Affordability Hardship Exemption

If you or anyone in your tax household has offers of health insurance from a job or through Covered California that you cannot afford, you can apply for an affordability hardship exemption. 

Criteria

To be eligible for this exemption, your health insurance must be considered unaffordable. Affordability is calculated on the lowest-cost coverage available to you through an employer or Covered California. This coverage is considered unaffordable if your costs are more than 8.17 percent of your projected annual household income in 2023, 7.97 percent for tax year 2024 and 7.28 percent for tax year 2025.

What You Will Need to Apply

• Date of birth.

• Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN), if you have one.

• Information about any offers of job-related health coverage with supporting proof.

• Employer information.

• Expected household income with supporting proof.

Additional Information

• This exemption will only be approved for months in the future until the end of the current calendar year. For example, if you apply for an exemption in March and we approve it in April, you will have an exemption for the months of May through December. For the current calendar year, you cannot apply for this exemption after Nov. 30.

• If you want this exemption for the entire next calendar year, you need to apply at least 30 days before the end of the current calendar year.

• If you would like an exemption because your coverage was not affordable for months in the past, you may claim it on your state income tax return. 

Apply for Exemption