Is Long Term Care Insurance Tax Deductible? 2026 Update
See the 2026 IRS age-based premium limits for qualified long term care insurance, plus rules for itemizers, HSA owners, self-employed filers, businesses, hybrid policies, and state tax breaks.
2026 tax year update
Highest 2026 age-based limit
$6,200
For taxpayers over age 70.
Most individual filers
7.5%
Schedule A medical expenses must exceed 7.5% of AGI.
This guide is general education for the 2026 tax year. Your CPA or tax preparer should confirm how the rules apply to your policy, entity structure, and state return.
2026 Long Term Care Insurance Deduction Limits
The IRS 2026 limits for eligible long term care premiums are now higher than the 2025 limits. These amounts are per insured person and use the person's attained age before the close of the taxable year.
| Age at end of 2026 tax year | 2026 eligible premium limit | 2025 limit | Change |
|---|---|---|---|
| 40 or less | $500 | $480 | +$20 |
| More than 40 but not more than 50 | $930 | $900 | +$30 |
| More than 50 but not more than 60 | $1,860 | $1,800 | +$60 |
| More than 60 but not more than 70 | $4,960 | $4,810 | +$150 |
| More than 70 | $6,200 | $6,020 | +$180 |
Source: IRS Rev. Proc. 2025-32, section 4.27, which sets the 2026 limits under Internal Revenue Code section 213(d)(10).
Quick answer
If your policy is tax-qualified, premiums may count as medical expenses up to the age-based IRS cap.
Per person
A married couple can apply the limit separately for each spouse, using each spouse's own age.
No double dip
Do not deduct premiums that were already paid or reimbursed with tax-free HSA dollars.
Finally, one advantage to getting older: better deduction limits.
Blast From The Past: Our 2013 Video
Blast from the past
This LTC Tree video was recorded in 2013. The core idea still helps, but the numbers and rules on this page are the current 2026 update.
How The Federal Deduction Works In 2026
For most individual taxpayers, qualified long term care insurance premiums are treated as medical expenses. That means they may help if you itemize deductions on Schedule A, but only the portion of total unreimbursed medical expenses above 7.5% of adjusted gross income is deductible. The IRS explains that threshold in Publication 502.
The age-based limit does not mean you automatically get that full deduction. It is the maximum amount of qualified premium you can include as a medical expense for that insured person.
For example, if you are age 62 at the end of 2026 and pay $3,900 for a tax-qualified policy, you can include $3,900. If you pay $5,400, you can include only $4,960 because that is the 2026 limit for your age band.
First confirm the policy is tax-qualified. Then apply the age-based premium limit. Then apply the tax rule for your filing path: Schedule A, HSA reimbursement, self-employed health insurance deduction, or employer-paid coverage.
Qualified Policies And Grandfathered Contracts
Most long term care insurance policies sold today are designed to be tax-qualified. A tax-qualified policy generally follows the HIPAA-era rules and Internal Revenue Code section 7702B standards.
Policies issued before January 1, 1997, are generally treated as tax-qualified if the policy was approved by the insurance commissioner of the state in which it was sold. Policies issued on or after January 1, 1997, must meet federal tax-qualified long term care standards.
A qualified policy generally must:
- Pay benefits only for qualified long term care services.
- Use a licensed health care practitioner's plan of care.
- Trigger benefits when the insured needs substantial assistance with at least two of six activities of daily living for at least 90 days, or has a qualifying cognitive impairment.
- Use the HIPAA-standard activities of daily living: eating, bathing, dressing, toileting, transferring, and maintaining continence.
- Be guaranteed renewable or non-cancelable.
- Include lapse protection such as third-party notification.
HSA Owners
Health Savings Account funds can be a useful way to pay qualified long term care insurance premiums, but the same age-based limits apply. In other words, HSA reimbursement for long term care insurance premiums is not unlimited.
Use HSA funds carefully. If you take a tax-free HSA distribution for a premium, you generally should not also claim that same premium as an itemized medical deduction. The IRS discusses HSA medical expense rules in Publication 969.
