Under the Affordable Care Act, also known as Obamacare, individuals who choose not to get health insurance through government exchanges, on their own or via their employers have to pay an additional tax.
If you do not have health insurance coverage in 2017, you’ll have to pay the higher of these two amounts:
- 2.5 percent of your yearly income above the tax-filing threshold (generally about $10,350) up to a maximum cost of the national average premium to purchase a Bronze Plan from the federal healthcare exchange. Or …
- $695 per person ($347.50 per child under 18). The maximum penalty per family using this method is $2,085.
Those costs have more than tripled from calendar year 2014 when the penalty was $95 per person or 1 percent of household income.