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. 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.

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, then 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, then you can deduct 100% of the cost.

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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 has to 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
• Being a wheelchair user
• 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 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.

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

Before you do anything with your taxes, make sure you have documentation.

1. Get medical documentation: Your doctor’s prescription or letter of medical necessity should specify: your diagnosis or condition, why the walk-in tub is necessary and how it will help (e.g., reduce risk of falls or improve mobility)
2. Keep all receipts and invoices: Keep the purchase invoice for the walk-in tub, installation bills (plumbing, electrical, remodeling), appraisal reports showing value before and after installation and any follow-up medical letters. These are all crucial in case of an IRS audit.
3. Claim the deduction on your return: Itemize your deductions on Line 1 of Schedule A (Form 1040). You don’t submit receipts with your tax return, but you must keep them on file.

» 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 from $700 to over $3,000. This can also include the cost of buying a new water heater. Brandon Walker, superintendent at ASAP Restoration in Phoenix, 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.

If you meet the criteria for a walk-in tub tax deduction, you can take more comfortable and safe baths and decrease the amount of your taxable income.

Bottom line

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

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