Technical Information Release  TIR 26-1: Individual Mandate Penalties for Tax Year 2026

Date:	03/23/2026
Referenced Sources:	Massachusetts General Laws

Pursuant to G.L. c. 111M, § 2, the Department of Revenue is issuing this Technical Information Release to announce the penalty schedule for individuals who fail to comply in 2026 with the requirements under the Massachusetts Health Care Reform Act (the Act). See St. 2006, c. 58, as amended.  The Act requires most adults 18 and over with access to affordable health insurance to obtain it.  In 2026, individuals must be enrolled in health insurance policies that meet minimum creditable coverage standards defined in regulations adopted by the Commonwealth Health Insurance Connector Authority (the Health Connector). Individuals who are deemed able to afford health insurance but fail to comply are subject to penalties for each month of non-compliance in the tax year (provided that there is no penalty in the case of a lapse in coverage of 63 consecutive days or less).^[1]  The penalties, which will be imposed through the individual’s personal income tax return, shall not exceed 50% of the minimum monthly insurance premium for which an individual would have qualified through the Health Connector.^[2]

These penalties apply only to adults who are deemed able to afford health insurance but who did not enroll in available coverage.  On an annual basis, the Health Connector establishes separate standards that determine whether individuals, married couples and families can afford health insurance, based on their incomes and affordable health insurance premiums. Those who are not deemed able to afford health insurance pursuant to these standards will not be penalized. Individuals also have the opportunity to file appeals with the Health Connector to assert that hardship prevented them from purchasing health insurance and therefore, they should not be subject to penalties.^[3]

For 2026:

• Individuals with incomes less than or equal to 150% of the Federal Poverty Level are not subject to any penalty for non-compliance, as those at this income level are not required to pay an enrollee premium for the Health Connector’s ConnectorCare health insurance.
• Penalties for individuals with incomes from 150.1 to 400%[4] of the Federal Poverty Level will be half of the lowest priced ConnectorCare enrollee premium that could be charged to an individual at the corresponding income level, based on the ConnectorCare enrollee premiums as of January 1, 2026.
• Penalties for individuals with incomes greater than 400% of the Federal Poverty Level will be half of the lowest priced individual Bronze premium, based on the Health Connector’s prices for these plans as of January 1, 2026.

Penalties for married couples who do not comply with the individual mandate rules (with or without children) will equal the sum of individual penalties for each spouse.

Individual Income Category*	150.1-200% FPL	200.1-250% FPL	250.1-300% FPL	300.1-400% FPL	Above 400% FPL
Penalty	$26/month $312/year	$51/month $612/year	$76/month $912/year	$117/month $1,404/year	$211/month $2,532/year

* Compare individual’s annual family household income to chart immediately below to determine applicable Federal Poverty Level (FPL).

** Yearly penalty amounts listed above based on non-compliance for entire year.

Federal Poverty Level – Annual Income Standards

Household Size	150%	200%	250%	300%	400%
1	$23,475.00	$31,300.00	$39,125.00	$46,950.00	$62,600.00
2	$31,725.00	$42,300.00	$52,875.00	$63,450.00	$84,600.00
3	$39,975.00	$53,300.00	$66,625.00	$79,950.00	$106,600.00
4	$48,225.00	$64,300.00	$80,375.00	$96,450.00	$128,600.00
5	$56,475.00	$75,300.00	$94,125.00	$112,950.00	$150,600.00
6	$64,725.00	$86,300.00	$107,875.00	$129,450.00	$172,600.00
7	$72,975.00	$97,300.00	$121,625.00	$145,950.00	$194,600.00
8	$81,225.00	$108,300.00	$135,375.00	$162,450.00	$216,600.00
For each additional person, add:	$8,250.00	$11,000.00	$13,750.00	$16,500.00	$22,000.00

This schedule reflects the 2025 Federal Poverty Level standards (for 2026 eligibility).
 

                                                                                    /s/Geoffrey E. Snyder
                                                                                    Geoffrey E. Snyder
                                                                                    Commissioner of Revenue
GES:RHF:wm

March 23, 2026

TIR 26-1

[1] Note that the Health Connector interprets 63 days to mean 3 calendar months. See Administrative Information Bulletin 03-10.

[2] The monthly penalties apply to each month in which an individual lacks minimum creditable coverage (i.e., lacks health insurance coverage altogether, or lacks health insurance coverage meeting minimum creditable coverage standards). For more information regarding the health care individual mandate and minimum creditable coverage, including exceptions from the mandate and appeal rights of taxpayers in connection with the penalty under G.L. c. 111M, § 2, see Department of Revenue regulation 830 CMR 111M.2.1: Health Insurance Individual Mandate; Personal Income Tax Return Requirements, and Health Connector regulations 956 CMR 6.00: Determining Affordability for the Individual Mandate and 956 CMR 5.00: Minimum Creditable Coverage. 

[3] See Health Connector regulation 956 CMR 6.00: Determining Affordability for the Individual Mandate. The Affordability and Premium Schedules contained in the Massachusetts personal income tax forms are adopted by the Board of the Health Connector pursuant to 956 CMR 6.05.

[4] For 2026, ConnectorCare eligibility ends at 400% of the Federal Poverty Level, which is consistent with the eligibility requirements for federal Advance Premium Tax Credits (APTC).  See 956 CMR 12.00; 26 U.S. Code § 36B.