Short answer? Absolutely. In fact, the ACA Marketplace is often the best option for self-employed individuals to get affordable health insurance—with subsidies that scale based on your income.
Whether you're a freelancer, consultant, gig worker, or sole proprietor, here's how to qualify for ACA subsidies and make the most of them in 2026.
Are You "Self-Employed" Under ACA Rules?
The ACA considers you self-employed if you run your own business or work for yourself and do not have any employees.
You may be self-employed if you:
- Freelance or consult (1099)
- Own an LLC with no employees
- Drive for Uber, DoorDash, Instacart, etc.
- Do gig work or run an online store
If you have employees, you might need small business coverage instead.
What Income Do You Report?
ACA subsidies are based on Modified Adjusted Gross Income (MAGI). For self-employed people, this typically means:
Gross income from your business
– Business expenses (deductions)
= Net income
Then you'll add:
- Any side wages
- Taxable Social Security
- Unemployment or investment income
Use your projected income for all of 2026—not last year's taxes. For more details, check out our guide on how to estimate your income for ACA subsidies.
Real-World Example
Self-Employed Consultant
Let's say you:
- Run a consulting business that earns $70,000 gross
- Have $15,000 in legitimate business expenses
- Your net self-employment income = $55,000
- You have no other income
- Household size = 1
Your income is about 365% of the FPL, meaning you still qualify for premium tax credits.
Run Your Income Through the 2026 ACA Subsidy Calculator
See estimated monthly costs based on your self-employment income and business expenses.
Calculate Your Subsidy →How to Handle Income Changes
Self-employed income can swing month to month. Here's what to do:
- Estimate as accurately as you can using contracts, past income, or business plans
- Update your Marketplace application if your income changes significantly mid-year
- Save some subsidy buffer to avoid payback at tax time
Learn more about reporting changes in our 2026 ACA income limits guide.
Tax Tips for Self-Employed ACA Enrollees
- You can deduct your Marketplace premiums on your tax return
- This doesn't reduce your MAGI, but it reduces your taxable income
- Keep documentation of expenses, estimated income, and ACA correspondence
Final Thoughts
Self-employment comes with plenty of freedom—but also responsibility when it comes to health insurance. The good news is, you're not alone. The ACA was built to support individuals like you.
Use every tool available, estimate your income carefully, and review your coverage annually.
✅ Check How Much You Can Save with the 2026 ACA Subsidy Calculator
Get your personalized estimate based on your self-employment income. No email or signup required.
Get Your Estimate →