Long-Term Care Insurance Tax Deductible Limits to Increase by 3%

Increased 2026 tax deductible limits for long-term care insurance have just been announced by the IRS, according to the American Association for Long-Term Care Insurance (AALTCI).

“The tax deductibility of tax-qualified long-term care insurance premiums is an incredible benefit potentially for many aging Americans,” said Jesse Slome, director emeritus of the AALTCI.

“The 2026 deductible limits are significant and few people, especially small and mid-sized business owners, are aware that premiums paid for long-term care insurance may be tax deductible.”

The just announced 2026 limit for an individual age 70 or over is $6,200, according to AALTCI. This represents a 3% increase from the current 2025 limit.

“Many policies are purchased by couples, which means they could deduct up to $12,400 next year depending on their age,” Slome explained.

Only long-term care policies that meet the federal government’s tax-qualified requirements qualify for a potential tax deduction.

“Most of the linked benefit or hybrid life insurance policies, the ones more popular today do not qualify for a possible tax benefit,” Slome said.

“Two types of individuals can gain the most benefit from the IRS deductions,” Slome added. “First, business owners, who may be able to deduct the full cost of their insurance protection. They could even benefit by having a paid-in-full policy when they reach retirement age.”

In addition, people who have retired from jobs can benefit.

“That’s when income levels enable more people to reach the required health expense threshold to make premiums deductible,” Slome said. “That potential tax deduction can be a huge benefit after retirement and something seniors should take into consideration when looking into their long-term care protection options.”

The following are the new 2026 deductible limits by age (2025 limits in brackets):

40 or less $500 ($480)

More than 40 but not more than 50 $930 ($900)

More than 50 but not more than 60 $1,860 ($1,800)

More than 60 but not more than 70 $4,960 ($4,810)

More than 70 $6,200 ($6,020)