Is Independent Living Tax Deductible?

Unreimbursed medical expenses that exceed 7.5% of your adjusted gross income (AGI) are deductible regardless of where you live.

Examples of qualifying medical expenses for tax deductions include:^[01]

• Routine medical and dental exams
• Bandages
• Artificial teeth
• Eye exams, eyeglasses, and contact lenses
• Diagnostic services
• Hearing aids
• Health insurance policy premiums
• Prescriptions
• Medically necessary procedures
• Oxygen and oxygen equipment
• Home health nursing care services
• Physical or behavioral therapy (as part of medical treatment)
• Wheelchairs and crutches

This isn’t an exhaustive list. If you’re unsure whether an expense would qualify for the medical expense deduction, work with a tax professional to learn more.

Medically necessary home modifications, such as grab bars in showers or hand railings on steps, are considered deductible medical expenses. Modifications whose primary purpose is cosmetic aren’t deductible.^[01]

Other deductible home modifications include:^[01]

• Widening doorways or hallways to make them easier to navigate
• Adding railing or support bars to bathrooms or hallways
• Lowering countertops to make them accessible for wheelchair users
• Relocating electrical outlets and light switches to make them accessible
• Modifying fire alarms, warning systems, and smoke detectors
• Modifying hardware on doors

Can you afford independent living?

If you’re 65 or older and meet certain income limits, you may be able to claim the credit for the elderly or the disabled. The credit ranges between $3,750 and $7,500.^[02] The income limit for a single senior in 2025 is an AGI of $17,500, or a maximum of $5,000 in nontaxable income sources such as Social Security, disability income, pensions, or annuities.^[03,04]

While there isn’t a federal tax credit or deduction for independent living, some states offer tax credits and deductions for seniors who live independently. The list below isn’t exhaustive. Contact your Area Agency on Aging (AAA) to see what tax benefits your state or local government may offer.

California property tax postponement

California allows eligible homeowners to postpone paying the current year property taxes on their primary residence through its property tax postponement program. The taxes eventually need to be paid, and funding is limited, so not everyone who qualifies and applies for this benefit each year will be approved.

To qualify, homeowners must:^[05]

• Be at least 62 years of age, or blind, or disabled
• Own and occupy the property as their principal place of residence (floating homes, and house boats aren’t eligible)
• Have a total household income of $53,574 or less
• Have at least 40 percent equity in the property
• Not have a reverse mortgage on the property

Colorado senior housing income tax credit

Colorado’s senior housing income tax credit helps low-income seniors save on their taxes.

Residents must:^[06]

• Be 65 years of age or older
• Have a federal AGI equal to or less than $75,000
• Not have claimed the Colorado homestead property tax exemption

The credit is greatest for people with an AGI that’s $25,000 or less. For every $500 of AGI above $25,000, the amount of the credit is reduced by $10.

Maryland independent living tax credit for home modifications

Maryland provides qualifying residents who’ve added accessibility features to their homes with the independent living tax credit for home modifications. The credit can apply to 50% of the cost of renovations up to $5,000.^[07] Residents have to apply for the independent living tax credit, and the amount may be reduced if the demand is greater than one million dollars per year across the state.

Examples of eligible home modifications include the following:^[07]

• Grab bars and reinforced walls to support them
• Handrails
• Roll-in shower/tub
• Slip-resistant flooring
• Accessible door hardware

Massachusetts senior circuit breaker tax credit

If you live in Massachusetts and still pay rent or a mortgage, you may be eligible for the Massachusetts senior circuit breaker tax credit, which can provide up to a $2,590 refundable credit. To qualify, you must be 65 or older by December 31 of the tax year, own or rent in Massachusetts, and the residence for this credit must be your primary residence.

The following income limits apply for tax year 2024:^[08]

• $109,000 for married couples filing jointly
• $91,000 for a single person filing as head of household
• $72,000 for a single person who isn’t filing as head of household

Additionally, your total real estate value can’t exceed $1,172,000.^[08]

Minnesota senior citizens property tax deferral program

Minnesota’s property tax deferral for senior citizens allows people 65 years and older to pay lower property taxes overall and to pay a portion of their property taxes over time each year. Seniors who qualify pay 3% of the total annual household income, while the state pays the remaining 97% of property tax as a loan. The interest rate varies but doesn’t exceed 5%.^[09] When the home is sold or the deferral is voluntarily canceled, the loan plus interest must be repaid.

Residents must also:^[09]

• Have a household income is $96,000 or less
• Have owned and lived in their home for the last 5 years
• Not have a reverse mortgage, a life estate, or any state or federal liens on their property
• Not have other liens against the property that exceed 75% of the estimated market value

New York enhanced STAR (School Tax Relief) exemption

New York’s enhanced STAR exemption lowers the tax liability for qualifying senior homeowners by exempting a portion of the value of their homes from the school tax.

To qualify, homeowners must:^[10]

• Be 65 or older by the end of the calendar year in which the exemption begins, unless they are the spouse or sibling of an owner who is 65 or older by that time
• Own and occupy the residence
• Have a combined income of less than $107,300 (for the owner and spouse who reside at the property)

Oregon senior and disabled property tax deferral program

In Oregon, the property tax deferral for disabled and senior citizens enables qualified residents to pay their property taxes over time through a loan from the state. For seniors who qualify, a lien is placed on their property and the Department of Revenue is a security interest holder.

Eligible senior homeowners must:^[11]

• Be 62 years or older, or disabled and receiving or eligible to receive federal Social Security Disability Income (SSDI) benefits
• Have homeowners insurance that covers fire and other casualties
• Have a household income under $60,000
• Have a net worth less than $500,000
• Have both owned and lived on the property for at least the last five years
• Own a home whose value is less than the limit allowed by state law
• Own the property and have a recorded deed in their name
• Not have a reverse mortgage on the property

Wisconsin homestead credit for seniors

Wisconsin provides the homestead tax credit to low-income seniors. Legal state residents who occupied and owned or rented a home, apartment, or other dwelling subject to Wisconsin property taxes may be eligible for the homestead credit if they or their spouse:^[12]

• Are 62 years of age or older at the end of the calendar year
• Are disabled
• Had earned income during the year

Expert advice for affordable independent living

Independent living offers a range of benefits and services — including housekeeping, social activities, and sometimes meals — to support a maintenance-free lifestyle. These added benefits make it more expensive than renting a regular senior apartment.

In 2025, the national median cost of rent and services in an independent living community is $3,145, while the national median cost of a senior apartment is $1,417 per month.^[13,14]

It makes sense to save as much money as possible, especially since the cost of care usually increases with age. Many seniors use existing assets, including retirement plans, to pay for independent living. Additionally, you might consider selling your home or using the funds from a life insurance policy to help cover the cost of independent living.

If you’re not sure what options are available nearby, reach out to a Senior Living Advisor at A Place for Mom. They’ll help you find a community that fits your needs, lifestyle, and budget — all at no cost to you.