A New York Long Term Care Payroll Tax May Be Coming Soon
Long Term Care
If passed, an assembly bill will establish the New York Long Term Care Trust Program.
Washington became the first state to implement a state-run long term care (LTC) benefit program funded through a 0.58% payroll tax known as WA Cares. Residents began contributing to the fund in 2023 and as of July 1, 2026, eligible individuals can use their benefits to obtain services like in-home caregiving and meal delivery. The WA Cares program serves as a test case for the rest of the U.S. as the cost of care continues to rise.1
Long Term Care Insurance Provides Options
There are many ways to pay for care when you need it and where you’d like to receive it.
If successful, other states may model similar programs to WA Cares. Notably, New York could be implementing a similar program in the coming year. A bill has been proposed to establish the New York Long Term Care Trust Program similar to the WA Cares program. There are still many unknowns, but here’s what we know:
- The Program would provide LTC services to eligible residents and cover services such as adult day care, nursing home care, transportation, or home care.
- The proposed initial benefit is $200 per day (subject to annual adjustments for inflation)
- The proposed lifetime benefit would be limited to 365 days, initially equivalent to $73,000 (365 x $200)
- The program would be funded by a mandatory payroll tax
The proposed payroll tax rate is currently unknown, but certain individuals may be able to apply for exemptions.
Who can apply for exemptions3:
- Those with existing private LTC insurance
- Certain disabled veterans
- Military spouses or domestic partners
- Temporary foreign workers
- Primary residents outside New York
What you can do now
To apply for an exemption based on maintaining private LTC insurance, coverage must be effective no later than January 1st of the year in which the New York LTC Trust Program takes effect. So, if the Program is established anytime in 2027, LTC insurance must be effective no later than January 1, 2027.
Talk with an LTC Advisor to learn more while you still have options.
Read the bill here.
1AARP Report Finds Long-Term Care Costs Outpacing Americans’ Incomes. AARP. www.aarp.org/caregiving/financial-legal/long-term-care-affordability-report, June 11, 2026.
2The evergreen model for long-term care: A state-level strategy for a persistent social policy problem. Niskanen Center. www.niskanencenter.org/the-evergreen-model-for-long-term-care-a-state-level-strategy-for-a-persistent-social-policy-problem, May 13, 2025.
3Assembly Bill A1499. New York State Senate. www.nysenate.gov/legislation/bills/2025/A1499
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