New Jersey is the second state after Vermont to enact an individual mandate, which becomes effective
January 1, 2019. The purpose of P.L. 2018, Chapter 31 is to stabilize the market and help keep health insurance premiums
as low as possible. The tax applies to all New Jersey residential taxpayers. Hardship exemptions shall be determined by the State Treasurer. The mandate requires individuals to maintain minimum essential coverage (MEC) or pay a penalty.
The amount of the tax penalty is the New Jersey average premium for bronze level plans, $695 or 2.5% of income, whichever is greater. “Income” is defined as household income minus any deductions.
The tax will be collected via the New Jersey income tax return.