Smart Tax Deductions for Seniors Aging in Place in 2026
Take advantage of new senior tax deductions to maximize savings and make it even more affordable to stay independent and avoid the high cost of assisted living facilities or home health aides.
Managing Rising Costs
Retirement income doesn’t stretch as far as it once did, since everyday costs are on the rise for many seniors. The price of electricity has climbed nearly 30% over the past five years, and AARP predicts health insurance, groceries and smartphones will all cost more in 2026. For seniors living on a fixed income, maintaining a budget can be challenging.
Identifying tax benefits for seniors can ease financial strain. These savings can help fund important home safety upgrades to make aging in place safer and achievable.
New Senior Tax Deductions
As part of new legislation passed in 2025, many seniors may be eligible for an additional tax deduction of up to $6,000 for single filers and up to $12,000 for married couples filing jointly. This limited-time deduction is available whether you itemize or take the standard senior deduction.
Depending on your filing status and eligibility, your total deduction could be significantly higher when combined with the standard senior deduction. A senior who takes the new tax deduction and the standard deduction could reach $23,750 for single filers and up to $46,700 for married couples filing jointly, according to the Center for Retirement Research at Boston University.
By lowering your taxable income, these deductions can free up more room in your retirement budget and provide greater financial flexibility.
Itemized Over 65 Tax Deductions
Many seniors itemize their deductions to reduce their taxable income. A tax professional can help you determine the best choice for you. Here are some of the common itemized deductions for seniors.
Medical Expense Deductions
Seniors may deduct medical and dental expenses, which can be incredibly useful if you have a difficult health year. Medical expenses may be deductible if they exceed 7.5% of your adjusted gross income. Some types of medical expenses are:
- Doctor visits, hospital care, prescriptions
- Dental treatments and procedures
- Vision care
- Certain medically necessary home improvements
- Long-term care services
Medically necessary home modifications include adding grab bars, widening doorways or installing non-slip flooring. While a walk-in tub or shower can enhance comfort and increase home value, it’s typically not eligible for a medical deduction unless it was prescribed by a doctor.
Charitable Contribution Deductions
Charitable donations of cash or goods are often tax-deductible. To qualify, donations must be made to tax-exempt organizations, such as religious institutions, charities or nonprofit schools and hospitals.
Strategic giving can also reduce your taxable income and help preserve your savings. A financial planner can help you identify smart giving strategies to ease your tax burden.
Property Tax Credits and Relief Programs
To offset rising housing costs, many states offer property tax relief for seniors. Depending on where you live, you may qualify for a property tax exemption, freeze or credit.
While these initiatives often come with income limits and residency requirements, they can provide useful savings. Lower housing costs can make aging in place a fraction of the cost of assisted living.
Turning Tax Savings Into a Safer Bathroom
Falls are the leading cause of injury among older adults, and many of these accidents happen in the bathroom. While it’s disappointing to learn a walk-in tub may not always qualify as medically necessary, it remains a valuable investment in your safety and independence. Aging in place can save thousands in long-term care costs, making a one-time upgrade to a walk-in tub or shower a smart financial decision. Strategic tax planning can help reduce out-of-pocket expenses and free up funds to make your home safer and more comfortable.
Reinvesting your tax savings toward a Safe Step Walk-In Tub or Walk-In Shower enables you to age in place safely. Our walk-in tubs feature a low-threshold entry, built-in seating, grab bars and slip-resistant flooring for added stability. They are also equipped with therapeutic features to soothe aches and pains that happen as you age.
Ready to create a safer bathroom? Request your free quote from Safe Step today.
