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Tax

Self-Employed Health Insurance Deduction Calculator

See how much your self-employed health premiums save you in taxes.

Updated June 2026 · Editorial standards

Premium details

$
$
%
Deductible amount
$12,000
Tax savings
$2,880
Net cost of coverage
$9,120

You can deduct $12,000 of health premiums, saving about $2,880 in taxes.This is an above-the-line deduction — you get it even without itemizing. After savings, your net cost of coverage is $9,120.

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the self-employed health insurance deduction calculator?

In short

Self-employed individuals can deduct 100% of their health insurance premiums as an above-the-line deduction, up to their net self-employment income. On $12,000 of premiums in the 24% bracket, the deduction saves $2,880 in taxes, cutting the net cost to $9,120.

Calculates your self-employed health insurance deduction (limited to net SE income), the tax it saves, and your net cost of coverage after the deduction.

How to use this calculator

  1. 1Enter your total annual health, dental, and qualified long-term care premiums.
  2. 2Enter your net self-employment income — the deduction can't exceed this.
  3. 3Set your marginal tax rate to estimate the savings.
  4. 4See your deductible amount, tax savings, and net cost of coverage.

The formula

deduction=min(premiums,netSE)
savings=deduction×rate
deduction = min(premiums, netSE); savings = deduction × rate; net cost = premiums − savings
premiums
— Total annual premiums paid
netSE
— Net self-employment income (deduction cap)
deduction
— min(premiums, netSE)
savings
— deduction × marginal rate

Worked example

The scenario

$12,000 premiums, $80,000 net SE income, 24% tax rate.

gives

The result

Deduction: $12,000. Tax savings: $2,880. Net cost of coverage: $9,120.

Common use cases

  • Sole proprietors and freelancers who buy their own health insurance.
  • S-corp owners and partners evaluating the premium deduction.
  • Estimating the true after-tax cost of self-employed health coverage.

Limitations & assumptions

  • The deduction cannot exceed your net self-employment income for the year.
  • You can't claim it for any month you were eligible for an employer (or spouse's employer) plan.
  • It reduces income tax but not self-employment tax.

Frequently asked questions

Yes — you can deduct 100% of premiums for medical, dental, and qualified long-term care insurance for yourself, your spouse, and dependents, as an above-the-line deduction.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.