The short answer
No, not at the federal level. HealthCare.gov says plainly that "the fee for not having health insurance no longer applies," so you no longer pay a federal tax penalty for going without coverage. Here in Texas there's no state penalty either. A few places do still have their own, though, and skipping coverage can still cost you in ways that have nothing to do with taxes. You can read the government's own wording on the HealthCare.gov page about the fee for not being covered.
What happened to the federal penalty
When the Affordable Care Act first rolled out, people who went without qualifying coverage paid a fee when they filed their federal taxes. People called it the penalty, the fine or the individual mandate. HealthCare.gov's glossary says that fee applied for plan years 2018 and earlier.
Starting with 2019, the federal fee went away. So if you're filing your taxes as a self-employed person, there's no box where the IRS charges you for being uninsured.
Where a state penalty still applies
Some states chose to keep a requirement of their own. According to healthinsurance.org's guide to the uninsured penalty, updated July 2026, New Jersey, DC, Massachusetts, California and Rhode Island have penalties for being uninsured. Those are collected through state tax returns.
Texas isn't on that list. If you live and work here, you won't owe a state fee for going without coverage. If you split your year between Texas and one of those places, or you're thinking about moving, it's worth checking that state's rules before you file.
Why no penalty doesn't mean no risk
I talk with a lot of self-employed folks who heard the penalty is gone and figured coverage was optional. Legally, in Texas, it is. But the penalty was never the real cost of being uninsured. A surprise hospital bill is.
When you work for yourself, there's no employer plan to fall back on. One bad fall off a ladder or one bad diagnosis can land on you and your business at the same time. That's the part I'd want you thinking about, more than any tax form.
Timing still matters
Even without a penalty, you can't sign up for a Marketplace plan any day you like. Open Enrollment runs from November 1 through January 15, and you need to enroll by December 15 for coverage that starts January 1. I put the key Open Enrollment dates for self-employed people in one place so they're easy to find.
When you do compare plans, the two numbers that tell you the most about your risk are the deductible and the out-of-pocket maximum. My post on deductible vs out-of-pocket maximum explains both in plain words.
FAQ
Is there a federal penalty for not having health insurance?
No. HealthCare.gov says the fee for not having health insurance no longer applies. It was charged for plan years 2018 and earlier.
Does Texas have a penalty for not having health insurance?
No. Texas does not have its own individual mandate or penalty.
Which states still have a penalty for being uninsured?
According to healthinsurance.org, New Jersey, DC, Massachusetts, California and Rhode Island have penalties, collected through state tax returns.
Will I owe anything on my federal tax return for going without coverage?
No federal fee applies for being uninsured. If you live in one of the states that has its own penalty, you could owe it on your state return.
If there's no penalty, can I buy a Marketplace plan any time?
Generally you enroll during Open Enrollment, which runs November 1 through January 15. Enroll by December 15 for coverage that starts January 1.