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Bill

HD 2179

An Act relative to the deduction of health insurance payments from gross income for self employed individuals

194th Legislature (2025-2026) Introduced by Bruce Ayers

Allows self-employed Massachusetts residents to deduct health insurance premiums from gross income, reducing state taxes and making coverage more affordable for independent workers.

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Bill Summary · HD 2179

Legislative bill overview

HD 2179 would allow self-employed individuals in Massachusetts to deduct health insurance payments directly from their gross income for state tax purposes. This aligns Massachusetts tax treatment with federal tax law, which already permits self-employed health insurance deductions. The bill targets a specific tax equity issue affecting sole proprietors and other self-employed workers.

Why is this important

Self-employed individuals currently bear both the employer and employee portions of health insurance costs, making coverage more expensive than for traditional employees. Allowing gross income deduction would reduce their state tax liability and make health insurance more affordable, potentially increasing coverage rates among self-employed populations. This represents meaningful financial relief for a segment of workers who lack employer-sponsored insurance benefits.

Potential points of contention

  • Revenue impact: The bill would reduce state tax revenue; fiscal analysis would clarify whether this is significant or modest
  • Scope limitations: The bill may not address other tax disparities between self-employed and traditionally employed workers, raising fairness questions about incomplete reform
  • Definition clarity: Questions may arise about which health insurance types qualify and how to verify self-employed status for compliance purposes

Compiled from official sources — confirm details with the bill’s official record.

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