Inflation-adjusted tax deductions for premiums for qualified long-term care insurance have been announced. The deductions vary by age but generally the inflation adjustments increase the deduction by about 3 percent.
For premiums paid for long-term care insurance to be deductible, the insurance has to meet statutory qualification requirements, including consumer protections. Those requirements did not change. The premiums must also exceed 7.5 percent of the taxpayer’s adjusted gross income.
The new inflation-adjusted tax deductions for qualified long-term care insurance are:
Age 40 or less prior to close of tax year 2026, $500 (up from $480 in 2025)
Age 41 to 50 prior to close of tax year 2026, $930 (up from ($900 in 2025)
Age 51 to 60 prior to close of tax year 2026, $1,860 (up from $1,800 in 2025)
Age 61 to 70 prior to close of tax year 2026, $4,960 (up from $4,810 in 2025)
Age 71 or older prior to close of tax year 2026, $6,200 (up from $6,020 in 2025)
Prospects: Note that the deduction is only available for qualified policies. Qualifications include both rules regarding coverage provided and consumer protections. Subject to strict qualification rules (for example, provision of more than half the parents’ support, a low level of parental income, and only available to those who itemize), children of aging parents can buy qualified long-term care insurance for their parents, and take the tax deduction for the premiums paid.
NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.