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Home › Self-Employed Health Insurance Calculator
Free 1099 ToolWhat does health insurance really cost when you are self-employed?
Your premium is not your real cost. Self-employed people can deduct health insurance above the line, and an HSA can cut taxes further. Enter four numbers and see your cost after tax savings, instantly. No sign-up.
Your 2026 estimate
Results update as you type. Nothing is saved or sent.
After any ACA subsidy.
After business expenses, not gross receipts.
For example, a spouse's W-2 pay.
2026 limit: $4,400 self-only, $8,750 family.
You pay in premiums
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Taxes you save
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Real cost per month
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Estimate only, not tax advice. Federal income tax only, using 2026 IRS brackets and standard deductions, the 15.3% self-employment tax with the 2026 Social Security wage base of $184,500, and a full 20% qualified business income deduction (some high earners get less). It does not include state income tax (Florida has none), retirement contributions or credits. Confirm with your tax preparer.
Access to major U.S. carriers
Carrier names are trademarks of their respective owners. Saintellus Health Advisory is an independent advisor.
How the self-employed deduction works
If you work for yourself, health insurance comes out of pre-tax dollars for income tax, just like it does for an employee, but only if you claim it.
- 1You pay the premium yourself
For you, your spouse and your dependents, on an individual or a business plan.
- 2You deduct it above the line
It goes on Schedule 1, so you get it whether or not you itemize, up to your net business profit.
- 3Your income tax drops
The saving is roughly the premium times your tax bracket. It does not reduce self-employment tax.
- 4An HSA adds a second deduction
With an HSA-qualified plan, every dollar you put in the HSA is deducted too, and it can be spent tax-free on care.
More on coverage when you work for yourself: health insurance for the self-employed and 1099 workers, and the ACA subsidy calculator if your income is under the subsidy cliff.
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Leave a Google Review →Common questions
Who can take the self-employed health insurance deduction?
Sole proprietors, single-member LLCs, partners and S-corporation owners with more than 2% of the shares can generally deduct premiums for themselves, a spouse and dependents. It is an above-the-line deduction, so you get it without itemizing. You cannot take it for any month you were eligible for a subsidized plan through your own or your spouse's employer.
Is the deduction limited?
Yes. It cannot exceed your net profit from the business, less the deductible half of self-employment tax and any self-employed retirement contributions. If the business made a small profit, only part of the premium is deductible. This calculator applies that limit.
Does it lower my self-employment tax?
No. The deduction lowers income tax only. Self-employment tax (15.3% on most of your profit) is figured before it. That is why the savings are usually smaller than people expect, and why this calculator shows the real number.
I get an ACA subsidy. What premium do I enter?
Enter what you actually pay each month after the subsidy. The deduction applies only to the part you pay yourself. The deduction and the subsidy also affect each other, because a lower income can mean a larger subsidy, so treat the result as a close estimate and confirm it with your tax preparer.
Why does Florida matter here?
Florida has no state income tax, so for Florida residents the federal savings shown here are the whole picture. In states with an income tax, the deduction usually saves a little more at the state level too.
Should I pair a high-deductible plan with an HSA?
If you are healthy and can afford the deductible, often yes. HSA contributions are deductible, grow tax-free, and come out tax-free for medical costs. For 2026 you can put in up to $4,400 with self-only coverage or $8,750 with family coverage, plus $1,000 more at 55 or older. The plan must be HSA-qualified, which means a deductible of at least $1,700 self-only or $3,400 family.
Sources: IRS Rev. Proc. 2025-32 (2026 brackets and standard deductions), IRS Rev. Proc. 2025-19 (2026 HSA limits), Social Security Administration 2026 wage base, IRS Publication 535 and Form 7206 instructions (self-employed health insurance deduction).
