Yes, California law requires residents to have qualifying health insurance, or they may face a penalty when filing their state tax return, unless they qualify for an exemption. This is known as the individual mandate.
Penalty Details
The penalty is applied by the California Franchise Tax Board (FTB) and is the higher of two amounts:
- A flat amount based on household size: For the 2025 tax year, this is at least $900 per adult and $450 per dependent child under 18. A family of four would face a penalty of at least $2,700 for a full year without coverage.
- A percentage of household income: 2.5% of your gross household income over the state tax filing threshold.
You can use the FTB's Penalty Estimator Tool to determine your potential penalty.
Exemptions
Not everyone has to pay the penalty. You may qualify for an exemption if you meet certain criteria, such as:
- Your household income is below the state tax filing threshold.
- You experienced a short coverage gap of three consecutive months or less.
- The cheapest available coverage (including through your employer or Covered California) would cost more than a certain percentage of your income (7.28% for 2025).
