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Tax

Self-Employed Health Insurance Deduction Calculator

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

Updated July 2026 · Figures verified July 2026 (sources) · Editorial standards

Deductible health premiums
$12,000
Tax savings
$2,880
Net cost of coverage
$9,120
Marginal rate24%

Premium details

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$
%

Key figures

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.

Deductible premiums
$12,000
By KalkWiseVerified against official sources Updated July 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 your earned income (net profit minus half of SE tax).
  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
earned income = net SE profit − ½ SE tax; deduction = min(premiums, earned income); savings = deduction × rate; net cost = premiums − savings
premiums
— Total annual premiums paid
earned income
— Net SE profit − deductible half of SE tax (deduction cap)
deduction
— min(premiums, earned income)
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 earned income from the business — net profit minus the deductible half of self-employment tax (retirement-plan contributions also reduce it; not modeled).
  • 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, your dependents, and any child under age 27 at year-end — even if that child is not your dependent (§162(l)(1)(D)) — 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.