Tax Deductible Limits for Long-term Care Insurance Increase

The IRS has announced increased 2025 tax deductible limits for long-term care insurance.

“Tax deductibility of tax-qualified long-term care insurance premiums remains one of the best-kept secrets in financial planning,” said Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).

“The 2025 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," he said.

The 2025 limit for an individual age 70 or more is $6,020, according to AALTCI. “Most policies are purchased by couples, which means they could deduct up to $12,040 next year depending on their age,” Slome explained.

“Business owners may be able to deduct the full cost of their insurance protection and have a paid-in-full policy when they reach retirement age.”

The following are the new 2024 deductible limits per individual (2023 limits in parentheses):

Age 40 or less at the end of 2024 - $480 ($470)

More than 40 but not more than 50 - $900 ($870)

More than 50 but not more than 60 - $1,800 ($1,760)

More than 60 but not more than 70 - $4,810 ($4,710)

More than 70 - $6,020 ($5,880)