At the federal level, no. There has been no federal tax penalty for going without health insurance since 2019. The requirement to have coverage technically still exists in the law, but the fee for skipping it was reduced to zero, so the IRS will not fine you for being uninsured.
The full answer depends on where you live. A handful of states have created their own coverage requirements with real penalties. As of 2026, California, Massachusetts, New Jersey, Rhode Island, and Washington, D.C. charge a state-level fee if you go without qualifying coverage. Most states, including Oregon, do not. And even where there is no fine at all, going uninsured carries its own steep cost, since you pay full price for any care you need. Here is how it breaks down.
The Penalty Question at a Glance
| Question | Answer |
|---|---|
| Is there a federal penalty? | No, not since 2019 |
| Do any states penalize it? | Yes, five jurisdictions |
| Which ones? | California, Massachusetts, New Jersey, Rhode Island, D.C. |
| Does Oregon penalize it? | No |
| How is it reported? | On your state tax return, not your federal return |
| The bigger risk? | Paying full price for medical care |
Why There’s No Federal Penalty Anymore
When the Affordable Care Act first took effect, it included an individual mandate that required most people to carry health insurance or pay a federal tax penalty. The idea was to bring healthy people into the insurance pool to help keep premiums stable for everyone.
That changed with a 2017 tax law, which set the federal penalty to zero starting in 2019. The mandate technically remains on the books, but with no dollar amount attached, there is no federal consequence for being uninsured. You also no longer need to report your coverage status on your federal tax return.
Which States Penalize You for Being Uninsured?
A few states stepped in to create their own mandates after the federal penalty disappeared. If you live in one of these, you may owe a fee at state tax time unless you qualify for an exemption.
| Jurisdiction | Approximate 2026 penalty |
|---|---|
| California | The greater of about $900 per adult or 2.5% of income |
| Massachusetts | Income-based, up to roughly $180 per month |
| New Jersey | The greater of about $695 per adult or 2.5% of income |
| Rhode Island | The greater of about $695 per adult or 2.5% of income |
| Washington, D.C. | The greater of about $745 per adult or 2.5% of income |
One point worth clearing up, because many articles get it wrong. Vermont has a coverage requirement on paper but does not charge a financial penalty, so it does not belong on the list of states that fine you. These amounts are also approximate and adjust each year, so treat them as a general guide rather than an exact figure.
How State Penalties Are Calculated
The math follows a similar pattern across the mandate states. The penalty is usually the greater of a flat per-person fee or a percentage of your household income, often around 2.5 percent above a filing threshold. Children are typically charged at about half the adult rate.
There is a ceiling on it. The income-based amount is generally capped near the cost of an average bronze plan in your state, so it does not climb indefinitely. The fee is also prorated by month, and most states forgive a short coverage gap of a month or two, which is meant to accommodate job changes. You report and pay it on your state income tax return.
Is There a Penalty in Oregon?
No. Oregon does not have an individual mandate, so there is no state penalty for going without health insurance. If you live in Bend or anywhere else in the state, you will not owe a fee at tax time for being uninsured.
That said, no penalty does not mean no risk. The reason to carry coverage in Oregon is financial protection, not avoiding a fine. A single emergency room visit or unexpected diagnosis can run into the thousands, and without insurance, that bill is entirely yours. The absence of a penalty simply means the decision is a financial and medical one rather than a tax one.
Exemptions From State Penalties
Even in the states that do charge a penalty, you can often avoid it by qualifying for an exemption. These vary by state, but common ones include:
- A short coverage gap, usually under three consecutive months.
- Income low enough that coverage is considered unaffordable, often when the cheapest available plan exceeds a set percentage of your income.
- General hardship, such as homelessness, eviction, bankruptcy, or a recent disaster.
- Membership in a recognized health care sharing ministry or certain religious groups.
- Income below the state tax filing threshold.
You generally have to claim the exemption on your state tax return rather than receiving it automatically, so it pays to check your state’s specific rules.
What Counts as Coverage
If you have health insurance through most ordinary sources, you already satisfy any state mandate without thinking about it. Coverage that counts includes employer-sponsored plans, Medicaid, Medicare, and plans bought through the health insurance Marketplace.
This is why the penalty mainly affects people who are uninsured or relying on plans that are not comprehensive, such as some short-term policies. If your coverage is a standard ACA-compliant or government plan, you are in the clear.
The Bigger Cost of Going Uninsured
For the vast majority of people who live in states with no penalty, the more important question is not the fine but the exposure. Without insurance, you pay the full, undiscounted price for care, and you lose the negotiated rates that insurers arrange with providers.
Consider a simple example. Skipping coverage might feel like saving money each month, until a fall leads to a broken arm and a multi-thousand-dollar emergency room bill that lands entirely on you. Medical debt is one of the leading causes of financial hardship in the country, and that risk exists in every state, penalty or not. In that sense, the real penalty for being uninsured is the bill you face when something goes wrong.
How to Avoid a Penalty or a Coverage Gap
Staying covered is usually simpler and cheaper than the alternative. A few steps keep you protected.
- Enroll during open enrollment, which runs from November 1 to January 15 in most states.
- Use a special enrollment period if you have a qualifying life event like losing a job or moving.
- Check whether you qualify for Medicaid, called the Oregon Health Plan in Oregon, which provides free or low-cost coverage.
- Keep any gap between plans as short as possible, ideally under three months.
- If you live in a mandate state and truly cannot afford coverage, claim the appropriate exemption on your state return.
This is general information rather than tax advice, so confirm the details with your state or a tax professional if you are unsure where you stand.
Frequently Asked Questions
Is there a federal penalty for not having health insurance?
No. The federal penalty was reduced to zero starting in 2019, so the IRS does not fine you for being uninsured, and you do not report coverage on your federal return.
Which states charge a penalty for being uninsured?
As of 2026, California, Massachusetts, New Jersey, Rhode Island, and Washington, D.C. charge a penalty. Vermont requires coverage but does not impose a fine.
Does Oregon penalize you for not having insurance?
No. Oregon has no individual mandate or penalty. The only real cost of going uninsured there is paying full price for any medical care you need.
How much is the penalty in states that have one?
It is usually the greater of a flat fee of roughly $695 to $900 per adult or about 2.5 percent of income, capped near the cost of a bronze plan. Amounts are approximate and change yearly.
What if I only had a short gap in coverage?
Most mandate states forgive a short gap, typically under three consecutive months, so a brief lapse between plans usually does not trigger a penalty.
Does my job-based plan keep me from being penalized?
Yes. Employer plans, along with Medicaid, Medicare, and Marketplace plans, count as qualifying coverage and satisfy any state mandate automatically.
