Are Dental Insurance Premiums Tax Deductible?

Dental insurance premiums can be a significant annual expense, especially for individuals and families who purchase coverage on their own. A common question is whether those premiums can be deducted on your federal tax return. The short answer is that it depends on your situation. For some taxpayers, dental premiums are fully deductible. For others, the deduction may not be available or may not provide a meaningful benefit.

This guide explains the rules that determine whether you can deduct dental insurance premiums, including the differences for employees, self-employed individuals, and retirees. Consult a tax professional for advice specific to your situation, as individual circumstances vary.

When Dental Premiums Are Tax Deductible

The IRS considers dental insurance premiums to be a medical expense. This means they can potentially be deducted on your tax return, but only under certain conditions. The two main paths to deducting dental premiums are through itemized deductions on Schedule A or through the self-employed health insurance deduction.

To claim dental premiums as an itemized deduction, all of the following must be true:

• You itemize deductions on Schedule A instead of taking the standard deduction.
• Your total medical and dental expenses exceed 7.5% of your adjusted gross income (AGI).
• You paid the premiums with after-tax dollars (not through a pre-tax payroll deduction).

Many taxpayers do not benefit from this deduction because the standard deduction is often higher than their total itemized deductions. For the 2026 tax year, the standard deduction is approximately $15,000 for single filers and $30,000 for married couples filing jointly. Unless your total itemized deductions, including medical expenses, mortgage interest, state and local taxes, and charitable contributions, exceed those amounts, itemizing may not be worthwhile.

The 7.5% AGI Threshold Explained

Even if you do itemize, you cannot deduct all of your medical and dental expenses. You can only deduct the portion that exceeds 7.5% of your adjusted gross income. This threshold can make it difficult for many people to benefit from the deduction unless they have substantial medical costs in a given year.

Here is an example of how the threshold works:

• Your AGI: $60,000
• 7.5% of AGI: $4,500
• Total medical and dental expenses: $7,000 (including $1,200 in dental premiums)
• Deductible amount: $2,500 ($7,000 minus $4,500)

In this example, you could deduct $2,500 of your medical and dental expenses on Schedule A. The dental premiums are included in the total but are not separately broken out. All qualifying medical and dental expenses are combined, and only the portion above the 7.5% threshold counts.

Self-Employed Health Insurance Deduction

Self-employed individuals have a significant advantage when it comes to deducting dental insurance premiums. If you are self-employed and purchase your own dental insurance, you can deduct 100% of the premiums as an above-the-line deduction. This means the deduction reduces your adjusted gross income directly, which can lower your overall tax liability.

Key points about the self-employed deduction:

• You do not need to itemize deductions to claim it.
• The deduction applies to dental, medical, and vision insurance premiums for you, your spouse, and your dependents.
• The deduction cannot exceed your net self-employment income for the year.
• You cannot claim this deduction for any month in which you were eligible to participate in an employer-subsidized health plan (yours or your spouse's).

This deduction is available to sole proprietors, partners in a partnership, LLC members, and S corporation shareholders who own more than 2% of the company. It is one of the most valuable tax benefits available to self-employed workers.

Dental Premiums for Business Owners

If you own a business, the way you deduct dental insurance premiums depends on the type of business entity you have and how the premiums are paid.

• Sole proprietors: Deduct dental premiums using the self-employed health insurance deduction on your personal tax return.
• S corporation owners (more than 2% ownership): Premiums paid by the S corp should be included in your W-2 wages. You can then deduct them using the self-employed health insurance deduction.
• C corporation owners: The corporation can deduct dental insurance premiums as a business expense. The premiums are generally not taxable income to you as an employee of the corporation.
• Partnerships and LLCs: Partners and LLC members typically deduct premiums the same way as sole proprietors, using the self-employed health insurance deduction.

If your business provides dental insurance to employees, those premiums are generally deductible as a business expense on the company's tax return. Consult a tax professional for advice specific to your situation and business structure.

What Counts as a Deductible Medical and Dental Expense

If you do itemize, dental insurance premiums are just one part of the medical expenses you can include. The IRS allows you to deduct a broad range of medical and dental costs. Combining all qualifying expenses can help you cross the 7.5% AGI threshold.

Qualifying expenses include:

• Health, dental, and vision insurance premiums paid with after-tax dollars
• Copays, deductibles, and coinsurance for dental and medical care
• Out-of-pocket costs for dental procedures (fillings, crowns, dentures, etc.)
• Prescription medications
• Eye exams, glasses, and contact lenses
• Long-term care insurance premiums (up to age-based limits)
• Medicare Part B and Part D premiums

Expenses paid with pre-tax dollars from an HSA or FSA cannot also be claimed as an itemized deduction. For more about using these accounts, see our guide on using your HSA or FSA for dental and vision expenses.

HSA-Eligible Plans and Dental Premiums

If you are enrolled in a high-deductible health plan (HDHP) and have a Health Savings Account (HSA), you may wonder how dental premiums fit in. Generally, you cannot use HSA funds to pay dental insurance premiums. However, you can use HSA funds to pay for out-of-pocket dental expenses such as copays, deductibles, and procedures not fully covered by insurance.

There are limited exceptions where HSA funds can pay premiums:

• COBRA continuation coverage premiums
• Health insurance premiums while receiving unemployment benefits
• Medicare premiums (Part A, B, C, or D) if you are age 65 or older

Standalone dental insurance premiums do not fall into these exceptions. However, the dental expenses themselves that you pay out of pocket remain eligible for HSA reimbursement.

Record-Keeping Tips for Dental Tax Deductions

If you plan to claim dental expenses as a tax deduction, good record-keeping is essential. The IRS may request documentation to support your deduction, so having organized records can save you time and stress.

Here are practical tips for tracking your dental expenses:

• Save all receipts: Keep receipts from your dentist, orthodontist, and any other dental provider. Digital copies are generally acceptable.
• Track premium payments: Keep a record of each dental insurance premium payment, including the date, amount, and method of payment.
• Save Explanation of Benefits (EOB) forms: These forms from your insurance company show what was billed, what insurance paid, and what you owe.
• Use a spreadsheet or app: Track expenses throughout the year rather than trying to reconstruct them at tax time.
• Keep records for at least three years: The IRS generally has three years from the date you file your return to audit it. Some situations allow a longer period, so keeping records for six years is even safer.

The Bottom Line

Dental insurance premiums are considered medical expenses by the IRS and can be tax deductible in certain situations. Self-employed individuals have the most favorable treatment, with the ability to deduct 100% of premiums as an above-the-line deduction. For everyone else, the deduction requires itemizing and exceeding the 7.5% AGI threshold, which limits its usefulness for many taxpayers.

Whether or not you can deduct your premiums, having dental insurance can still save you money by reducing the cost of care at the dentist's office. For help choosing a plan, see our dental insurance guide.

Consult a tax professional for advice specific to your situation. Tax laws and standard deduction amounts can change from year to year. This article is for educational purposes and does not constitute tax, legal, or financial advice.