If you’ve noticed a new deduction coming out of your paycheck in Washington State, you’re not alone. The WA Cares Fund, often called the state’s long-term care deduction, has sparked major debate among workers. On paper, it sounds like a safety net for future care needs. But in reality, not every worker paying into the system will benefit equally… or at all.
Washington’s long-term care deduction is part of the WA Cares Fund, a mandatory program funded by a payroll tax. Workers contribute 0.58% of their wages with no income cap, meaning higher earners pay significantly more over time. In return, eligible participants can access up to about $36,500 in lifetime long-term care benefits starting in 2026. The program aims to help cover costs like in-home care, assisted living, and caregiving support. While the idea is appealing, the structure creates uneven outcomes depending on your situation.
