Is Health Insurance Tax Deductible? When You Can (and Can’t) Write Off Premiums
Written by
Ana Gotter
Edited by
Joe Evans
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Health insurance can be tax-deductible in certain situations, but most taxpayers don’t qualify. Whether you can deduct premiums depends on how you get your coverage, how you pay for it and whether you itemize deductions or qualify as self-employed.
This guide breaks down when health insurance is tax-deductible, who qualifies, which premiums count and common mistakes to avoid, using current IRS rules and plain language so you can quickly tell where you stand.
Quick Answer: Is Health Insurance Tax Deductible?
Yes — but only in specific situations.
You may be able to deduct health insurance premiums if:
- You’re self-employed, or
- You itemize deductions and your medical expenses exceed 7.5% of your adjusted gross income (AGI)
Most people with employer-sponsored insurance can’t deduct premiums, because those premiums are already paid with pre-tax dollars.
Health Insurance Tax Deduction At a Glance
| How You Get Coverage | Are Premiums Deductible? | Why |
|---|---|---|
| Employer-sponsored plan | No | Premiums are pre-tax |
| Self-employed | Yes | Above-the-line deduction |
| Marketplace plan with subsidies | Partially | Only after-tax portion |
| Retiree paying Medicare premiums | Sometimes | Must itemize or be self-employed |
When Health Insurance Premiums Are Tax Deductible
Two main pathways allow health insurance premium deductions: the self-employed health insurance deduction and the itemized medical expense deduction.
Self-Employed Health Insurance Deduction
Self-employed individuals can deduct health insurance premiums as an adjustment to income. This “above-the-line” deduction can be claimed even if you take the standard deduction.
Who qualifies:
- You have net profit from self-employment on Schedule C or F.
- You’re not eligible for health insurance through a spouse’s employer or another job.
- Premiums cover you, your spouse, dependents, or children under 27.
What premiums count:
- Medical, dental, and vision insurance.
- Qualified long-term care insurance (subject to age-based limits).
- Medicare premiums if 65 or older.
Income limitations: Your deduction cannot exceed your net self-employment income. If you earned $40,000 and paid $12,000 in premiums, you can deduct the full $12,000. If you only earned $8,000, your deduction is capped at $8,000.
Itemized Medical Expense Deductions
If you don’t qualify for the self-employed deduction, you may deduct premiums as itemized medical expenses on Schedule A.
You can only deduct medical expenses — including premiums — exceeding 7.5% of your adjusted gross income (AGI). This high threshold means many taxpayers receive no benefit.
When premiums qualify:
- You itemize instead of taking the standard deduction.
- Total medical expenses exceed 7.5% of your adjusted gross income.
- You paid premiums with after-tax dollars.
Why Many Taxpayers Don’t Benefit
- The standard deduction is high
- Most people don’t exceed the 7.5% threshold
Example:If your AGI is $80,000, the first $6,000 of medical expenses isn’t deductible.
When Health Insurance Isn’t Tax Deductible
Understanding when you cannot deduct premiums is just as important as knowing when you can.
Employer-Sponsored Health Insurance
If your premiums are deducted from your paycheck before taxes, they:
- Are already excluded from taxable income
- Can’t be deducted again
Trying to deduct them would be double-dipping, which the IRS doesn’t allow.
Marketplace Plans With Premium Tax Credits
If you receive premium tax credits (subsidies) for marketplace insurance, you can’t deduct the subsidized portion of premiums.
If you receive premium tax credits:
- You can’t deduct the subsidized portion
- Only the amount you pay out of pocket may qualify
- You must still meet itemization or self-employment rules
Premium tax credits directly reduce your monthly costs. Since you’re not paying these amounts, they don’t qualify as deductible expenses. You can only deduct the portion you pay yourself, and only if you meet other deduction requirements.
Which Health Insurance Premiums Qualify
Not all insurance premiums are treated equally for tax purposes. Let’s look at which premiums can qualify:
Individual and Family Health Plans
After-tax premiums for comprehensive health insurance may qualify if you meet eligibility rules.
Excluded policies often include:
- Accident-only coverage
- Disability insurance
- Policies covering only specific diseases
Dental and Vision Insurance
Dental and vision premiums are treated the same as medical insurance for tax purposes.
Medicare Premiums
Medicare premiums are generally tax-deductible under the same rules as other health insurance.
