New Long-Term Care Insurance Premium Deductions for 2026

Takeaways

• Nearly seven in 10 adults age 65 and over will require long-term care services at some point.
• Long-term care insurance can help pay for long-term care services that Medicare or standard health insurance typically do not cover.
• Benefits of LTCI include financial protection, preserving savings, flexibility in care options, and potential tax benefits.
• Taxpayers can deduct a portion of qualified LTCI premiums as a medical expense if total medical expenses exceed a certain percentage of their adjusted gross income.
• The maximum amount of LTCI premium that is tax-deductible is based on the policyholder’s age, and these limits have increased for the 2026 tax year.

According to U.S. Census Bureau estimates, the number of Americans age 65 and older will increase to 82 million seniors by 2050. As the population of older adults in the United States rises, so will the need for long-term care.

Many people assume they will never need long-term care. However, nearly 70 percent of adults age 65 and over will require such services at some point in their later years.

Long-term care insurance (LTCI) can help older adults afford the long-term care services they may one day need. Policyholders may also be able to deduct all or some of their LTCI premiums on their taxes, as the Internal Revenue Service (IRS) treats them as a medical expense.

What Are Long-Term Care Services?

As adults age, they may have trouble carrying out activities of daily living, such as bathing, using the bathroom, or getting dressed, on their own. Long-term care services and supports can help such seniors in performing these daily tasks, whether at home or in another setting, such as a nursing home or assisted living facility.

Different types of LTC services may include personal care, adult day services, or care in a skilled nursing facility.

What Is Long-Term Care Insurance?

Long-term care insurance (LTCI) plans help cover the costs of these types of services, while Medicare and standard health insurance plans generally do not. LTCI policies often cover a range of care services, including those listed above.

The costs and benefits of LTCI policies vary. For example, policies may offer different:

• elimination periods (how long before policy benefits begin)
• benefit periods (the length of time the policy will pay for benefits)
• daily benefit limits (the amount the policy will cover for the person’s care per day)

Should You Get LTC Insurance?

The national median cost of a semi-private room in a nursing home exceeded $9,000 a month as of 2024 – the equivalent of more than $108,000 a year. Acquiring long-term care insurance can help provide some peace of mind in protecting you from these costs. In addition, you may feel better knowing that you have secured the care you may need in your later years, thus reducing the support you may need from your loved ones.

The cost of long-term care insurance can vary widely depending on the terms of the policy and your age when you purchase a policy. For older adults who may live on a fixed income and face greater medical expenses as they age, LTCI premium deductions can help them manage costs.

How to Qualify for the Deduction

To claim a deduction for qualified LTCI premiums, taxpayers must meet several criteria beyond simply purchasing a policy.

• The policy must be “qualified.” The policy must meet specific federal standards, including consumer protection provisions outlined in the Internal Revenue Code. Policies purchased after 1996 generally meet this requirement. Premiums for nonqualified policies are not deductible.
• Medical expenses must meet a specific threshold. The total of all deductible medical expenses – which includes the qualified portion of the LTCI premium – must exceed 7.5 percent of the taxpayer’s Adjusted Gross Income (AGI). Only the amount above this threshold is deductible. (Keep in mind that the amount of the premium that counts toward the deductible medical expenses is limited by the age-based maximums listed below.)
• The deduction is limited to the premium paid by the taxpayer themselves, their spouse, or a dependent. Premiums paid by an employer on a pretax basis are generally not deductible by the employee.

For married couples filing jointly, the deductible limit is based on the age of the insured individual, and each spouse’s policy premium is treated separately. For instance, if a 65-year-old spouse and a 55-year-old spouse each have a policy, they would use the $4,960 and $1,860 limits, respectively.

Identifying Your Qualified Premium

While the IRS sets the maximum deductible amount based on your age, keep in mind that you can only deduct the qualified premium amount stated by your insurance carrier, up to that IRS limit.

Every fall, insurance companies that offer qualified LTCI policies send out a statement to policyholders (often included with the premium notice) specifying the portion of the premium that meets the federal definition of a qualified long-term care premium for the upcoming tax year. This is the amount you should use when calculating your total deductible medical expenses. Be sure to keep this statement with your other tax documentation.

If your qualified premium is less than the IRS age-based limit, you can only claim the actual qualified premium amount toward your deduction.

Tax Deductibility of LTCI Premiums for 2026

Again, to be able to deduct a portion of your long-term care insurance premiums from your taxes, your deductible medical expenses for the year must exceed 7.5 percent of your AGI. For 2026, the deductible limits per individual are as follows:

Additional Reading

For additional reading on topics related to long-term care and long-term care insurance, check out the following articles:

• What Should a Good LTC Insurance Policy Include?
• What You Should Know About Long-Term Care
• Don’t Rely on Medicare or Medicaid for Your Long-Term Care
• How Much Long-Term Care Insurance Should You Purchase?
• Why Aren’t More Older Adults Thinking About Long-Term Care Coverage?
• Basics on Medicare Home Health Coverage