Tax Deductions for Traditional LTCI
In addition to protecting your financial future, purchasing long-term care insurance (LTCI) also offers valuable tax benefits. If you itemize deductions on your federal tax return, you may be able to deduct a portion or all of your LTCI premiums as a qualified medical expense. These deductions are subject to IRS rules, including age-based limits that increase as you get older.
How Tax Deductions Work for Individuals
The IRS treats long-term care insurance premiums as medical expenses. If your total medical expenses (including LTCI premiums) exceed 7.5% of your adjusted gross income (AGI), the amount above that threshold may be deductible.
The maximum deductible amount for LTCI premiums depends on your age at the end of the tax year. For 2025, the IRS guidelines allow you to deduct the following maximum amounts:
| Age at End of 2025 | Maximum Deductible Premium |
| 40 or under | $480 |
| 41–50 | $890 |
| 51–60 | $1,790 |
| 61–70 | $4,770 |
| Over 70 | $5,960 |
These figures are adjusted annually for inflation.
Tax rules can be complex, and your ability to deduct LTCI premiums depends on your individual situation. Be sure to consult with a tax advisor to understand how these deductions may apply to you.
State Tax Incentives
In addition to federal tax benefits, many states offer their own deductions or credits for LTCI premiums. These vary widely, so it’s worth checking with your state’s Department of Revenue or a qualified tax professional to find out what LTCI tax incentives are available in your state.
Interested in taking advantage of a traditional LTCI tax deduction?
Understanding both the cost and tax advantages of long-term care insurance can help you make a more informed decision about your future. Speak with an LTC Advocate to explore your options and get a personalized LTCI quote tailored to your specific situation.