Short answer: if you are self-employed in Georgia with a profit, you can deduct the health insurance you pay for yourself, your spouse, your dependents and children under 27, on Form 7206 and Schedule 1, line 17. Three limits apply: no month you could join an employer plan (yours or your spouse’s), no more than the business’s profit, and no cut to self-employment tax. Georgia starts from federal adjusted gross income, so the deduction also lowers your Georgia tax, at the flat 4.99% rate for 2026. (Reviewed November 2026 by Daniel Griffin, licensed independent advisor, NPN #22052447. Not tax advice; confirm with your tax preparer.)
- $9,751a year of Anthem’s lowest-cost 2027 Silver plan for a 40-year-old in Atlanta, all deductible
- $63,840the 2027 subsidy line for one person in Georgia; the deduction can pull your income under it
- Line 17of Schedule 1, where a Georgia contractor, consultant or LLC owner claims it
- $487of Georgia tax saved on a year of the typical plan at 4.99%
Who Qualifies in Georgia
- You have a net profit as a sole proprietor or single-member LLC (Schedule C or F), or self-employment earnings as a partner.
- The plan is under your business. For a sole proprietor, a policy in your own name counts, from the Georgia marketplace or a private plan.
- No employer plan was open to you that month, through your own job or your spouse’s, even one you turned down.
- The people covered are you, your spouse, your dependents, or a child under 27 at the end of the year.
Own an S corporation? The company has to pay the premiums and put them on your W-2: see the S-corp health insurance deduction in Georgia.
The Three Limits
- The spouse ruleAny month your spouse’s employer offers you a subsidized plan is out, even if you never enrolled. Count the months carefully when a spouse changes jobs.
- The profit capNo more than the business earned after the deductible half of self-employment tax and your SEP, SIMPLE or solo 401(k) contributions. The cheapest Atlanta metro Silver plan at 40, $9,751 a year, needs at least that much left.
- Not for SE taxIt lowers income tax only. On $72,000 of profit, self-employment tax is still about $10,173 either way.
Work out your deduction
Form 7206-style worksheet. An estimate, not a tax return.Presets: Anthem’s lowest-cost 2027 Silver plan in Atlanta. Schedule SE rates and the $192,300 wage base; Line 11 counts no other income. Nothing you type leaves this page until you send it.
The Deduction and the Georgia Subsidy Line
For 2027 coverage there is no premium tax credit above 400% of the poverty line: $63,840 for one person, $132,000 for a family of four. The self-employed health insurance deduction comes off before that test, so it can move you to the right side of the line.
A single 40-year-old with $72,000 of profit pays $10,173 in self-employment tax and deducts half, $5,087. Before the health insurance deduction that leaves $66,913, over the line. Deduct a year of Anthem’s lowest-cost Silver plan in Atlanta, $9,751, and the figure drops to $57,163, $6,677 under it.
Then the credit lowers the premium you pay, which lowers the deduction. IRS Publication 974 has the method that settles both numbers together; a licensed agent or your tax preparer can run it before you pick a plan.
What It Is Worth in Georgia for 2027
| Household | Per month | Deductible per year | Federal tax saved at 22% | At 24% | Plus Georgia tax at 4.99% |
|---|---|---|---|---|---|
| One adult, 40 | $813 | $9,751 | $2,145 | $2,340 | $487 |
| Two adults, 40, and two children | $2,598 | $31,174 | $6,858 | $7,482 | $1,556 |
Georgia starts from federal adjusted gross income (Form 500, line 8) and taxes it at a flat 4.99% for 2026, the rate the Department of Revenue lists, so the deduction lowers your Georgia tax too. Georgia runs its own marketplace, Georgia Access, so the federal plan file behind the other states’ numbers on this site does not cover it. The prices here are Anthem Blue Cross and Blue Shield’s 2027 rates by rating area, one of several insurers on Georgia Access.
Bronze, Silver and Gold in Georgia
| Where | Lowest Bronze | Lowest Silver | Lowest Gold | Gold against Silver |
|---|---|---|---|---|
| Atlanta metro | $594 | $813 | – | no Gold filed |
| Savannah (Chatham County) | $562 | $769 | – | no Gold filed |
| Augusta (Richmond County) | $728 | $959 | – | no Gold filed |
| Columbus (Muscogee County) | $569 | $779 | – | no Gold filed |
| Macon (Bibb County) | $515 | $745 | – | no Gold filed |
Anthem’s 2027 filing for Georgia has no Gold plan in these areas, so its choice is Bronze or Silver; other insurers on the marketplace may sell Gold, and a Bronze plan is HSA-qualified since 2026 (IRS Notice 2026-05).
Georgia Business Taxes When You Work for Yourself
Georgia starts from federal adjusted gross income, so the self-employed health insurance deduction carries through to Form 500 and comes off income taxed at a flat 4.99% for 2026.
Want the plan and the deduction worked out together?
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How to Claim It
- Keep the recordsPremium statements for each month, and any marketplace Form 1095-A.
- Count the monthsLeave out any month an employer plan was open to you or your spouse.
- Form 7206A year of the Atlanta metro plan, $9,751, capped at your profit after half of SE tax and retirement savings.
- Schedule 1Line 17: the result comes off your income on Form 1040.
Before the year closes: the year-end checklist, every date in order. Tax professionals with Georgia clients: a printable one-page Georgia handout.
Common Questions
Can I deduct health insurance if I am self-employed in Georgia?
Yes, if your business has a net profit and you could not join an employer plan, yours or your spouse’s, that month. You deduct the premiums on Form 7206 and Schedule 1, line 17. Georgia starts from federal adjusted gross income, so the deduction also lowers your Georgia tax, at the flat 4.99% rate for 2026.
Can the deduction help me qualify for a premium tax credit?
It can. The deduction lowers the income tested against the 2027 subsidy line ($63,840 for one person, $132,000 for a family of four). The credit then lowers the premium you deduct, and IRS Publication 974 settles both together.
What is Georgia’s income tax rate for 2026?
A flat 4.99%, per the Department of Revenue’s tax updates page.
Sources
- IRS, Instructions for Form 7206 (2025)
- IRS, Notice 2008-1 (2-percent S corporation shareholders)
- 26 U.S. Code section 162(l)
- IRS, Publication 974 (premium tax credit)
- Georgia Department of Revenue, Important Tax Updates (2026 flat rate)
- CMS, Plan Year 2027 Qualified Health Plan Landscape file
- HHS, 2026 poverty guidelines (2027 coverage)
- Social Security Administration, 2027 fact sheet (wage base)
- Georgia Department of Revenue, Form 500 (line 8, federal adjusted gross income)
- Anthem Blue Cross and Blue Shield, 2027 individual rates by rating area (quoted October 2026)