Individual Shared Responsibility Payment

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 is greater (the fee rises with inflation). However, the Trump administration repealed the tax penalty beginning in 2019, stripping away the financial consequence for not complying with the individual mandate.

Prior to 2019, unless individuals qualified for an exemption, they were subject to this payment, which is the greater of a percentage of household income or a flat dollar amount—the percentage and dollar amount changed annually. Also referred to as the "Obamacare tax" and "ACA penalty."