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.

State-by-State Status

Seven states are actively pursuing or studying LTC payroll tax legislation. Click any row for details.

Last updated: April 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 2026, Washington is the only state with an active, collecting LTC payroll tax through the WA Cares Fund (0.58% of wages). California, New York, Minnesota, and Pennsylvania have proposed legislation at various stages.
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. Most proposed state programs 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. Proposed programs in other states are evaluating rates between 0.3% and 1.0%, 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.
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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