For plan years through 2018, if you can afford health insurance but choose not to buy it, you may pay a fee called the individual Shared Responsibility Payment when you file your federal taxes. (The fee is sometimes called the "penalty," "fine," or "individual mandate.")

Starting with the 2019 plan year (for which you’ll file taxes by July 15, 2020), the Shared Responsibility Payment no longer applies.

Note: Some states have their own individual health insurance mandate, requiring you to have qualifying health coverage or pay a fee with your state taxes for the 2019 plan year. If you live in a state that requires you to have health coverage and you don’t have coverage (or an exemption):

• You’ll be charged a fee when you file your 2019 state taxes.
• You won’t owe a fee on your federal tax return.

Check with your state or tax preparer to find out if there is a fee for not having health coverage.

The fee for 2018 plans and earlier

• You may owe the fee for any month you, your spouse, or your tax dependents don't have qualifying health coverage (sometimes called "minimum essential coverage"). See all insurance types that qualify.
• You pay the fee when you file your federal tax return for the year you don’t have coverage.
• In some cases, you may qualify for a health coverage exemption from the requirement to have insurance. If you qualify, you won't have to pay the fee. Learn about health coverage exemptions.

The fee for 2019 plans and beyond

• If you don’t have coverage during 2019, the fee no longer applies. You don’t need an exemption in order to avoid the penalty.
• If you’re 30 or older and want a “Catastrophic” health plan, you may want to apply for an exemption. See details about exemptions and catastrophic coverage.

How to calculate the fee for each plan year

The fee is calculated 2 different ways — as a percentage of your yearly household income, and per person. You’ll pay whichever is higher.

• Using the percentage method, only the part of your household income that's above the yearly tax filing requirement is counted.
• Using the per person method, you pay only for people in your household who don't have insurance coverage.

If you have coverage for part of the year, the fee is 1/12 of the annual amount for each month you (or your tax dependents) don't have coverage. If you're uncovered only 1 or 2 months, you don't have to pay the fee at all. Learn about the "short gap" exemption.

For plans 2018 and earlier, you can use this IRS tool to estimate your individual responsibility payment.

More answers: If you owe a fee