Updated July 2026 · VirginiaPlanFinder.com — Licensed Health Insurance Producer (NPN #21249133)

Small Business Health Insurance Tax Deduction in Chesterfield County, Virginia

Self-employed individuals and small business owners in Chesterfield County can generally deduct 100% of health insurance premiums if not eligible for an employer-sponsored plan.
The Self-Employed Health Insurance Deduction reduces your Adjusted Gross Income (AGI) and is taken on Schedule 1 (Form 1040).
Small employers (under 25 full-time equivalent employees) may qualify for a tax credit of up to 50% of premiums paid when purchasing through the SHOP Marketplace.
In 2026, 6 carriers offer marketplace plans in Chesterfield County's Rating Area 3, including HMO, PPO, and EPO options.

Navigating health insurance as a small business owner or self-employed individual in Chesterfield County, Virginia, offers unique tax advantages. The primary benefit is the ability to deduct health insurance premiums, significantly reducing your taxable income. This deduction is available to individuals who are self-employed and not eligible to participate in an employer-sponsored health plan. Understanding these deductions and credits, along with the specific health plan options available in your area, is crucial for optimizing your coverage and financial planning. This guide will detail how these tax benefits work in Chesterfield County, outline your health insurance choices, and help you connect with local resources.

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Who Qualifies for the Self-Employed Health Insurance Deduction in Chesterfield County?

The Self-Employed Health Insurance Deduction allows eligible individuals to deduct 100% of the premiums paid for health insurance for themselves, their spouse, and their dependents. This deduction is taken "above the line," meaning it reduces your adjusted gross income (AGI), which can impact other tax benefits and credits. To qualify in Chesterfield County, you must meet three key criteria:

You are self-employed: This includes sole proprietors, partners in a partnership, and S corporation shareholders who own more than 2% of the company.
You are not eligible to participate in an employer-sponsored health plan: This applies to plans offered by your own employer (if you also work for another company) or your spouse's employer. If you had the option to join such a plan, you generally cannot claim this deduction.
You have net earnings from self-employment: The deduction cannot exceed your net earnings from the business under which the plan was established.

This deduction applies to various types of health insurance, including medical, dental, and long-term care insurance. For residents of Chesterfield County, this means that premiums paid for plans obtained through Marketplace Virginia (HealthCare.gov) or directly from an insurer can be deductible, provided you meet the eligibility rules.

Small Business Health Care Tax Credit for Employers in Virginia

Beyond the self-employed deduction, small employers in Chesterfield County may also qualify for the Small Business Health Care Tax Credit. This credit is designed to encourage small businesses to offer health insurance coverage to their employees. To be eligible for this credit:

You must have fewer than 25 full-time equivalent (FTE) employees.
Your average employee salary must be less than approximately $59,000 per year (this figure is indexed for inflation and subject to change).
You must pay at least 50% of the cost of employee health insurance premiums.
You must purchase coverage through the Small Business Health Options Program (SHOP) Marketplace.

The maximum credit is 50% of the premiums paid for eligible small businesses and 35% for tax-exempt organizations. This credit can significantly offset the cost of providing health benefits, making it more affordable for Chesterfield County businesses to support their workforce.

Health Insurance Options for Small Businesses and Self-Employed in Chesterfield County

Small business owners and self-employed individuals in Chesterfield County have several avenues for obtaining health insurance, each with distinct advantages:

Marketplace Virginia (HealthCare.gov)

For many self-employed individuals and small businesses, the individual marketplace is the primary source of coverage. Marketplace Virginia, which uses the federal HealthCare.gov platform, offers a range of plans categorized by metal tiers: Bronze, Silver, Gold, and Platinum. These plans cover essential health benefits, and eligible individuals may qualify for premium tax credits and cost-sharing reductions based on income. In Virginia, PPO, HMO, and EPO plans are available on-exchange.

Chesterfield County, with a population of 377,869 and an uninsured rate of 6.5% per U.S. Census Bureau ACS 2024 5-year estimates, is part of Virginia Rating Area 3. This rating area also covers Charles City, Colonial Heights, Dinwiddie, Goochland, Hanover, Henrico, Hopewell, New Kent, Petersburg, Powhatan, Richmond, and Richmond counties. Residents of Chesterfield County have access to a variety of plans offered by multiple carriers, ensuring competitive options.

