Yes, some assisted living expenses are tax deductible. The IRS allows filers to deduct qualified medical expenses, including for certain long-term care services, if the total unreimbursed medical costs exceed 7.5% of the filer’s adjusted gross income (AGI) and if the filer itemizes deductions. If the resident meets the IRS definition of chronically ill, more of their assisted living costs may qualify. However, nonmedical expenses, such as room and board, meals, and general housing costs, typically aren’t deductible. When in doubt, always consult a tax professional.
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Assisted living and long-term care expenses are tax-deductible when they meet certain criteria established by the U.S. Internal Revenue Service (IRS). These criteria include but aren’t limited to:
IRS Publication 502 defines deductible medical expenses as “the cost of equipment, supplies, devices, and services whose purpose is to diagnose, cure, mitigate, treat, or prevent disease that affects any body part or function.”[01]
Certain assisted living costs, such as rent, or room and board, personal grooming services, nonprescription medicine, health club dues, and other services, aren’t deductible on a federal tax return because they don’t satisfy the IRS’ definition of eligible medical expenses.
The deductible amount is the portion of qualified medical expenses that exceeds 7.5% of the filer’s adjusted gross income (AGI), provided the filer itemizes deductions.[01]
According to the IRS, some long-term care expenses are tax deductible when the person receiving them is considered chronically ill.[01] Thus, the help that person receives to complete activities of daily living (ADLs) is considered medical in nature.
The IRS defines a chronically ill person as someone whose health care provider has documented in their care plan that they need assistance with two or more ADLs. These include:
A person is also considered chronically ill if their health care provider has determined that they need substantial supervision to stay safe due to cognitive impairment.[01] This means that many memory care expenses are also tax deductible.
Some common assisted living expenses that are generally tax deductible include:
This isn’t an exhaustive list, and your loved one may have other medical expenses that qualify for a tax deduction, such as durable medical equipment, hearing aids and repairs, eyeglasses and contacts, and laboratory fees. Equipment, such as a wheelchair, is only deductible in the year it was purchased. Equipment rental fees are also deductible. If you’re unsure about what you can deduct, consult a tax professional.
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Yes, you can claim your parent’s eligible assisted living expenses on your federal tax return, provided that certain conditions are met. According to the IRS, you can deduct the total cost of medical expenses for yourself, your spouse, and your dependents that exceeds 7.5% of your AGI. You must also itemize deductions to claim these expenses.
To claim a parent as a dependent on your federal tax return, they must meet all these requirements:[01]
Everyone’s situation is different, but you can expect that a percentage of your parent’s Social Security benefits will count towards their gross income.
Even if you can’t claim your parent as a dependent, you may still receive the medical expense deduction through specific exceptions. This generally applies if you would have been able to claim your parent as a dependent but were prevented from doing so for one of the following reasons:[01]
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To deduct assisted living expenses, follow the steps below.
Request an itemized statement from your loved one’s assisted living community. Be sure it separates medical services, such as medication management, therapy, or help with ADLs, from nonmedical costs like rent and meals.
Add up all qualified medical expenses you paid during the year, including assisted living medical costs, and subtract any reimbursements.
Only the portion of total medical expenses that exceeds 7.5% of your adjusted gross income (AGI) is deductible.
For example, if your AGI is $100,000 and you paid $10,000 in qualified medical expenses, you can only deduct $2,500. The first $7,500 (7.5% of $100,000) isn’t deductible.
You must file an itemized tax return (Schedule A) rather than take the standard deduction to claim the medical expense deduction.
At the state level, the rules for deductible medical expenses vary. Most states, but not all, also allow for some amount of medical expenses to be deducted. In states that do allow this deduction, most have set the threshold at 7.5% of a filer’s federal AGI. But a few states use higher or lower thresholds. For example:
If tax savings aren’t sufficient to offset the cost of care, you and your loved one may decide to look into other payment options for long-term care or to find more affordable assisted living. The Senior Living Advisors at A Place for Mom have decades of experience helping families find and pay for assisted living. At no cost to you, they can provide information about payment options and local communities’ rates.
Yes. You can only deduct unreimbursed expenses. If long-term care insurance pays part of the assisted living costs, subtract the amount that the insurance company reimbursed. Only the portion you paid out of pocket may count toward your medical expense deduction.
Keep itemized billing statements showing medical vs. nonmedical costs, proof of payment, a written care plan, and certification from a licensed provider if required. Good records help support your deduction if the IRS requests documentation.
Assisted living expenses are deductible in the year you pay them, not when services are provided. Only amounts actually paid during the tax year can be included in your itemized medical expense deduction.
Internal Revenue Service. (2026, February 5). Publication 502, medical and dental expenses.
Arizona Department of Revenue. (2026, January 1). Form 140 – Arizona resident personal income tax booklet.
Alabama Department of Revenue. 2025 Form 40 booklet.
New York Department of Revenue. New York resident, non-resident, and part-year resident itemized deductions.
The information contained on this page is for informational purposes only and is not intended to constitute medical, legal or financial advice or create a professional relationship between A Place for Mom and the reader. Always seek the advice of your health care provider, attorney or financial advisor with respect to any particular matter, and do not act or refrain from acting on the basis of anything you have read on this site. Links to third-party websites are only for the convenience of the reader; A Place for Mom does not endorse the contents of the third-party sites.