Is It Illegal Not to Have Health Insurance?

It is not illegal to go without health insurance, and there is no longer a federal tax penalty for being uninsured. The federal penalty applied through the 2018 tax year and was reduced to $0 starting in 2019.

A few states, including California and New Jersey, have their own coverage requirement. If you live in one of these states and do not qualify for an exemption, you may owe a penalty on your state tax return for months you are not covered.

Even without a federal penalty, health coverage can be expensive. Yet your exposure to a catastrophic loss because of unforeseen medical expenses to you or one of your family members is exponentially higher.