Texas Medicaid Income Limits 2026: Complete Guide to Eligibility

Getting Medicaid in Texas can feel confusing, but we’re here to make it simple. This guide shows you exactly how much money you can make and still qualify for Texas Medicaid in 2026.

We’ll explain the income limits, asset rules, and how to apply—all in easy-to-understand language.

2026 Key Updates You Need to Know

Here are the most important changes for Texas Medicaid in 2026:

• Nursing Home & Waiver Income Limit: $2,982/month for single people (up from $2,901 in 2025)
• Regular Medicaid Income Limit: $994/month for single people (up from $967 in 2025)
• Asset Limit: Still $2,000 for single applicants
• Home Equity Protection: You can keep a home worth up to $752,000
• Community Spouse Allowance: Your spouse can keep up to $162,660 in assets
• Spousal Monthly Income: Your spouse can keep up to $4,066.50/month

These income limits are specific to Texas. If you’re comparing benefits across states or planning to move, check our complete guide to medicaid income limits 2026 by state to see how Texas compares to other states and find the best coverage for your situation.

Texas Medicaid Income Limits 2026

Texas has different income limits depending on which Medicaid program you need. Here’s what you need to know:

Nursing Home Medicaid & Waiver Programs

Who’s Applying	Monthly Income Limit
Single person	$2,982
Both spouses applying	$5,964 combined
One spouse applying	$2,982 for applicant

Regular Medicaid (MEPD)

This program is for elderly and disabled people who don’t need nursing home care yet.

Who’s Applying	Monthly Income Limit
Single person	$994
Both spouses applying	$1,491 combined
One spouse applying	$1,491 for applicant

Important: To get Regular Medicaid, you must receive SSI (Supplemental Security Income). If you qualify for SSI, you automatically qualify for Texas Medicaid.

Asset Limits for 2026

Besides income, Texas Medicaid also looks at what you own. Here are the limits:

Basic Asset Limits

• Single person: $2,000
• Married couple (both applying): $3,000

If Your Spouse Isn’t Applying

When only one spouse needs Medicaid:

• The applicant can have $2,000 in assets
• The healthy spouse can keep between $32,532 and $162,660

This protection is called the Community Spouse Resource Allowance (CSRA). It helps make sure your spouse doesn’t lose everything when you need long-term care.

What Counts as Income?

Countable Income (counts toward your limit):

• Wages from work
• Social Security benefits
• Pension payments
• IRA or 401(k) withdrawals
• Stock dividends
• Alimony

Non-Countable Income (doesn’t count):

• Medicare premium payments
• VA Aid & Attendance benefits (the extra amount above basic VA pension)

What Counts as Assets?

Countable Assets (count toward your $2,000 limit):

• Cash and bank accounts
• Stocks and bonds
• Investment accounts
• Rental property
• Second homes

Non-Countable Assets (don’t count):

• Your primary home (worth up to $752,000)
• One car (any value)
• Personal belongings and furniture
• Prepaid funeral plans
• Irrevocable burial trusts

Protecting Your Spouse’s Income

Texas protects the income of healthy spouses. Here’s how it works:

If your spouse’s monthly income is less than $4,066.50, you can transfer some of your income to them. This brings their total income up to $4,066.50 without affecting your Medicaid eligibility.

Example: Your spouse earns $2,000/month. You can transfer $2,066.50 to them each month to reach the $4,066.50 protection level.

What If You Make Too Much Money?

Don’t worry—you still have options if your income is over the limit.

Qualified Income Trust (Miller Trust)

If you make more than $2,982/month, you can set up a special trust. Your extra income goes into this trust, and it won’t count toward your Medicaid income limit anymore.

Example: You get $3,500/month in income. You can put $518 into a Miller Trust each month. Now you only have $2,982 counting toward Medicaid, so you qualify.

Spend Down Your Assets

If you have more than $2,000 in assets, you can spend down to qualify. Here are allowed ways to spend:

• Pay off debts
• Fix up your home
• Install wheelchair ramps or stair lifts
• Prepay funeral expenses
• Buy a more reliable car

Warning: You must pay fair market value. Giving money away as gifts will cause problems (see the look-back period below).

The 5-Year Look-Back Period

This is very important: Texas checks all your financial transactions from the past 5 years when you apply for Nursing Home Medicaid or Waiver programs.

