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LTC Bullet:

Report on State Tax Treatment of LTC Insurance Premiums Available

Tuesday June 20, 2000


The Center for LTC Financing is often asked for the status of state initiatives to encourage long-term care insurance with tax incentives. We do not track this information specifically, so we refer inquiries to others who do. Now a published resource is available. The Larson Long Term Care Group recently released the report "State Income Tax Deductions & Credits for Long Term Care Insurance Premiums" (May 1, 2000). Here's a summary of the information available in the report:

"This report describes state income tax deductions and credits available to individual taxpayers for long term care insurance premiums . . . . The following states have laws that grant a state income tax deduction or credit to taxpayers for long term care insurance premiums: Alabama, California, Colorado, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Minnesota, Missouri, Montana, New York, North Carolina, North Dakota, Ohio, Oregon, Utah, Virginia, West Virginia, Wisconsin..."

"The laws on this issue may change over the next year. Legislation to adopt new or change existing laws on this issue is proposed in numerous states, including: Arizona, California, Georgia, Iowa, Illinois, Kansas, Missouri, Nebraska, New Jersey, New Mexico, New York, Oklahoma, South Carolina." (p. 1)

State tax treatment of long term care premiums is wide ranging. For example, Indiana "allows a deduction for the full amount of premiums paid on an Indiana qualified long term care partnership plan," while Oregon permits a tax credit for premiums "equal to the lesser of 15% of premiums paid . . . or $500." (pps. 3, 5)

Thanks to Larson Long Term Care Group for compiling this information and making it available to the public. Order copies ($10) from the Larson Long Term Care Group, Subscription Dept. Postal address: 3303 Monte Villa Pkwy, Suite 300, Bothell, WA. 98021. Phone: 1-800-466-1611. Fax: 425-398-2615. Download the fax order form at