Long-term care insurance can help cover the cost of services such as assisted living, nursing home care, and in-home care. These expenses can be significant, so many people ask an important question during tax season:
Can long-term care insurance premiums be deducted on your taxes?
The answer is yes — in many cases, they can be partially deductible. However, the rules depend on factors such as your age, income, whether you itemize deductions, and whether the policy qualifies under IRS guidelines.
In this guide, we’ll explain:
- When long-term care insurance premiums are tax deductible
- The 2026 IRS deduction limits based on age
- How the 7.5% medical expense rule works
- Whether HSA or FSA funds can be used to pay premiums
Are long-term care insurance premiums tax deductible?
Yes. The IRS allows taxpayers to treat qualified long-term care insurance premiums as medical expenses.
However, these premiums are deductible only if you itemize deductions on Schedule A and your total medical expenses exceed 7.5% of your adjusted gross income (AGI).
According to the IRS, qualified long-term care insurance premiums may be included with other medical expenses such as doctor visits, prescription medications, and hospital costs.
2026 long-term care insurance deduction limits
The IRS sets annual limits on how much of your long-term care insurance premiums can be treated as medical expenses. These limits increase with age.
For tax year 2026, the maximum deductible premiums are:
| Age | Maximum Deductible Premium |
|---|---|
| 40 or younger | $500 |
| 41 – 50 | $930 |
| 51 – 60 | $1,860 |
| 61 – 70 | $4,960 |
| 71 or older | $6,200 |
Source: IRS age-based limits for qualified long-term care insurance premiums (2026).
These amounts represent the maximum portion of premiums that may be included as medical expenses, not the total amount you automatically deduct.
IRS Internal Revenue Bulletin – Age-based limits for qualified long-term care premiums. https://www.irs.gov/irb/2025-45_IRB
Understanding the 7.5% medical expense rule
Even if your long-term care premiums fall within the IRS limits above, you can only deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI).
Example
Suppose your AGI is $100,000.
7.5% of AGI = $7,500
If your total medical expenses are:
- Long-term care insurance: $4,000
- Doctor visits and prescriptions: $4,000
- Total medical expenses: $8,000
You could deduct $500 ($8,000 − $7,500).
What qualifies as a tax-qualified long-term care policy?
Not all long-term care insurance policies qualify for tax deductions.
To be eligible, the policy must meet IRS requirements for tax-qualified long-term care insurance. Generally, these policies must:
- Cover qualified long-term care services
- Provide benefits for chronic illness or disability
- Not primarily function as life insurance
- Meet federal consumer protection standards
Qualified long-term care services typically include:
- Nursing home care
- Assisted living services
- Home health care
- Adult day care
- Personal care assistance
Can I use an HSA to pay long-term care insurance premiums?
Yes. In many cases, Health Savings Account (HSA) funds can be used to pay qualified long-term care insurance premiums.
However, the same age-based annual limits apply when using HSA funds for these premiums.
HSA funds may also be used for qualified long-term care services such as:
- Home health aides
- Nursing services
- Physical therapy
- Assisted living care
Who is most likely to benefit from the deduction?
Long-term care insurance deductions tend to benefit individuals who:
- Are over age 60
- Pay higher medical expenses
- Itemize deductions rather than taking the standard deduction
- Have long-term care premiums within IRS limits
Older adults often benefit the most because the IRS allows higher deductible premium amounts for older age groups.
When long-term care premiums may not be deductible
There are several situations where long-term care insurance premiums may not provide a tax deduction:
- You take the standard deduction
If you do not itemize deductions, medical expenses cannot be claimed.
- Your medical expenses do not exceed 7.5% of AGI
Only expenses above that threshold are deductible.
- The policy is not tax-qualified
Some policies do not meet IRS requirements.
Educational Disclaimer
This article is provided for informational and educational purposes only and should not be considered tax, financial, or legal advice. Tax laws and regulations may change, and individual circumstances can vary. Readers should consult a qualified tax professional, financial advisor, or accountant before making decisions based on the information provided.
For the most accurate and current information, please refer to official guidance from the Internal Revenue Service (IRS) or other relevant regulatory authorities.
