What is the penalty for not having health insurance?

The penalty for not having health insurance is commonly known as the individual mandate penalty. As of 2021, the penalty no longer applies at the federal level. Previously, under the Affordable Care Act (ACA), individuals who did not obtain health insurance coverage were subject to a financial penalty when filing their taxes. However, the penalty was reduced to $0 by the Tax Cuts and Jobs Act of 2017, essentially making it no longer enforceable. Keep in mind that some states may have implemented their own individual mandate, requiring residents to have health insurance or face a local penalty. Therefore, it is important to check the specific regulations in your state of residence to fully understand any potential penalties for not having health insurance.