Small Business Health Care Tax Credit

What are Small Business Health Care Tax Credits?

Small Business Health Care Tax Credits provide a tax credit of up to 50% of small-business health insurance premium costs, for up to two years. Employers are eligible if they have fewer than 25 full-time equivalent (FTE) workers and average annual wages less than $68,200 in 2026¹ (this is indexed for inflation each year).²

Note: The full credit is available if the employer has no more than 10 employees and average annual wages aren't more than $34,100.³ Partial tax credits (on a sliding scale) are available if the employer has up to 25 employees and average annual wages up to $68,200.¹

However, the credit is only available in areas where there are still SHOP-certified small group health plans available, and that does not include most of the country. Read more about the credit.