If you gave away money or sold things for less than they’re worth during those 5 years, you’ll face a penalty period where you can’t get Medicaid.

Example: You gave your daughter $20,000 two years ago. This will create a penalty period, even though the IRS allows gift tax exemptions.

Good news: The look-back rule does NOT apply to Regular Medicaid (MEPD).

Three Types of Texas Medicaid Programs

1. Nursing Home Medicaid

• Who it’s for: People who need skilled nursing care in a facility
• Income limit: $2,982/month
• Asset limit: $2,000
• Coverage: Full nursing home care in certified facilities
• Availability: Everyone who qualifies gets coverage

2. Medicaid Waivers (STAR+PLUS)

• Who it’s for: People who need nursing home-level care but want to stay home
• Income limit: $2,982/month
• Asset limit: $2,000
• Coverage: Assisted living, home care, adult day care
• Availability: Limited spots, may have waiting lists

3. Regular Medicaid (MEPD)

• Who it’s for: Elderly and disabled people who need help with daily activities
• Income limit: $994/month
• Asset limit: $2,000
• Coverage: Personal care, homemaker services, day care
• Requirement: Must receive SSI

Your Personal Needs Allowance

If you move to a nursing home, you can keep $75 per month for personal items like:

• Haircuts
• Snacks
• Toiletries
• Clothing

Veterans may get additional allowances.

How to Apply for Texas Medicaid

You have three ways to apply:

1. Online: Go to YourTexasBenefits.com
2. By phone: Call 1-877-541-7905 or dial 2-1-1
3. In person: Visit your local HHSC office

Documents You’ll Need

Gather these before you apply:

• Social Security card
• Bank statements (last 3 months)
• Proof of income (pay stubs, award letters)
• Health insurance cards
• Medical records showing you need care

Retroactive Coverage

You might qualify for coverage up to 3 months before your application date. This helps if you have unpaid medical bills from before you applied. Ask your HHSC representative about retroactive eligibility.

Important Contact Numbers

• General Medicaid Help: 1-800-335-8957 (Mon-Fri, 7am-7pm Central)
• Apply or Check Status: 1-877-541-7905 or 2-1-1
• Appeals: 1-800-414-3406
• Report Fraud: 1-800-436-6184
• Medical Transportation: 1-877-633-8747

Estate Recovery Warning

After you pass away, Texas may try to recover Medicaid costs from your estate. This often includes your home.

What this means: If you don’t plan ahead, your home might be sold to pay back the state for your Medicaid benefits instead of going to your children.

Solution: Talk to a Medicaid planning attorney before applying. They can help protect your home and other assets for your family.

Tips for Applying Successfully

Do This:

• Apply as soon as you know you need care
• Keep all financial records organized
• Be completely honest on your application
• Ask about retroactive coverage if you have unpaid bills
• Get help from a Medicaid planner if your situation is complicated

Don’t Do This:

• Give away money or assets within 5 years of applying
• Hide income or assets
• Sell property for less than it’s worth
• Wait until the last minute to apply

Who Can Help You

If your financial situation is complicated, consider getting help from:

• Medicaid Planning Professionals: They specialize in helping people qualify
• Elder Law Attorneys: They can protect your assets legally
• HHSC Representatives: They can answer questions about your application

Quick Reference Chart

Program	Income Limit (Single)	Asset Limit	Look-Back Period
Nursing Home Medicaid	$2,982/month	$2,000	5 years
Medicaid Waivers	$2,982/month	$2,000	5 years
Regular Medicaid (MEPD)	$994/month	$2,000	None

Final Thoughts

Texas Medicaid can help pay for long-term care, but you need to meet strict income and asset rules. The good news is that even if you’re over the limits, options like Miller Trusts and spend-down strategies can help you qualify.

The 2026 income limits went up because of the 2.8% Social Security cost-of-living increase. This means more Texans can now qualify for help with nursing home care and home health services.

Remember: Medicaid planning takes time. Don’t give away assets or try to hide income—this will hurt you during the look-back period. Instead, work with professionals who can help you qualify legally while protecting what you can for your family.

Disclaimer: This information is current as of January 2026. Medicaid rules are complex and your situation is unique. Always verify current requirements with Texas HHSC before applying, and consider consulting with a Medicaid planning professional for personalized advice.