If you drive, deliver, freelance or run your own small business, you pay for your own health insurance. But you may not have to pay the full price. Many independent workers qualify for premium tax credits that lower their monthly premium on a Marketplace plan.
The rules changed this year, so even if you’ve looked into this before, it’s worth a fresh look.
How the savings work
Premium tax credits are based on two things: your expected household income for the year and how many people are in your household. The lower your income compared to the size of your household, the more help you can get.
You can take the credit in advance, so it’s applied to your premium every month and you pay less out of pocket. When you file your taxes, the amount you received is compared to what you actually qualified for based on your real income.
What changed this year
From 2021 through 2025, extra-generous credits were available, and people at almost any income level could get some help. Those enhanced credits expired at the end of 2025 and have not been extended. That means:
- There’s an income limit again. Households above roughly four times the federal poverty level generally don’t qualify for any credit. People just over that line can see a big jump in cost, often called the “subsidy cliff.”
- Help may be smaller than it was. If you’ve had Marketplace coverage for a few years, don’t assume your price will stay the same.
Estimating income when it changes every week
This is the tricky part for gig and freelance workers. For self-employed people, income generally means what you earn after business expenses, not the total you bill or the total the apps pay out.
Starting with 2026 coverage, there’s no longer a cap on how much of your advance credit you may have to repay if your income comes in higher than you estimated. So:
- Use last year’s tax return as a starting point, then adjust for what you expect this year.
- Keep track of your business expenses. They lower the income that counts.
- If your income changes during the year, update your estimate with the Marketplace so your credit adjusts before tax time.
Other ways to save
- Cost-sharing reductions. If your income is on the lower side, a Silver plan may come with lower deductibles and copays, not just a lower premium.
- The self-employed health insurance deduction. Many self-employed people can deduct the premiums they pay, as long as they weren’t eligible for an employer-subsidized plan, including through a spouse’s job. It works together with the tax credit, so a tax professional can help you figure both.
- HSA-eligible plans. Bronze and catastrophic Marketplace plans now qualify for health savings accounts, which let you set aside money for medical costs tax-free.
How to find out if you qualify
Have a rough estimate of your yearly income, the ages of everyone who needs coverage and your ZIP code. You can check on your state’s marketplace, or talk with a licensed advisor who can walk through your numbers, compare plans and help you enroll.
Rules current as of September 2026 and may change. This isn’t tax advice. Check with a tax professional about your situation.
