Texas · Self-employed & 1099 · Plan year 2026
Health insurance when you're your own employer
No HR department, no employer paying most of the bill — the marketplace is where Texas freelancers, contractors, and business owners buy coverage. Full prices start around $320.39 a month at 40 (median $666.23) — but self-employment comes with a tax break most W-2 workers never get.
Sources: CMS Exchange Public Use Files (imported 2026-07-28) · IRS Instructions for Form 7206 (reviewed Apr 30, 2026) · methodology
What coverage costs across working ages
| Metro | Median at 30 | Median at 40 | Median at 50 |
|---|---|---|---|
| Houston (RA10) | $574.53 | $646.92 | $904.07 |
| Dallas (RA8) | $613.16 | $690.41 | $964.85 |
| Fort Worth (RA25) | $637.47 | $717.79 | $1003.11 |
| San Antonio (RA18) | $547.37 | $616.33 | $861.32 |
| Austin (RA3) | $579.33 | $652.32 | $911.61 |
| Texas statewide | $591.69 | $666.23 | $931.06 |
One non-smoking adult, all metal levels, before subsidies. Your county: lookup tool · choosing a tier: Bronze vs Silver vs Gold.
The deduction: premiums come off your taxable income
Per current IRS rules (Form 7206 and its instructions), self-employed people with a net profit can generally deduct what they paid for health coverage — medical, dental, vision, and qualified long-term care — for themselves, a spouse, dependents, and even a child under 27 who isn't a dependent. It's an "above-the-line" deduction on Schedule 1 (Form 1040), line 17: you get it whether or not you itemize.
Three rules decide whether a month counts:
- No employer plan on the table. Any month you were eligible for an employer-subsidized plan — including through a spouse's job — is excluded, even if you never enrolled.
- Profit is the ceiling. The deduction can't exceed the net earnings of the business the plan is tied to. A thin year shrinks the deduction.
- Marketplace + subsidy = special math. If you bought the plan on HealthCare.gov and take the premium tax credit, the deduction and the credit interact (IRS Pub. 974 has the calculation — worth handing to your tax preparer rather than eyeballing).
The income-estimate trap for variable earners
Your subsidy keys off the income you project for the year — a number freelancers famously can't project. Underestimate and you may owe subsidy money back at filing; overestimate and you overpay all year and reconcile at tax time. The practical habit: update your income estimate on HealthCare.gov when a big contract lands or ends, not once a year.