Self-Employed And Small Business Owners
Self-employed filers may be able to claim qualified long term care insurance premiums through the self-employed health insurance deduction instead of Schedule A. That can be valuable because the deduction is reported separately from itemized deductions, but it is still subject to the age-based long term care premium limits.
This bucket can apply to:
- Sole proprietors with net profit reported on Schedule C.
- Partners with net earnings from self-employment.
- More-than-2% S corporation shareholders whose eligible premiums are handled through wages and plan rules.
Use Form 7206 and its instructions when required. The deduction depends on the business, the plan being established under that business, eligibility for subsidized employer coverage, and net earnings limits.
C Corporations, S Corporations, And Employer-Paid Premiums
Business treatment depends heavily on entity type.
For C corporations, employer-paid qualified long term care premiums for employees can often be treated more favorably than personally paid premiums, subject to plan design, nondiscrimination, compensation, and benefit rules.
For pass-through owners, including many S corporation shareholders, partners, and sole proprietors, the personal age-based limits still matter. The clean answer is rarely "deduct everything" or "deduct nothing"; it depends on how the plan is structured and how premiums are reported.
Hybrid Long Term Care Policies
Hybrid policies combine long term care benefits with life insurance or an annuity. Tax deductibility depends on whether the policy includes a qualified long term care insurance component and whether the carrier can clearly identify the premium or charge allocated to that component.
Ask the carrier or agent for a tax reporting breakdown before assuming the premium is deductible. If the long term care charge is separated, the qualified long term care portion may be eligible for the same age-based limits shown above. The life insurance or annuity portion is generally not treated the same way.
Compare Long Term Care Insurance Options
Traditional and hybrid policies can have different tax treatment. LTC Tree can help you compare policy structures before you apply.
Start QuoteNew In 2026: Retirement Plan Distributions For LTC Premiums
SECURE 2.0 added a new exception to the 10% additional tax for certain qualified long term care distributions from defined contribution retirement plans. The IRS notes that this rule is effective for distributions made after December 29, 2025, and applies to distributions used to pay for certified long term care insurance for the employee or spouse, if the plan permits it.
This is not the same thing as making premiums tax deductible. It is a separate retirement-plan rule, and ordinary income tax, plan availability, documentation, and annual caps still matter. Review it with your tax advisor and plan administrator before using retirement funds for premiums.
Source: IRS Notice 2026-13 in Internal Revenue Bulletin 2026-06.
State Tax Breaks For Long Term Care Insurance
Some states offer their own long term care insurance credits, deductions, or exemptions. These rules change more often than the federal age-based limits, and they may depend on income, residency, policy type, or whether you already used the premium on your federal return.
States that have historically offered some form of long term care insurance tax benefit include New York, Maryland, Minnesota, Mississippi, Colorado, North Dakota, New Mexico, Missouri, Ohio, and others. Washington also has a long term care payroll tax program with its own exemption history for people who had qualifying private coverage by the statutory deadline.
Before filing, check your state revenue department's current guidance or ask your tax preparer. State tax breaks can be useful, but the details are too state-specific to assume from the federal table alone.
Frequently Asked Questions
Is long term care insurance tax deductible in 2026?
Yes, if the policy is tax-qualified and you meet the filing rules. For individual itemizers, eligible premiums are included as medical expenses up to the IRS age-based limit, and medical expenses are deductible only to the extent total qualified medical expenses exceed 7.5% of AGI.
Are the 2026 limits per policy or per person?
They are per insured person. If both spouses have qualified coverage, each spouse uses the limit for that spouse's age at the end of the tax year.
Can I deduct every dollar of premium I pay?
Not always. You can include the lesser of the actual qualified premium paid or the IRS age-based limit. Then your filing method determines whether that amount produces a deduction.
Are long term care insurance benefits taxable?
Benefits from a tax-qualified long term care insurance policy are generally received tax-free, subject to IRS rules for reimbursement and per-diem policies. If you receive benefits, review Form 1099-LTC and Form 8853 instructions with your tax preparer.
Should I buy long term care insurance just for the tax deduction?
No. The tax treatment can help, especially for business owners and people with large medical expenses, but the main planning question is whether the policy protects the right amount of assets, income, and family flexibility.
