How Much Is the Obamacare Tax Penalty in New York for 2024?

 

The Affordable Care Act (Obamacare) tax penalty has been set to zero, but some states have enacted their own health insurance requirements.

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There's No Federal Tax Penalty for Being Uninsured

Legally, the Affordable Care Act -- aka Obamacare -- still says that you must have health insurance. Practically speaking, however, the tax penalty for being uninsured has dropped to zero. That means you'll still have to report your coverage status on your federal tax return, but you won't have to pay a penalty if you aren't covered.

A handful of states have passed health insurance requirements to replace the federal mandate. As we approach open enrollment for 2023 health plans, those states are California, the District of Columbia, Massachusetts, New Jersey, and Rhode Island. Vermont also passed a law, but never established an active penalty to go along with it.

Even though there's no more tax penalty in most states, it's usually unwise to go uncovered. A medical crisis could do much more damage than the former penalty would have. (A study published in 2019 showed that a lapse in health insurance coverage can double a person's chances of ending up in bankruptcy.) And if you miss the upcoming open enrollment period for 2023 health plans (November 1, 2022 through January 15, 2023) and find yourself needing coverage mid-year, you may have to wait until 2024 to get it.

Learn More

To find out how to get covered, see How to Sign Up for Obamacare in New York.

For information about costs, see How Much Does Obamacare Cost in New York?.


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Jurisdictional relevance: ST

There are versions of this article for each State.



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