The Affordable Care Act (ACA) requires most Americans to have health insurance starting in 2014. People who don’t comply have to pay a penalty, the amount of which depends on several factors, including income and family size. This Tax Policy Center calculator lets you estimate the potential ACA penalty for individuals and married couples who don’t have health insurance coverage required by the ACA. .

Certain groups are exempt from the penalty tax ( click for list).

To see what the penalties are, just enter the requested information and click "Calculate."

Input

Filing status, age, and blindness

What is your tax filing status?

Is taxpayer:    Age 65 or over? Blind?
Is spouse:      Age 65 or over? Blind?

Dependents

Enter number of dependents by age group.
2014 2015 2016
Age 17 or younger
Age 18 or older


Income

Either 1) enter 2014 income in whole dollars and annual percentage growth rate
                  OR
             2) uncheck the box and enter values in whole dollars for each year

 After 2014, increase income by percent annually.
2014 2015 2016
Adjusted gross income
Tax-exempt interest
Exempt earnings from abroad
Modified AGI of dependents

          


Estimated Tax Penalty

2014 2015 2016
Tax penalty: In dollars
                   As percentage of AGI
Factors determining the penalty
Minimum dollar amount
Penalty calculated as a percentage of income
Average premium of bronze plan

Calculating the Penalty

For 2014, the tax is the greater of a) 1.0 percent of income (net of specified deductions) or b) $95 per adult plus $47.50 per child, up to a maximum of $285 per family. However, the penalty is capped at the average cost of a bronze level health plan .

The percentage tax increases to 2 percent in 2015 and 2.5 percent in 2016 and later years. The dollar penalty rises to $325 per adult plus $162.50 per child (with a family maximum of $975) in 2015; increases to $695 per adult plus $347.50 per child (with a family maximum of $2,085) in 2016; and is indexed for inflation in subsequent years.

In each year, the penalty is capped at the national average premium for bronze level insurance plans. That average premium is projected to be:
               2014:        $3,600 per adult       plus      $1,900 per child
               2015:        $3,816 per adult       plus      $2,014 per child
               2016:        $4,045 per adult       plus      $2,135 per child


Acknowledgements

This calculator was created by Hang Nguyen and Roberton Williams of the Tax Policy Center with programming assistance from Jessica Kelly of the Urban Institute. Linda Blumberg, Matthew Buettgens, John Holahan, Genevieve Kenney, and Stephen Zuckerman of the Urban Institute’s Health Policy Center and many Tax Policy Center analysts provided helpful comments and suggestions.