Virginia Medicaid (FAMIS Plus)

Virginia expanded Medicaid in 2019, extending eligibility to adults with household incomes up to 138% of the Federal Poverty Level (FPL). If your income as a self-employed individual falls within this range, you may qualify for low-cost or no-cost health coverage through Virginia Medicaid (also known as FAMIS Plus). This program provides comprehensive benefits, including doctor visits, hospital stays, prescription drugs, and mental health services. Pregnant women in Virginia may qualify for FAMIS Moms with incomes up to 200% FPL, and children can be covered through FAMIS up to 200% FPL.

Direct from Insurers

You can also purchase health insurance directly from private insurance companies outside of the Marketplace. While these plans may not be eligible for premium tax credits, they offer a broader range of options and may be suitable for those who do not qualify for subsidies or prefer specific plan features not available on-exchange.

Health Insurance Carriers in Chesterfield County

For 2026, 6 carriers offer marketplace plans in Rating Area 3, which covers Charles City, Chesterfield, Colonial Heights, Dinwiddie, Goochland, Hanover, Henrico, Hopewell, New Kent, Petersburg, Powhatan, Richmond, and Richmond counties. These carriers provide a range of plan types, including HMO, PPO, and EPO options, to meet diverse needs:

CareFirst BlueChoice
Cigna
HealthKeepers
Oscar Health
Sentara Health Plans
United Healthcare

When choosing a plan, consider factors such as monthly premiums, deductibles, out-of-pocket maximums, and network access to local providers like Bon Secours St Francis Medical Center in Midlothian.

Making the Right Choice for Your Small Business Health Coverage

Choosing the right health insurance plan involves balancing cost, coverage, and tax benefits. Here's a decision-making framework:

Assess your income: If your household income is below 138% FPL, explore Virginia Medicaid (FAMIS Plus) first by applying through commonhelp.virginia.gov.
Consider premium tax credits: If your income is between 100% and 400% FPL, you will likely qualify for significant premium tax credits on Marketplace Virginia (HealthCare.gov), which can substantially lower your monthly premiums. Even if you plan to take the self-employed health insurance deduction, these credits still apply.
Evaluate plan types: Decide whether an HMO, PPO, or EPO best fits your needs. PPOs offer more flexibility in choosing doctors, while HMOs typically have lower premiums.
Factor in the Self-Employed Health Insurance Deduction: Remember that premiums you pay (after any subsidies) are generally 100% deductible if you meet the eligibility criteria. Keep good records of your premium payments.
Small employer tax credit: If you're an employer with fewer than 25 FTEs, investigate the SHOP Marketplace for the Small Business Health Care Tax Credit.

A licensed health insurance producer can provide personalized guidance, helping you compare plans, understand subsidy eligibility, and maximize your tax deductions.

Frequently Asked Questions

Can I deduct health insurance premiums as a small business owner in Virginia?

Yes, if you are self-employed or a small business owner in Virginia and not eligible to participate in an employer-sponsored health plan, you can generally deduct 100% of your health insurance premiums through the Self-Employed Health Insurance Deduction. This deduction is taken as an adjustment to income, reducing your adjusted gross income (AGI).

What is the small business health care tax credit in Chesterfield County?

The Small Business Health Care Tax Credit is available to small employers (fewer than 25 full-time equivalent employees) who pay at least 50% of employee premium costs and purchase coverage through the SHOP Marketplace. In Chesterfield County, eligible small businesses can receive a credit of up to 50% of the premiums paid (35% for tax-exempt organizations).

Are PPO plans available on the Marketplace Virginia in Chesterfield County?

Yes, for 2026, PPO plans are available on Marketplace Virginia (HealthCare.gov) in Chesterfield County. Consumers can choose from HMO, PPO, and EPO plan structures offered by various carriers in Rating Area 3.

How do I apply for health insurance in Chesterfield County?

Most self-employed individuals will apply through Marketplace Virginia at HealthCare.gov during the annual Open Enrollment Period (typically November 1 to January 15). If you experience a qualifying life event, you may be eligible for a Special Enrollment Period. You can also apply for Virginia Medicaid (FAMIS Plus) at any time if your income qualifies.

What is the income limit for Virginia Medicaid in Chesterfield County?

Adults in Chesterfield County may qualify for Virginia Medicaid (FAMIS Plus) if their household income is up to 138% of the Federal Poverty Level (FPL). For pregnant women, the income limit is 200% FPL (FAMIS Moms), and for children, it's also 200% FPL (FAMIS).