What Is the Penalty for Not Having Health Insurance? It Depends!

Wondering what is the penalty for not having health insurance in 2025?

You’re not alone—and the answer depends entirely on where you live. While the federal penalty was repealed in 2019, some states still enforce their own mandates, and the financial consequences can be serious if you’re uninsured.

This has left a lot of people confused.

If there’s no federal fine, why are some people still getting penalized? And how are you supposed to know what counts as “coverage”?

The truth is, you can still be fined at the state level, but you also have options that most people don’t know about.

At HSA for America, we help people every day who are trying to figure this out—young adults, freelancers, gig workers, and early retirees.

If you’re not sure where you stand, this guide is for you.

In this blog, you’ll learn:

Let’s walk through what you need to know.

Do You Still Get Fined for Not Having Health Insurance?

You might be wondering, “What is the penalty for not having health insurance if the federal fine is gone?”

From 2014 to 2018, the Affordable Care Act (ACA) included a federal mandate that required everyone to have health insurance—or pay a penalty at tax time. This was known as the tax penalty for no health insurance, and it applied nationwide.

However, in 2019, the federal repeal officially removed that mandate. So, no—you won’t get fined by the federal government anymore. However, that’s not the full story.

Several states have stepped in with their own state-level fines, and if you live in one of those states, you can still be penalized for going without insurance.

The amount and enforcement vary by location.

Here’s a quick breakdown of what this means in 2025:

If you’re unsure whether your state has a mandate, you’re not alone.

Many people are surprised when they find out they still owe a penalty for no health insurance. The next section will show you exactly which states still enforce this rule.

Here’s a helpful resource from the IRS that explains the repeal and your responsibilities at the federal level.

What States Require Health Insurance in 2025?

Some states still issue a fine for no health insurance, even though the federal penalty is gone.

If you’re living in one of these areas, you’re expected to have qualifying health coverage—or face a financial penalty at tax time. The exact rules and amounts depend on your income, family size, and how long you were uninsured during the year.

Here’s a breakdown of the six places in the U.S. that currently enforce a state-level penalty:

California

California’s penalty is based on income and family size. For 2025, the minimum fine is around $900 per adult and $450 per dependent child, unless you qualify for an exemption. The penalty may be higher for households with higher incomes.

Massachusetts

Massachusetts uses a sliding scale that adjusts based on income level. Penalties can reach up to half the cost of the cheapest available plan, and they are assessed monthly if you’re uninsured without a valid exemption.

New Jersey

New Jersey reinstated its own individual mandate in 2019. The fine is calculated using a flat rate or a higher percentage of income, which can be thousands of dollars per year for some families.

Rhode Island

Like New Jersey, Rhode Island determines the penalty using a combination of a flat dollar amount and a percentage of household income. The maximum amount is usually tied to the cost of bronze-level health plans in the state.

Vermont

Vermont requires residents to report health insurance status on their tax returns, but as of now, there’s no actual monetary penalty. However, this could change, so staying informed is still important.

District of Columbia

Washington, D.C., has one of the strictest mandates. The penalty can be up to 2.5% of household income or $695 per adult and $347.50 per child, whichever is higher.

The list may evolve, so if you live in any of these states, check the latest info from your state’s health department or tax agency.

What is the Penalty For Not Having Health Insurance and How Is It Calculated?

The penalty for no health insurance depends on your state, income, household size, and how long you were uninsured during the year.

Each state uses its own formula—some calculate a flat dollar amount, others apply a percentage of your income, and a few use a combination of both.

That means what you owe could be anywhere from a few hundred dollars to over a thousand.

Here are a few examples to give you a clearer picture:

Note: These amounts may change yearly, so always double-check with your state’s tax board.

Are There Exemptions for the Health Insurance Penalty?

Even if you don’t have insurance, you might not owe a fine—exemptions are available in many states.

These rules vary, but most states recognize certain life or financial situations where the penalty for no health insurance doesn’t apply. It’s important to know if you qualify before tax season arrives.

Here are some common exemption categories:

Each state has its own criteria and process, so always confirm the current rules on your state’s official website or tax board.

What Happens If I Don’t Have Health Insurance for One Year?

Skipping health insurance for a full year can lead to serious financial risks, especially in states enforcing penalties.

Let’s say you’re a 28-year-old freelancer living in California. You decide to go without insurance for all of 2025. At tax time, you owe an estimated $850 penalty. But things get worse—you slip and break your arm, ending up in the ER with a $5,000 medical bill.

That entire cost comes out of pocket. This is why understanding what is the penalty for not having health insurance is just part of the equation.

The real cost is what happens when something unexpected hits—and it often does.

Can a Healthshare Plan Help You Avoid a Fine?

Some states accept membership in a healthshare plan as a valid exemption from the penalty for no health insurance.

These are not insurance products—they’re nonprofit communities where members help each other with medical expenses. Instead of paying monthly premiums, you make affordable monthly contributions to share in others’ healthcare costs.

In states like California, New Jersey, and Massachusetts, recognized health sharing ministries may qualify as an exemption. But the rules vary, so verifying with your state’s tax agency is essential before relying on this option.

If you’re looking for an affordable and legal alternative to traditional insurance, a health share plan could be the right fit. You can explore your options here on our healthshare plans page.