Part A is usually free for most people, so there’s typically nothing to deduct. If you pay premiums for Part A, those are deductible.
Parts B, C, and D all require monthly premiums that can be deducted if you qualify for the self-employed deduction or itemize and exceed the 7.5% AGI threshold.
Long-Term Care Insurance
Qualified long-term care insurance premiums are deductible, but with annual limits based on your age at the end of the tax year.
For 2025, the limits are:
- Age 40 or younger: $480
- Age 41-50: $900
- Age 51-60: $1,800
- Age 61-70: $4,810
- Age 71 and older: $6,020
These limits apply whether you’re self-employed or itemizing medical expenses. You can only deduct up to the age-based limit, even if you paid more in premiums.
Health Insurance Tax Deduction Examples
Seeing how deductions work in practice clarifies the rules.
Example for a Self-Employed Worker
Maria is a freelance graphic designer who earned $75,000 in self-employment income in 2025. She paid $12,000 in annual premiums for individual health insurance. She’s not eligible for coverage through a spouse’s employer.
Maria can deduct the full $12,000 as a self-employed health insurance deduction, reducing her AGI from $75,000 to $63,000. She can claim this even while taking the standard deduction.
Example for a Retiree
Marcus is 68 and receives $60,000 in pension and Social Security income. He pays $5,400 for Medicare Part B, $3,600 for a Medicare Supplement plan, and $1,200 for Part D. His total Medicare-related costs are $10,200.
To deduct these premiums, James must itemize and exceed $4,500 (7.5% of $60,000) in medical expenses. If his total medical expenses reach $12,000, he can deduct $7,500 ($12,000 minus $4,500).
However, if his total itemized deductions don’t exceed the $15,000 standard deduction, he’s better off taking the standard deduction and receiving no benefit from the premium payments.
How To Claim the Health Insurance Deduction
The claiming process depends on which deduction you’re taking.
For the self-employed health insurance deduction:
- Report on Schedule 1, Line 17.
- Attach Schedule 1 to Form 1040.
- Keep records of premium payments and proof you weren’t eligible for employer coverage.
- The deduction reduces your AGI.
For itemized medical expense deductions:
- Complete Schedule A.
- List all medical expenses, including premiums.
- Calculate 7.5% of your AGI and subtract it from total medical expenses.
- Only deduct the amount exceeding the threshold.
- Ensure total itemized deductions exceed the standard deduction.
If itemizing, you’ll need:
- Premium payment receipts.
- Form 1095-A, if applicable.
- Documentation of self-employment income.
- Records of other medical expenses if itemizing.
For complex situations, consulting a tax professional can ensure maximum deductions.
Common Health Insurance Tax Mistakes
Three common issues may impact those trying to deduct health insurance on their taxes.
Double-deducting pre-tax premiums is the most frequent error. If your employer deducts premiums before taxes, these amounts are excluded from your W-2 wages. Claiming them again as itemized expenses is incorrect.
Confusing credits with deductions causes problems for marketplace enrollees. Premium tax credits aren’t deductions, and you cannot deduct premium amounts covered by credits.
Missing eligible medical expenses means leaving money on the table. If you’re itemizing and paying high medical costs, track all qualified expenses, including premiums, copays, prescriptions and medical mileage.
Final Take to GO
Health insurance can be tax-deductible, but only under strict rules. Self-employed individuals benefit the most, while most employees cannot deduct premiums at all.
Before filing, confirm how your premiums are paid and whether you qualify under IRS guidelines — the difference can significantly impact your tax bill.
Is Health Insurance Tax Deductible? FAQ
- Can I deduct health insurance if I am unemployed?
- Possibly. You may deduct premiums as itemized medical expenses if you exceed the 7.5% AGI threshold.
- Are Medicare premiums tax-deductible?
- Yes, if you qualify as self-employed or itemize and exceed the medical expense threshold.
- Can I deduct health insurance and take the standard deduction?
- Only if you qualify for the self-employed health insurance deduction.
- Is dental and vision insurance deductible?
- Yes. Dental and vision premiums follow the same rules as medical insurance.
- Can I deduct employer-sponsored health insurance?
- No. Employer-sponsored premiums are typically paid with pre-tax dollars and are not deductible.
Data is accurate as of Jan. 27, 2026, and is subject to change.
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