The tax penalty, or individual shared responsibility payment, is the fee you pay if you don’t have health insurance. You pay the penalty when you file your federal tax return.

The fee is owed for any month you, your spouse, or your dependents do not have qualifying health coverage. The fee is calculated in two ways: as a percentage of your income and per person. You will pay whichever is higher. For 2017, the fees are:

  • 5 percent of your household income. (The maximum is the total yearly premium for the national average price of a bronze plan sold through the federal marketplace exchange.)
  • $695 per adult, and $347.50 per child under age 18. (The maximum is $2,085.)