The Shared Responsibility Payment (The Penalty)

The required payment was phased in during the 2014 and 2015 tax years.

The 2016 tax year required payment is the greater of:

In 2017 and subsequent years, the $695 monthly amount will be subject to a cost-of-living increase.

The penalty is calculated based on 12 months without insurance coverage, and is based on where the individual or family stands with the poverty level and is capped for all taxpayers by the national average premium of the bronze level health plan available through the exchanges. The penalty for going without insurance may be less. The following exceptions were not included in the potential penalty displayed above:

In 2015 the flat dollar amount increased to $325 per adult and $162.50 per child (up to a maximum of $975) per month, and the percentage-of-income factor increases to 2%.

In 2016 the flat dollar amount increased to $695 per adult and $347.50 per child (up to a maximum of $2085) per month, and the percentage-of-income factor increases to 2.5%.

In 2017 and subsequent years, the $695 monthly amount will be subject to a cost-of-living increase.


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