Are Walk-In Tubs Tax Deductible?

Can I deduct my walk-in tub from my taxes?

You can deduct the price of a walk-in tub from your taxes as long as your tub is considered medically necessary, which would make it a medical expense. Otherwise, the IRS generally sees the installation of a walk-in tub as a capital improvement to your home since it becomes part of the property.

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Walk-in tubs as a medical necessity

“Medically necessary” means your doctor has prescribed an accessible tub to treat or ease a condition that makes bathing in a standard tub unsafe. In other words, it must be installed to alleviate or prevent a physical ailment (not just for general health or aesthetic reasons). Some instances where you might need a walk-in tub include:

• Being an older adult
• Having limited mobility
• Using a wheelchair
• Being at an increased risk for falls
• Having a medical condition where your balance or mobility is affected, such as multiple sclerosis, arthritis, diabetes or muscular dystrophy

How tax deductions for walk-in tubs work

To understand how this deduction works, you should learn about the 7.5% rule and have a good understanding of whether installing a walk-in tub would add value to your home.

How the 7.5% rule works

Under IRS rules, there’s an important threshold: You can only deduct the portion of your total medical expenses that exceeds 7.5% of your adjusted gross income (AGI) for the year.

1. Add up all your qualified medical expenses for the year, including the allowable portion of your walk-in tub cost.
2. Calculate 7.5% of your AGI. This is the “floor,” meaning only expenses above this amount are deductible.
3. Subtract this floor from your total medical expenses. The difference is what you can actually deduct on your tax return.

Impact of home value increase on deduction

If the tub increases your home’s value, you can only deduct the portion of the cost that’s above the value added. For example, if you spend $10,000 on a walk-in tub and it increases your home’s fair market value by $7,000, only the remaining $3,000 is deductible as a medical expense.

If you can demonstrate (typically via a contractor appraisal or tax assessor statement) that installing the walk-in tub did not add value to your home, you may be able to deduct 100% of the cost.

Author’s note

The 7.5% rule doesn’t limit how much of the tub cost is eligible; it sets the bar that your total medical expenses must clear before you can deduct anything at all.

Steps to claiming the deduction

If you hope to claim your walk-in tub as a deduction on your taxes, you’ll need to understand the IRS’ rules and make sure you have the proper documentation to support your claim if needed.

IRS Publication 502 and official guidance

In its publication “Topic No. 502, Medical and dental expenses,” the IRS explains that tax filers who itemize their deductions can deduct eligible medical expenses for themselves, their spouse and their dependents during the taxable year, provided they follow the 7.5% rule.

To deduct your walk-in tub or other eligible medical expenses, you’ll itemize your deductions on Line 1 of Schedule A (Form 1040). You won’t submit receipts with your tax return, but you must keep them on file.

Documentation checklist

Before you file your taxes, you’ll need to make sure you have all relevant paperwork, including medical documentation, receipts and invoices. Documentation may include:

• Your doctor’s prescription and/or letter of medical necessity specifying your diagnosis or condition, as well as why the walk-in tub is necessary and how it will help (e.g., reduce risk of falls or improve mobility)
• Purchase invoice for the walk-in tub
• Installation bills (plumbing, electrical, remodeling, etc.)
• Appraisal reports showing your home’s value before and after walk-in tub installation
• Any follow-up medical letters

These are all crucial in case of an IRS audit.

» MORE: Tax deductions for homeowners

How much do walk-in tubs cost?

A standard walk-in tub costs anywhere from $2,000 to $5,000 before installation. More premium models can run up to $20,000. The cost differs depending on additional features you may want, such as jets, heated backrests or light therapy.

Installing a walk-in tub can cost between $700 and more than $3,000. This can also include the cost of buying a new water heater.

Brandon Walker, construction manager at ASAP Restoration in Arizona, said a complex installation could cost as much as $8,000. Financing a walk-in tub takes some planning, but it’s possible.

» MORE: Financial assistance for walk-in tubs

Medicare, Medicaid and other funding options

Unfortunately, a walk-in tub isn’t on the list of Medicare’s durable medical equipment (DME) and isn’t covered under Medicare parts A and B. It doesn’t hurt, though, to ask your Medicare Advantage plan about coverage or reimbursement.

Walk-in tubs aren’t covered under medical insurance, but your state program may provide financial help under Medicaid if you qualify.

Don’t overlook potential funding resources in your local area through nonprofits and other community-based organizations. And if you’re a military veteran, see if your benefits through the Department of Veterans Affairs could help you pay for a walk-in tub or related renovations.

Bottom line

Paying for a walk-in tub can be costly. With the amount of money you might pay for it, it’s worth checking to see if you can deduct the price of your tub from your annual taxes. However, keep in mind that the tax deduction might not cover the full expense.

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