Medicaid income limits depend on your state and family size, not a single national number

There is no single income cutoff for Medicaid across the United States. Each state sets its own limit based on the federal poverty level, and most states allow you to earn more than the poverty line itself and still may have access to. A single adult in one state might may have access to at $1,500 per month while the same person in another state qualifies at $2,000 per month.

Your state's Medicaid program will tell you the exact monthly or annual income limit when you contact them or start an application. The limit changes each year because the federal poverty level changes. If you are close to the limit, the only way to know whether you may have access to is to check with your state program directly — do not assume you are over based on a number you find online.

Some states use a simpler calculation: they allow you to earn up to a percentage of the federal poverty level, often 138% or 200%. Other states use a more complex method that factors in your expenses. A few states have different limits for different groups — for example, parents might have a higher limit than childless adults in the same state.

Key Takeaways

  • Your state, not the federal government, sets the income limit, and it varies by state and family size.
  • Most states allow you to earn more than the federal poverty level and still may have access to for Medicaid.
  • Income limits change each year, so a number that was correct last year may not be correct now.
  • You must contact your state Medicaid program or local office to learn the current limit for your household size.
  • Some states count only gross income, while others subtract certain expenses before deciding whether you may have access to.

How states calculate the income limit

Most states peg their Medicaid limit to the federal poverty level, which the U.S. Department of Health and Human Services updates every year. For 2024, the federal poverty level for a single adult is $14,600 per year, or about $1,217 per month. For a family of three, it is $30,000 per year, or about $2,500 per month.

A state might say "we cover people up to 138% of the federal poverty level." That means a single adult could earn up to $20,148 per year (138% of $14,600), or about $1,679 per month. A family of three could earn up to $41,400 per year, or about $3,450 per month. Other states use 100%, 150%, 200%, or a different percentage altogether.

Some states also subtract certain costs from your income before checking the limit. These deductions might include child care expenses, medical costs, or work-related expenses. If your gross income is $2,200 but you have $400 in child care costs, the state counts only $1,800 toward the limit. This is called income disregards or deductions, and the rules vary widely by state.

What counts as income for Medicaid

Medicaid counts most money you receive regularly: wages from a job, self-employment income, Social Security, unemployment benefits, child support, and pension payments. It also counts interest from a bank account and rental income if you own property.

Some income does not count. Supplemental Security Income (SSI) is usually not counted in the same way as other income in SSI-linked Medicaid programs. Tax refunds, one-time gifts, and money from selling an asset (like a car) typically do not count as ongoing income. Food stamps and housing vouchers do not count. The rules for what is excluded vary by state and by which Medicaid program you are applying to, so ask your state program which types of income they count.

Your state will ask you to report your income for the past month or the past three months, depending on their process. They usually want recent pay stubs, a letter from your employer, or a tax return to verify what you said. If you are self-employed, you may need to provide business records or tax documents.

Income limits for different family sizes

The limit increases as your family size grows. A state that covers people up to 138% of poverty will have one limit for a single person, a higher limit for a couple, and an even higher limit for a family of four. The federal poverty level itself increases by a set amount for each additional family member.

For 2024, the federal poverty level is roughly $14,600 for one person, $19,720 for two people, $24,860 for three people, and $30,000 for four people. If your state uses 138% of poverty, the limits would be approximately $1,679, $2,272, $2,862, and $3,450 per month respectively. Your state Medicaid office can give you the exact limits for your family size.

Some states count only the people living in your household who are related to you or dependent on you. Others have different rules. If you are unsure whether someone in your home should be counted as part of your family for Medicaid purposes, ask your state program before you apply.

How to find your state's current income limit

The fastest way is to call your state Medicaid office directly. You can find the phone number by searching "[your state] Medicaid" or by visiting your state health department website. Many states also have online income calculators where you enter your income and family size and get an immediate answer.

You can also contact your local community action agency, a 211 helpline (dial 2-1-1), or a local hospital's financial assistance office. These organizations often have current income limits for your area and can tell you whether you likely may have access to. Some community health centers also help people understand Medicaid rules.

If you are applying for Medicaid, the application itself will show you the income limit for your state and family size. You do not have to guess — the program will tell you the number they use to decide.

What happens if your income changes

If you start earning more money and go over the limit, you will lose Medicaid coverage. Your state will tell you when this happens — usually they give you a notice saying your coverage ends on a specific date. You typically have at least 10 days' notice, though some states give more.

If your income drops back below the limit, you can reapply. Some states let you reapply right away; others require you to wait a certain amount of time. When you reapply, bring recent pay stubs or other proof of your new income level.

If you receive a raise or a new job, report it to your Medicaid program as soon as you know about it. Some states have a grace period where you can earn a little over the limit for a month or two without losing coverage, but this varies. It is better to report the change yourself than to wait for the state to discover it.

Income limits for specific Medicaid groups

Some states have different income limits for different groups of people. Parents and caretakers might have a higher limit than childless adults. Pregnant people might have a different limit than other adults. Elderly people and people with disabilities might may have access to under a separate program with its own rules.

If you are applying for Medicaid as a parent, a pregnant person, a child, or a person with a disability, ask your state program which limit applies to you. The limit for your group might be higher or lower than the general adult limit.

Some states also run special programs for specific situations — for example, Medicaid for people who are working but have low income, or Medicaid for people transitioning off SSI. These programs may have different income rules. Your state Medicaid office can explain which programs you might be able to use.

Frequently Asked Questions

If I earn $100 over the limit, can I still may have access to?

No. Medicaid income limits are firm cutoffs in most states. If your income is even $1 over the limit, you do not may have access to. Some states have small grace periods or allow deductions that might bring you under the limit, but you cannot assume this. Contact your state program to ask whether any deductions or exceptions apply to your situation.

Does my spouse's income count if we are married?

Yes, in most cases. Medicaid counts the income of your spouse if you are legally married and living together. If you are separated or divorced, your ex-spouse's income does not count. If you are married but your spouse does not live with you, ask your state program whether their income counts — the rules vary.

What if I work part-time and my hours change every week?

Most states average your income over the past month or three months to smooth out weekly changes. If you earned $1,500 one month and $1,800 the next, they might count $1,650 as your average. Bring recent pay stubs covering several weeks so the state can see the pattern. If your hours are very irregular, ask whether the state will use your lowest recent month or an average.

Do I have to report income from a side job or gig work?

Yes. Medicaid counts all income, including money from gig work, freelancing, or a second job. You must report it even if you are paid in cash or do not receive a formal 1099 form. Keep records of what you earn so you can show the state if they ask.

What if I am unemployed but expecting a job to start soon?

Report your current income, which is zero if you are not working. Once you start the job, report the new income to your state program. Do not count income you expect to earn in the future — only report what you are actually earning now.