IRS Increases 2027 Tax-Deductible Limits for Long-Term Care Insurance
New federal limits offer potential tax advantages for older Americans, business owners and retirees planning for future care costs
Los Angeles, CA, November 12, 2026 --(PR.com)-- Americans considering long-term care insurance have another reason to examine the potential tax advantages of coverage. The Internal Revenue Service has announced higher 2027 limits on premiums that may qualify for favorable federal tax treatment, according to the American Association for Long-Term Care Insurance (AALTCI).
The new limits allow eligible taxpayers to count as much as $6,290 per individual age 71 or older toward the potential tax deduction for qualified long-term care insurance premiums. That represents an increase from the 2026 limit of $6,200. A married couple where both individuals qualify could have as much as $12,580 in eligible premiums, depending on their ages and individual circumstances.
"Many Americans are unaware that long-term care insurance premiums may qualify for a tax deduction," said Jesse Slome, director emeritus of the American Association for Long-Term Care Insurance. "This is particularly important for business owners and people approaching or already in retirement. The potential tax advantages deserve to be part of the conversation when evaluating long-term care protection."
The tax treatment can be especially relevant for business owners. Depending on the business structure and applicable tax rules, self-employed individuals may be able to deduct eligible premiums within the IRS limits. Certain business arrangements can also provide tax advantages when long-term care insurance is purchased for employees.
Retirees may have another opportunity. Qualified long-term care insurance premiums can potentially be included with other eligible medical expenses when determining whether itemized medical deductions exceed the applicable adjusted-gross-income threshold.
"People often assume tax benefits are only available while they are working," Slome explained. "But retirement can be a time when medical expenses become a larger part of someone's financial picture. Understanding the rules may help people make better-informed decisions."
An important distinction is that the federal tax treatment applies to policies meeting the government's definition of a tax-qualified long-term care insurance contract. Many popular hybrid life insurance policies with long-term care benefits do not qualify for the same premium deduction.
2027 Maximum Eligible Long-Term Care Insurance Premium Limits
The following IRS limits apply per individual, based on attained age at the close of the taxable year:
Taxpayer's Age
2027 Maximum Limit
40 or younger
$500
More than 40 but not more than 50
$945
More than 50 but not more than 60
$1,890
More than 60 but not more than 70
$5,030
More than 70
$6,290
The IRS also announced a 2027 per-day limitation of $445 for qualified long-term care insurance contract or life insurance contract benefits.
The association encourages consumers to consult with a qualified tax professional to determine whether premiums may be deductible based on their individual circumstances.
To review the history of federal tax deductibility limits and learn more about long-term care insurance tax considerations, visit the American Association for Long-Term Care Insurance's https://www.aaltci.org/long-term-care-insurance/learning-center/tax-for-business.php.
Source: IRS Revenue Procedure 2026-35.
About the American Association for Long-Term Care Insurance
The American Association for Long-Term Care Insurance (https://www.aaltci.org) is a national organization dedicated to promoting consumer awareness and education about long-term care planning and insurance. AALTCI does not sell insurance products. Its website provides consumer information, research and resources to help Americans make more informed decisions about long-term care protection.
The new limits allow eligible taxpayers to count as much as $6,290 per individual age 71 or older toward the potential tax deduction for qualified long-term care insurance premiums. That represents an increase from the 2026 limit of $6,200. A married couple where both individuals qualify could have as much as $12,580 in eligible premiums, depending on their ages and individual circumstances.
"Many Americans are unaware that long-term care insurance premiums may qualify for a tax deduction," said Jesse Slome, director emeritus of the American Association for Long-Term Care Insurance. "This is particularly important for business owners and people approaching or already in retirement. The potential tax advantages deserve to be part of the conversation when evaluating long-term care protection."
The tax treatment can be especially relevant for business owners. Depending on the business structure and applicable tax rules, self-employed individuals may be able to deduct eligible premiums within the IRS limits. Certain business arrangements can also provide tax advantages when long-term care insurance is purchased for employees.
Retirees may have another opportunity. Qualified long-term care insurance premiums can potentially be included with other eligible medical expenses when determining whether itemized medical deductions exceed the applicable adjusted-gross-income threshold.
"People often assume tax benefits are only available while they are working," Slome explained. "But retirement can be a time when medical expenses become a larger part of someone's financial picture. Understanding the rules may help people make better-informed decisions."
An important distinction is that the federal tax treatment applies to policies meeting the government's definition of a tax-qualified long-term care insurance contract. Many popular hybrid life insurance policies with long-term care benefits do not qualify for the same premium deduction.
2027 Maximum Eligible Long-Term Care Insurance Premium Limits
The following IRS limits apply per individual, based on attained age at the close of the taxable year:
Taxpayer's Age
2027 Maximum Limit
40 or younger
$500
More than 40 but not more than 50
$945
More than 50 but not more than 60
$1,890
More than 60 but not more than 70
$5,030
More than 70
$6,290
The IRS also announced a 2027 per-day limitation of $445 for qualified long-term care insurance contract or life insurance contract benefits.
The association encourages consumers to consult with a qualified tax professional to determine whether premiums may be deductible based on their individual circumstances.
To review the history of federal tax deductibility limits and learn more about long-term care insurance tax considerations, visit the American Association for Long-Term Care Insurance's https://www.aaltci.org/long-term-care-insurance/learning-center/tax-for-business.php.
Source: IRS Revenue Procedure 2026-35.
About the American Association for Long-Term Care Insurance
The American Association for Long-Term Care Insurance (https://www.aaltci.org) is a national organization dedicated to promoting consumer awareness and education about long-term care planning and insurance. AALTCI does not sell insurance products. Its website provides consumer information, research and resources to help Americans make more informed decisions about long-term care protection.
Contact
American Association for Long-Term Care Insurance
Jesse Slome
818-597-3227
https://www.aaltci.org
Jesse Slome
818-597-3227
https://www.aaltci.org
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