Estimate your SHOP health care tax credit

The SHOP Tax Credit Estimator can help determine if your business may qualify for the Small Business Health Care Tax Credit, and if it does, how much it could be worth to you.

To qualify for the tax credit, all of the following must apply:

  • You have fewer than 25 full-time equivalent (FTE) employees
  • Your average employee salary is about $50,000 per year or less
  • You pay at least 50% of your full-time employees' premium costs
  • You offer coverage to your full-time employees through the SHOP Marketplace

The tax credit is worth up to 50% of your contribution toward your employees' premium costs (up to 35% for tax-exempt employers).

You don’t need to offer coverage to your part-time employees or to dependents to qualify for the tax credit.

Information you need to use the SHOP Tax Credit Estimator

Before you use the SHOP Tax Credit Estimator you should have this information handy:

  • Tax status (exempt or non-exempt)
  • A list of all full-time (those working 40+ hours per week) and part-time employees (those working fewer than 40 hours per week).
  • The hours worked per week by part-time employees. You’ll have the option to enter the hours worked by each part-time employee onto a worksheet that will calculate the total hours worked by all part-time employees.
  • Wage and tax forms
  • Insurance premiums you paid last year (health and dental)

The eligibility results you get from the SHOP Tax Credit Estimator and the amount you qualify for are only estimates.

This tool is based on current IRS guidance regarding the Small Business Health Care Tax Credit. It will be updated to reflect any changes to IRS guidance or regulations regarding the credit.