Covered California
What Covered California is, who goes to Medi-Cal instead, how California's coverage penalty is figured, and a calculator.
Covered California penalty calculator (FTB)
What Covered California is
Covered California is the state's health insurance marketplace. It's where Californians buy individual coverage with federal premium tax credits and, for some incomes, extra state help; people with income up to 138% of the poverty line are generally routed to Medi-Cal. You'll get Form 1095-A to reconcile your credit, and a state form for California's mandate.
California's health coverage penalty
California requires residents to have coverage or pay a penalty on their state return (Franchise Tax Board). The penalty is the higher of:
- a flat $950 per adult and $475 per child (2025 amounts), or
- 2.5% of household gross income above your state filing threshold.
FTB's own example: two parents and one child with $200,000 of income and a $61,720 filing threshold owe $3,457, since 2.5% × ($200,000 − $61,720) beats the $2,375 flat amount. Uncovered months are prorated in this estimate, and exemptions (such as short gaps or hardship) are claimed on Form FTB 3853; FTB's penalty estimator gives the exact figure.
Common questions
What is the California health insurance penalty?
The higher of $950 per adult and $475 per child or 2.5% of income above the filing threshold (2025).
Who qualifies for Medi-Cal instead of Covered California?
Generally people with income up to 138% of the poverty line.
What form claims a California coverage exemption?
Form FTB 3853.
Sources
More paycheck and tax calculators: Child Tax Credit · COBRA Health Insurance · Distributable Net Income (DNI) · Do You Pay Tax on Social Security
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.