Long Term Care Insurance
What long-term care insurance pays for, how much of the premium you can deduct in 2026, the tax rules for benefits, and a calculator.
Long term care insurance tax deduction calculator (2026)
What long term care insurance covers
Long-term care insurance pays for help with daily activities, such as bathing, dressing and eating, at home, in assisted living or in a nursing home, which Medicare largely doesn't cover. Policies pay a daily or monthly benefit after a waiting period. Hybrid life insurance policies with long-term care riders are an alternative.
Tax deduction limits for 2026
Premiums for a tax-qualified policy count as medical expenses, up to an age-based limit (IRS Rev. Proc. 2025-32):
| Age at year-end | Deductible premium |
|---|---|
| 40 or under | $500 |
| 41–50 | $930 |
| 51–60 | $1,860 |
| 61–70 | $4,960 |
| 71 and over | $6,200 |
- Self-employed: deduct the eligible premium as self-employed health insurance, without itemizing.
- Everyone else: include it in itemized medical expenses, which count only above 7.5% of AGI.
- You can pay eligible premiums tax-free from an HSA.
- Benefits from a qualified policy are generally tax-free; per-diem policies are tax-free up to $430 a day in 2026 (or actual costs, if higher).
Common questions
Is long term care insurance tax deductible?
Yes, up to an age-based limit, as a medical expense or a self-employed health insurance deduction.
What is the 2026 limit at age 65?
$4,960 of premiums.
Are long term care benefits taxable?
Generally not for qualified policies; per-diem benefits are tax-free up to $430 a day in 2026.
Sources
More retirement calculators: Custodial Roth IRA · How Much Do I Need to Retire · Maximum Social Security Benefit · Medicare Advantage
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.