Hawley proposes bill to eliminate taxes on healthcare

WASHINGTON — Today, U.S. Senator Josh Hawley (R-Mo.) announced the No Taxes on Healthcare Act to provide relief for American families from out-of-control medical costs that have skyrocketed in recent years.

No taxes on healthcare! pic.twitter.com/WldIUdb6ce

— Josh Hawley (@HawleyMO) December 3, 2025

Studies estimate that nearly 41 percent of adults in the United States have some form of debt stemming from medical expenses. In the last year alone, a recent Gallup report found that 31 million Americans borrowed money to pay for healthcare. But under the current tax system, only itemizing taxpayers—those who do not take the standard deduction—can use medical costs to reduce their tax burden, and only then for expenses that exceed 7.5 percent of income. That means 90 percent of American families get zero tax relief for healthcare costs. This tax deduction should be reformed and expanded.

Senator Hawley’s new proposal offers a straightforward solution to begin addressing the rising cost of healthcare: no taxes on healthcare costs. Using a similar mechanism as President Trump’s “no tax on tips” and “no tax on overtime” policies, this legislation can wipe out federal income taxes for families who experience high health costs.

The No Taxes on Healthcare Act would:

Allow taxpayers to deduct all out-of-pocket medical expenses up to $25,000 per individual or dependent.
Move the medical-expense deduction “above the line,” meaning all taxpayers—including those who take the standard deduction—will be permitted to deduct their medical expenses.
Allow out-of-pocket spending on healthcare premiums to be deducted from taxes.