What is the ACA penalty, and how is it calculated?

The ACA Individual Shared Responsibility Payment (ISRP) is often referred to as a "penalty." Taxpayers who were uninsured or have family members who were uninsured in 2016, and who do not qualify for exemptions, will have to pay the penalty.

The penalty is calculated by taking the greater of the following:

  • 2.5% of the household income above the filing threshold (up to a cap), or
  • $695 per adult and $347.50 per child (up to $2,085 per household).