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The penalty for not having coverage the entire year.

Covered CA.

Dec 23, 2021

Starting in 2020, California residents must either:

Penalty Details and Exemptions
Having health coverage is the law. If you don’t have coverage, you may have to pay a penalty to the California Franchise Tax Board, unless you qualify for an exemption.
Select the links in this section to read more on this topic.

You will have to pay a penalty, the Individual Shared Responsibility Penalty, when you file your state tax return if:

You did not have health coverage
You were not eligible for an exemption from coverage for any month of the year
The penalty for no coverage is based on:

The number of people in your household
Your California state income
Use our Penalty Estimator tool to estimate the penalty you may owe.

Sample penalty amounts for 2021-2022
Household size If you make less than You may pay

Individual Making less than - $49,76 3- You pay $800

Married Couple making less than - $92,100 - You pay $1,600

Family of 4 (2 adults, 2 children) Making less than- $142,000- You pay $2,400

The penalty for a dependent child is half of what it would be for an adult, $400, for 2021.

How to estimate
The penalty will be the higher of either:

A flat amount, based on the number of people in the tax household, or
A percentage of the household income
Flat amount
Pay $800 per adult and $400 per child.

Percentage of household income
Pay 2.5% of the amount of gross income that exceeds the filing threshold requirements based on the tax filing status and number of dependents.

A family of 3 with a gross household income of $150,000 that includes:
2 parents
1 child
Flat amount calculation
$800 per adult, $400 per child: ($800 x 2) + $400 = $2,000

Percentage of household income calculation
2.5% of gross income that exceeds filing threshold: ($150,000 - $49,763 [1]) x .025) = $2,505.93.

Penalty amount
Since the percentage of household income was higher than the flat amount, the penalty amount for this family is $2,505.93.

[1] $49,763 is the state filing threshold for a married couple, both under 65 years old with one dependent for the 2021 tax year.

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