Are nursing home costs tax deductible?

Yes, if the stay is medically necessary. Nursing home costs (room, board and care) are deductible as medical expenses on Schedule A to the extent total medical expenses exceed 7.5% of adjusted gross income. Save every receipt and ask the facility for an itemised annual statement.

How fast do assets get spent down?

At a 2026 projected national median of roughly $112,000–$116,000 per year, a $400,000 nest egg lasts under 4 years. This is why most long-term residents eventually qualify for Medicaid.

Do nursing home prices go up after you move in?

Yes. Most homes raise rates 3–6% annually, usually in January. Your contract should disclose renewal terms — read it before signing.

Does Medicare pay for nursing home care?

Only for short-term skilled rehab after a qualifying hospital stay, up to 100 days. It does not pay for long-term custodial care.

What is the cheapest way to pay for a nursing home?

For most people, Medicaid after spend-down is the cheapest long-term option. Plan 5 years ahead with an elder-law attorney if you want to protect assets without triggering the Medicaid look-back penalty.

Costs & funding·US

How much does a nursing home cost in the United States in 2026?

By Nursing Home Match editorial team 3 min read

Fanned US dollar bills beside a calculator and a folded medical invoice, representing the median monthly cost of a nursing home in the United States — National median nursing home cost crossed $100,000 per year in 2024 — and varies more than 3× between states.

Nursing home care in the US is one of the largest expenses a family will ever face. National medians crossed $100,000 a year in 2024 and are still climbing 4–6% annually. By 2026, a semi-private room is approaching $9,500 per month in many markets. Prices vary by more than 3× between states, and the quoted rate is only part of the story. Here's what to expect, what is included, and how most families actually pay the bill.

2024–2026 national median costs (Genworth Cost of Care Survey)

Semi-private room: about $9,000 per month ($108,000 per year) in the 2024 survey, trending toward $9,400–$9,700 per month by 2026. Private room: about $10,300 per month ($124,000 per year) in 2024, trending toward $10,700–$11,100 per month by 2026. Costs have grown 4–6% per year for the past decade, driven by labor shortages, higher nurse wages, and occupancy swings.

Cheapest and most expensive states in 2026

Cheapest: Texas, Missouri, Oklahoma, Louisiana, and Arkansas — semi-private medians around $5,800–$7,000 per month. Most expensive: Alaska ($35,000+ per month), Hawaii, Connecticut, New York, Massachusetts, and California — semi-private medians above $13,000 per month. Urban cores are typically 20–40% more expensive than rural areas within the same state.

What's included in the daily rate

Room, board, meals, basic nursing care, housekeeping, laundry, and standard activities. Most homes charge extra for: incontinence supplies beyond a base allowance, beauty/barber services, cable TV or phone in some homes, non-emergency transportation outside scheduled medical trips, and private-duty companions. Memory-care wings often add a $1,000–$2,000 per month premium.

Who actually pays the bill

Medicaid pays for about 62% of US nursing home residents once they have spent down to their state's asset limit. Around 22% pay out-of-pocket (private pay). Medicare covers only short-term skilled stays after a hospital discharge — roughly 10–14% of all nursing-home days. Long-term care insurance, life-settlement and annuity riders, and the VA cover the remainder.

Medicare vs Medicaid for long-term stays

Medicare covers up to 100 days per benefit period after a qualifying hospital stay, with no coverage after day 100. Medicaid covers ongoing custodial care indefinitely in a Medicaid-certified facility, but only after you meet strict income and asset tests. Most long-term residents eventually spend down and transition to Medicaid.

Ways to reduce the cost

Apply for Medicaid early if you are likely to spend down. Compare semi-private vs private rooms — semi-private is typically 10–15% less. Choose a Medicaid-certified facility from day one so you do not have to move later. Ask about non-profit, county-run, and religiously affiliated homes, which often have lower base rates. Consider a Continuing Care Retirement Community (CCRC) if you want to lock in future rates.

Hidden costs to watch for

Admission or community fees ($1,000–$5,000 one-time). Security deposits (1–2 months). Annual rate increases of 3–6% written into the contract. Charges for extra therapy minutes beyond what insurance covers. Private room upgrades when a roommate changes.

Frequently asked questions

Authoritative sources

The figures and rules in this guide are drawn from the following official and independent sources. Open any link to verify the latest published numbers.

Cost of Care Survey 2024
Genworth
Nursing Home Data Compendium
CMS.gov
Long-term care planning
AARP
Medical and dental expenses (Publication 502)
Internal Revenue Service

About this guide

Written and reviewed by the Nursing Home Match editorial team. We update guides at least annually and verify every figure against the official sources listed above. This guide is general information, not personal, medical, financial or legal advice. Always confirm details on Medicare.gov Care Compare (United States) or My Aged Care (Australia), or speak to a qualified adviser before making decisions.