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Senior living guide

Is assisted living or memory care tax deductible?

Sometimes. Part or all of the cost can count as a medical expense on a federal return when certain conditions are met. Here is what the IRS looks for.

This guide is general information, not tax advice. Tax rules depend on each family's situation, so talk with a tax professional before you file.

The short answer

Costs for care can count as medical expenses when the person is chronically ill and the care follows a plan of care prescribed by a licensed health care practitioner, such as a doctor or nurse. Medical expenses are deductible only if you itemize, and only the part above 7.5% of adjusted gross income.

What "chronically ill" means to the IRS

IRS Publication 502 says a person is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that they meet one of these:

  • They cannot perform at least two activities of daily living (eating, toileting, transferring, bathing, dressing or continence) without substantial help for at least 90 days, because of a loss of functional capacity.
  • They need substantial supervision to be protected from threats to health and safety because of severe cognitive impairment.

The second test is why memory care costs often qualify for people living with Alzheimer's disease or another form of dementia.

How much of the cost can count

When the main reason for living in the community is to receive medical care, the IRS allows the full cost, including meals and lodging. When it is not, only the part of the cost that pays for care counts. Ask the community for an itemized statement showing what part of the monthly rate is for care.

Paying for a parent's care

If you pay for a parent's care and the parent qualifies as your dependent, or would except for their income, you may be able to include what you paid in your own medical expenses. Rules about dependents and siblings sharing costs are detailed, so this is a good question for a tax professional.

What to gather before tax time

  • The practitioner's written certification that the person is chronically ill
  • The plan of care
  • Monthly statements from the community, ideally showing the care portion
  • Records of who paid and when
  • Long-term care insurance statements, if any, since insurance reimbursements reduce what you can deduct

Paying for senior living covers VA Aid and Attendance, long-term care insurance and a home sale. Our assisted living vs memory care guide explains the difference in care.

Source: IRS Publication 502, Medical and Dental Expenses, for use in preparing 2025 returns.

Questions

Tax questions: common questions

Is memory care tax deductible?

Often, in part or in full. When a licensed practitioner certifies that a person needs substantial supervision because of severe cognitive impairment, and care follows a prescribed plan of care, the cost can count as a medical expense. Talk with a tax professional about your situation.

Is independent living tax deductible?

Generally not, because independent living does not include care. Ask a tax professional whether any part of a fee counts as medical care.

Do I have to itemize?

Yes. Medical expenses are deductible only on Schedule A, and only the part above 7.5% of adjusted gross income.

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