The short version
- Most states let a single applicant keep about $2,000 in countable assets for nursing home Medicaid.
- A spouse who stays home can keep $32,532 to $162,660 in 2026, depending on the state (CMS).
- The home (up to the state's equity limit), one car, personal belongings and certain burial funds usually don't count.
- Spending down on care, debts and exempt assets is allowed. Giving money away in the 60 months before applying is not.
When a parent needs nursing home care, the first Medicaid question families ask is almost always about money: how much can Mom keep? The answer is smaller than most people expect for a single person, and larger than most expect for a married couple.
How much money can you have and still qualify for Medicaid?
In most states, a single person applying for nursing home Medicaid can keep about $2,000 in countable assets. A few states set the limit higher. Everything above the limit has to be spent down, converted to an exempt asset, or protected through planning before Medicaid will pay. Sources: KFF 2026 Medicaid eligibility survey and CMS 2026 standards.
Income is tested separately. In states with an income cap, the 2026 limit is $2,982 a month, which is 300% of the $994 SSI benefit (CMS). People over the cap can usually still qualify by sending the excess into a Qualified Income Trust, also called a Miller trust. Once someone is on Medicaid, most of their income goes to the nursing home each month.
What counts and what doesn't
| Usually counts | Usually exempt |
|---|---|
| Checking, savings and money market accounts | The home, up to the state's equity limit, if the applicant or a spouse intends to live there |
| CDs, stocks, bonds and mutual funds | One car |
| IRAs and 401(k)s in many states | Personal belongings and household goods |
| Cash value of life insurance above a small limit | Irrevocable prepaid funeral and burial plans |
| Second homes, land and rental property | Property used in a business, in some states |
The home equity limit in 2026 is $752,000 in most states and up to $1,130,000 in others; California has no limit (CMS). It doesn't apply when a spouse or a dependent child lives in the home. Each state's figure is on its cost-of-care page under "Medicaid in [state]".
What a spouse at home can keep
A spouse who stays at home, called the community spouse, keeps far more than $2,000. In 2026 the community spouse resource allowance is at least $32,532 and at most $162,660, depending on the state's rule (CMS). The couple's home, a car and the community spouse's own income are protected too, and the community spouse may receive part of the applicant's income if their own is low.
The rules are detailed in Spousal Impoverishment Protections.
How to spend down without a penalty
A spend-down means using countable assets for things of fair value until you're under the limit. Medicaid looks back 60 months at every transfer; gifts and below-value sales inside that window start a penalty period (CMS). Spending on yourself, your care and your exempt assets doesn't.
- Paying the nursing home, medical bills and debts, including a mortgage or credit cards
- Repairs or accessibility changes to the home
- An irrevocable prepaid funeral and burial plan
- Replacing an old car, or buying needed clothing, hearing aids or household items
- For a married couple, a Medicaid-compliant annuity (see crisis planning)
An example
A widow has $60,000 in savings, a paid-off home and $2,100 a month in Social Security and pension income. To qualify in a $2,000 state, she needs to bring countable assets down by $58,000. Paying her first months of nursing home care privately, at about $9,581 a month for a semi-private room nationally (CareScout 2025), and buying a prepaid funeral would get her there in roughly six to eight months without a penalty. Her home stays exempt while she intends to return, but it may face estate recovery after her death.
An elder-law attorney can often protect more, especially for married couples. The earlier the plan starts, the more options there are; see advance Medicaid planning.
Common questions
How much money can you have and still qualify for Medicaid?
In most states a single nursing home Medicaid applicant can keep about $2,000 in countable assets. A spouse at home can keep $32,532 to $162,660 in 2026, depending on the state.
Does my house count toward Medicaid's asset limit?
Usually not, if you or your spouse intend to live there and your equity is under your state's limit, which is $752,000 to $1,130,000 in 2026. California has no limit.
Can I give money to my children to qualify for Medicaid?
Gifts made within 60 months of applying can trigger a penalty period during which Medicaid won't pay. Spending on your own care, debts and exempt assets is allowed.
What is the Medicaid income limit for nursing home care in 2026?
In income-cap states the limit is $2,982 a month. People over it can usually still qualify through a Qualified Income Trust, also called a Miller trust.