individual shared responsibility payment

What is an individual shared responsibility payment?

Beginning in 2019, the individual shared responsibility payment (also known as the “individual mandate tax” or “tax penalty”) was repealed. That means you are not subject to a financial penalty for not obtaining ACA-qualifying minimum essential coverage beginning for plan year 2019 and later. If you went longer than 3 months without ACA-qualifying coverage prior to 2019 and did not obtain an exemption, you are still subject to the individual shared responsibility payment for that period of time.

From 2014 to 2019, individuals that did not comply with the individual mandate for at least 9 consecutive months out of the year were subject to this tax penalty, which was either a set amount or 2.5% of your household income, whichever value was greater (the fee rose with inflation).