Hollowtree

LTC Legislation Tracker

State LTC Payroll Taxes. Know Your Exposure.

Washington's WA Cares Fund is live. California, New York, and Minnesota are next. Use the tracker below to see where each state stands -- and estimate what your organization could owe.

Long-term care legislation

State-by-state status – updated July 2026

Interactive US map showing 7 states with active or in-design LTC legislation, 3 in high-level discussion, 17 in discussion, remaining states with no formal activity.AKALARAZCACODCFLGAHIIAIDILINKSKYLAMEMIMNMOMSMTNCNDNENMNVNYOHOKORPASCSDTNTXUTVAWAWIWVWYVTNHMACTRINJMDDE

Tap a state to view its status.

Hollowtree · Source: Trustmark legislative updates (July 2026)

Legend

State-by-State Status

More than a dozen states are actively pursuing or studying LTC payroll tax legislation. Click any row for details.

Last updated: July 2026. Sources include state legislative records, WA Employment Security Department, and AARP Public Policy Institute. This tracker is for informational purposes only and does not constitute legal or tax advice.

Don't Wait for the Mandate

Offering group LTC insurance today gives your employees an opt-out path from state payroll taxes — and adds a meaningful benefit to your package at no direct cost to the organization.

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Frequently Asked Questions

Which states have active LTC payroll taxes?+
As of July 2026, Washington is the only state with an active, collecting LTC payroll tax through the WA Cares Fund (0.58% of wages, benefits now available). California, New York, Illinois, Minnesota, and Pennsylvania have proposed legislation at various stages, while Massachusetts, Hawaii, Oregon, and several other states are conducting feasibility studies.
Can employees opt out of state LTC payroll taxes?+
In Washington, employees who purchased qualifying private LTC insurance before the program's deadline were eligible to opt out. SB 5291 (signed May 2025) now allows exemption rescission and supplemental LTC insurance products. Most proposed state programs — including Illinois (HB 4918), New York, and Pennsylvania — include similar opt-out provisions for workers with qualifying private coverage.
How much could my organization owe in LTC payroll taxes?+
It depends on your headcount and payroll in each affected state. Washington currently charges 0.58% of wages. Illinois and Pennsylvania have proposed 0.58%, New York about 0.50%, and Massachusetts is studying 0.68%. Rates across proposed programs range from 0.50% to 0.68%, some with employer-side contributions.
What should multi-state employers do to prepare?+
Conduct a state-by-state exposure analysis, review existing benefits for opt-out qualification, establish compliance tracking, and consider offering voluntary private LTC coverage as both a retention tool and a tax mitigation strategy. With more than a dozen states now exploring LTC mandates, early preparation is critical.
How does group LTC insurance help with payroll tax exposure?+
In states with opt-out provisions, employees who hold qualifying private LTC coverage can exempt themselves from the state payroll tax. Offering group LTC as a voluntary benefit gives employees an opt-out path while adding a meaningful benefit to your package.

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