isn't licensed in Rhode Island; enroll through HealthSource RI, whose Open Enrollment for 2027 coverage starts November 1, 2026.
District of Columbia
DC requires residents to have qualifying coverage, get an exemption, or pay a shared responsibility payment on their DC income tax return. For tax year 2025, the 2025 Schedule HSR sets the flat amount at $795 per adult and $397.50 per child under 18 (up to $2,385 per family). If 2.5% of income above the DC filing threshold is higher, you pay that instead, up to a cap based on the average bronze plan premium on DC Health Link. You report coverage, claim exemptions and figure any payment on Schedule HSR with Form D-40.
FreedInsure doesn't sell Marketplace plans in DC. We can help DC residents with life and supplemental insurance only. For 2027 health coverage, enroll through DC Health Link, whose Open Enrollment starts November 1, 2026. See our DC health insurance guide.
Vermont
Vermont law (32 V.S.A. § 10452) requires residents to have minimum essential coverage, and § 10453 asks you to report on your Vermont tax return whether you had coverage each month. The law doesn't charge a penalty. FreedInsure's agent isn't licensed in Vermont; use Vermont Health Connect.
Every other state
No other state requires health insurance or charges a penalty, and the federal penalty has been zero since tax year 2019. That includes Indiana, Florida, Texas, Georgia and New York. If you live in one of these states and want 2027 coverage, see what's available in our 2027 Open Enrollment guide.
How to Avoid a Health Insurance Penalty in 2027
To avoid a 2027 state penalty, have qualifying coverage for every month of 2027, or qualify for an exemption for the months you don't. Marketplace plans, job-based plans, Medicare, and most Medicaid and CHIP coverage count as minimum essential coverage. In Massachusetts, the plan must also meet the state's minimum creditable coverage standards.
Enroll by your state's December deadline
Coverage that starts January 1 leaves no gap. These are the 2027 Open Enrollment dates:
| Where you live | Enroll by, for January 1 coverage | Open Enrollment ends |
|---|---|---|
| HealthCare.gov states | December 15, 2026 | January 15, 2027 |
| New Jersey (GetCoveredNJ) | December 31, 2026 | January 31, 2027 |
| California (Covered California) | December 31, 2026 | January 31, 2027 |
| Massachusetts (Health Connector) | December 23, 2026 | January 23, 2027 |
| Rhode Island and DC | Open Enrollment starts November 1, 2026. Check HealthSource RI or DC Health Link for the 2027 deadlines. | |
If you enroll in January instead, your plan usually starts February 1, which leaves January uncovered. A one-month gap often falls under the short-gap exemption, but not always. Short-gap rules count consecutive months, and in New Jersey, for example, months you were uninsured at the end of 2026 count toward the gap for 2027. Most states also allow the exemption for only one gap a year. Enrolling by the December deadline is the safest way to avoid a 2027 penalty. Months already behind you in 2026 can still count toward a 2026 penalty on the return you file in 2027.
What doesn't count as coverage
The IRS says minimum essential coverage doesn't include plans that provide only limited benefits, such as stand-alone dental or vision plans or coverage limited to a specific disease. Short-term health insurance isn't ACA coverage either. If you're thinking about any plan sold outside the Marketplace, ask in writing whether it counts as minimum essential coverage in your state before you rely on it to avoid a penalty.
Lower the cost of coverage
Marketplace tax credits are based on your expected 2027 income. Check where you fall with our 2027 ACA income limits chart and estimate your credit with the 2027 ACA subsidy calculator. Under current law there's no federal tax credit above 400% of the poverty level for 2027. California and New Jersey also offer state subsidies to some residents. If you lose coverage during the year, a qualifying life event can open a Special Enrollment Period so you can avoid a longer gap.
Who Is Exempt From a State Health Insurance Penalty?
Every penalty state has exemptions, and the most common ones are similar. The exact list, and whether you claim an exemption on your tax return or apply to the state exchange, depends on your state.
💰 Low Income
Income below the state's tax filing threshold is exempt in California, Rhode Island and DC. In New Jersey, you're exempt if you don't have to file a state return. In Massachusetts, there's no penalty at or below 150% of the poverty level.
