Why Real Estate Agents Need to Find Their Own Coverage
Most real estate agents are classified as independent contractors (1099) rather than employees,
which means brokerages are typically not required to provide health insurance benefits. Even
agents affiliated with large national brands like Keller Williams, RE/MAX, Coldwell Banker,
or eXp Realty are generally responsible for their own health coverage.
This is one of the most common questions new agents ask after getting their license:
“How do I get health insurance?” The good news is that independent contractors
have solid options — and the tax advantages can make coverage more affordable than
you expect.
ACA Marketplace Plans: The Most Common Option
ACA marketplace plans are available to anyone, including independent contractors and
self-employed agents. If your net commission income falls within subsidy-eligible ranges,
you may qualify for significant premium tax credits. Because commission income can vary
year to year, it’s important to estimate your income realistically when enrolling
— not your best year and not your worst, but a realistic projection.
Real estate agents often have lumpy income — big months followed by slow ones.
Marketplace subsidies are based on annual income, so even months with no closings still
count toward your total. If your income turns out significantly different from your estimate,
you reconcile at tax time.
The Self-Employment Health Insurance Tax Deduction
Self-employed real estate agents can deduct 100% of health insurance premiums paid for
themselves and their families directly from gross income on Schedule 1 of their federal
return. This deduction is available regardless of whether you itemize. For an agent in
a 22% federal tax bracket paying $400/month in premiums, that deduction is worth about
$1,056 per year in federal tax savings alone.
This deduction applies whether you buy a marketplace plan, a private plan, or dental/vision
coverage. It does not apply if you are eligible for coverage through a spouse’s
employer plan.
Private Health Plans for Higher-Income Agents
Real estate agents who earn above the subsidy threshold (roughly $60,000+ for a single
person in 2026) may find that medically underwritten private health plans offer better
value than marketplace plans with no subsidy. These plans involve health questions and
underwriting, but for healthy individuals can provide lower premiums and broader networks
than marketplace alternatives at the same income level.
Frequently Asked Questions
Do real estate brokerages offer health insurance?
Most do not, since agents are typically classified as independent contractors. Some larger
brokerages or teams offer access to group plans as a perk, but this varies and coverage
quality differs significantly.
What health insurance options do real estate agents have?
ACA marketplace plans (with potential subsidies), private medically underwritten plans, and
association health plans through organizations like NAR (National Association of Realtors)
or state Realtor associations.
Can I deduct health insurance as a real estate agent?
Yes, if you are self-employed (1099). You can deduct 100% of premiums paid for yourself and
your family from gross income, reducing both income tax and self-employment tax liability.