⏳ Short Coverage Gap
A short gap is exempt: three consecutive months or less in California, less than three months in New Jersey, Rhode Island and DC, and 63 days or less in Massachusetts. Longer gaps don't qualify.
💸 Coverage Not Affordable
If the cheapest coverage available to you costs more than a set share of your income, you may be exempt. California and Rhode Island used 7.28% of household income for 2025. Massachusetts uses its own affordability schedule.
📝 Hardship
Hardship exemptions, such as eviction or a utility shut-off notice, are usually granted by the state exchange: Covered California, HealthSource RI or DC Health Link. In Massachusetts, you appeal to the Health Connector.
Other exemptions can include membership in a health care sharing ministry, membership in a federally recognized tribe, incarceration and time spent living outside the state. Check your state's tax instructions, listed in the sources below, for the full list.
How FreedInsure Can Help
FreedInsure LLC is an independent insurance agency. Its licensed agent is Constantino Lardi (NPN 20230457), who is licensed in 42 jurisdictions (41 states + DC). He isn't licensed in Colorado, Connecticut, Idaho, Massachusetts, Minnesota, New Mexico, Rhode Island, Vermont or Washington. For 2027, we sell Marketplace plans in the HealthCare.gov states where he's licensed and through three state exchanges: GetCoveredNJ, Georgia Access and NY State of Health.
| State | 2027 Marketplace plans through FreedInsure? |
|---|---|
| New Jersey | Yes, through GetCoveredNJ |
| California | No. Apply at Covered California. We can help with supplemental and life insurance. |
| District of Columbia | No. Apply at DC Health Link. We can help with life and supplemental insurance only. |
| Massachusetts, Rhode Island, Vermont | No. Our agent isn't licensed there. Use your state's exchange. |
🔒 Independent Agency
We compare plans from 14+ carriers, not just one, and we'll tell you if a plan from your state's exchange or Medicaid fits you better.
💰 No Fee to You
FreedInsure is paid by the insurance companies whose plans we sell; you don't pay us a fee. Marketplace prices are the same with or without us.
📞 Questions? Call Us
Call (844) 788-3733 to talk with a licensed agent. Two of our team members speak Spanish.
📋 Check Us First
Look up Constantino Lardi's NPN, 20230457, in your state's license lookup. His state licenses are listed on our licenses page.
Frequently Asked Questions
Talk to a Licensed Agent About 2027 Coverage
A licensed agent will compare 2027 plans with you. Marketplace plans are available through FreedInsure in New Jersey, New York, Georgia and the HealthCare.gov states where our agent is licensed, not in California, Massachusetts, Rhode Island, Vermont or DC. No fee to you, no obligation. Prefer to talk now? Call (844) 788-3733. Two of our team members speak Spanish.
Official Sources
- IRS: Questions and answers on the individual shared responsibility provision
- HealthCare.gov: Fee (the federal fee no longer applies)
- California Franchise Tax Board: Health care mandate (2025 penalty amounts)
- California Franchise Tax Board: 2025 FTB 3853 instructions
- Massachusetts DOR: TIR 26-1, individual mandate penalties for tax year 2026
- Mass.gov: 2027 Health Connector Open Enrollment dates
- New Jersey Treasury: Shared Responsibility Payment
- New Jersey Treasury: Claim exemptions
- Rhode Island Division of Taxation: 2025 Form IND-HEALTH instructions
- HealthSource RI: Rhode Island health insurance mandate
- DC Office of Tax and Revenue: 2025 Schedule HSR
- Vermont Statutes: 32 V.S.A. chapter 244
- Covered California: Open enrollment and GetCoveredNJ
Keep Going
Avoid a 2027 Penalty. Get Covered by Your Deadline.
Licensed agent. No fee to you. Marketplace plans in New Jersey, New York, Georgia and the HealthCare.gov states where our agent is licensed. Two of our team members speak Spanish.
Talk to a Licensed Agent → Call (844) 788-3733