Florida LTC Medicaid Income Cap

As of January 2026, the income cap for Florida's long-term care Medicaid programs is $2,982 per month, up from $2,901 in 2025. That single figure applies to both the Institutional Care Program, which helps pay for nursing home costs, and the Medicaid Waiver program, which helps pay for home health care or assisted living. If your gross income from all sources exceeds the cap in any calendar month, you are not eligible without taking action first. Going over the cap does not disqualify you permanently. It means the excess income has to be routed through a Qualified Income Trust or a Pooled Special Needs Trust. The cap rises every January, so anyone already on Medicaid needs to recheck their numbers each year.

What Is the Florida Medicaid Income Cap?

Which programs it applies to

Different Medicaid programs in Florida carry different income and asset thresholds. This article addresses only the income cap for the long-term care Medicaid programs, meaning ICP, which helps pay nursing home costs, and the Medicaid Waiver, also called Home and Community Based Services, which helps pay for home health care or assisted living facility costs. Those two programs share the same income and asset thresholds.

As of January 2026, the LTC Medicaid income cap in Florida is $2,982 per month.

[VIDEO EMBED, Qualified Income Trusts in Florida

Why the number changes every January

The cap is not an arbitrary figure the state picks. It is set at 300 percent of the Federal Benefit Rate, which is the base monthly Supplemental Security Income payment. Because the Federal Benefit Rate rises with the annual Social Security cost-of-living adjustment, the Medicaid income cap moves with it every January 1. For 2026 the Federal Benefit Rate is $994 a month, which puts the cap at $2,982. This is why a figure published in any given year goes out of date on schedule, and why you should confirm the current number before relying on it.

What counts as income

All sources of income are added together, including Social Security, IRA, 401k and 403b distributions, annuity payments, pensions, and rental income. Medicaid looks at gross income, meaning the amount before deductions, not what actually lands in your bank account. If all gross sources combined exceed the income cap in any calendar month, then without additional action the individual is not eligible for Medicaid to help pay for care at home or in a long-term care facility. The state publishes the current thresholds in Appendix A-9 of the Florida DCF ESS Program Policy Manual, which is the authoritative source if you want to verify the figure yourself.

What Happens if Income Exceeds the Cap?

If a Medicaid applicant or an existing recipient has income that exceeds the cap in any calendar month, the excess amount needs to be transferred into one of two places.

●    Qualified Income Trust, or QIT, also known as a Miller Trust

●    Pooled Special Needs Trust, or PSNT

How a Qualified Income Trust works

Once excess gross income has been properly calculated and transferred into a QIT, funds can come back out of the trust, the same day if you want, to pay for any health or medical related expense for the individual seeking or already receiving Medicaid long-term care benefits.

One important limitation is that only excess income should ever go into a Qualified Income Trust, never assets. A Pooled Special Needs Trust is more flexible, since it can receive income, assets, or both.

How a Pooled Special Needs Trust differs

If you use a Pooled Trust instead of a Miller Trust, the trust funds can be spent on anything the Medicaid recipient needs or wants, whether medical or non-medical. That flexibility is the main practical difference between the two options.

Timing matters

A Qualified Income Trust must be established before you apply. There is no retroactive fix. If your income is over the cap and no trust is in place, the application fails for that month, which is why families facing an immediate care need should act quickly rather than waiting to see whether the numbers work out.

How Might a Medicaid Recipient's Income Increase?

Your income changes every year. At the very least, your Social Security check has increased with the annual cost-of-living adjustment, which is the same adjustment that moves the income cap.

Beyond Social Security retirement income, some people have increased required minimum distributions that must flow out of an IRA or other qualified retirement account. Other recipients inherit a new form of income, for example a surviving spouse who begins receiving a deceased spouse's pension, or someone who inherits an IRA from a parent.

Still others, usually those in a long-term care facility, may want to rent out their home now that they are no longer living in it, taking advantage of the extra rental income. Florida Medicaid allows this when it is planned for properly.

For Those Who Already Have a Miller Trust in Florida

Recheck your numbers every year

Take another look at all of your income, from all sources, to determine the proper amount to transfer into your Miller Trust or Pooled Trust each and every calendar month. Because both your income and the cap change each January, last year's transfer amount is almost certainly wrong this year.

Overfunding compared to underfunding

You can always overfund a Qualified Income Trust, meaning you can transfer more income than is legally required each month. Transferring even a penny too little, on the other hand, can jeopardize Medicaid Waiver or ICP benefits. The risks are not symmetrical, which is why erring slightly high is the safer mistake.

For those in a skilled nursing facility, all income less the personal needs allowance, currently $160 a month, is going to make its way to the nursing home anyway. In that setting, overfunding a QIT is generally not a concern. For those at home or in an assisted living facility, however, you generally want to avoid significantly overfunding the income trust.

For Those on Medicaid Who Do Not Have a Qualified Income Trust

If a Florida Medicaid recipient's income has increased so that gross income from all sources combined now exceeds $2,982 a month, it would be wise to establish a QIT or PSNT immediately. If you are unsure whether a change in your income means you now need a Miller Trust, that is a question worth asking before the next application or recertification. For a fuller picture of the income and asset rules across Florida's Medicaid programs, our guide to how much you can make and still qualify for Medicaid in Florida covers the thresholds in detail.

Key Takeaways

• As of January 2026, the Florida long-term care Medicaid income cap is $2,982 per month, up from $2,901 in 2025.
• The same cap applies to both ICP, for nursing home care, and the Medicaid Waiver, for home care and assisted living.
• The cap equals 300 percent of the Federal Benefit Rate, so it rises every January with the Social Security cost-of-living adjustment.
• Medicaid counts gross income from all sources combined, not the net amount deposited in your account.
• Income over the cap does not disqualify you. Excess income routed into a Qualified Income Trust or Pooled Special Needs Trust preserves eligibility.
• Overfunding a QIT is recoverable. Underfunding it by even a penny can cost you benefits.

Frequently Asked Questions

Q. What is the Florida Medicaid income cap in 2026?

A. As of January 2026, the income cap for Florida long-term care Medicaid, covering both ICP and the Medicaid Waiver, is $2,982 per month in gross income from all sources. That is an increase from $2,901 in 2025.

Q. Why does the Florida Medicaid income cap change every year?

A. The cap is set at 300 percent of the Federal Benefit Rate, the base monthly Supplemental Security Income amount. The Federal Benefit Rate is adjusted each year by the Social Security cost-of-living adjustment, so the Medicaid income cap moves with it every January 1.

Q. What happens if my income is over the Florida Medicaid income cap?

A. You are not permanently disqualified. The excess income must be transferred each month into a Qualified Income Trust, also called a Miller Trust, or into a Pooled Special Needs Trust. Properly used, either one preserves your eligibility.

Q. Can I set up a Miller Trust after I apply for Medicaid?

A. No. The trust must be established before you apply, and it must be funded in each month you need it. There is no retroactive Qualified Income Trust, which is why over-income applicants should address this before filing.

Q. What is the difference between a Miller Trust and a Pooled Special Needs Trust?

A. Only excess income can go into a Qualified Income Trust, and the funds coming out are used for health or medical related expenses. A Pooled Special Needs Trust can receive income, assets, or both, and the funds can be spent on anything the recipient needs or wants, medical or not.

Q. How much income does a nursing home resident keep?

A. A Florida nursing home resident keeps a personal needs allowance of $160 per month. The rest of their income, after allowable deductions such as Medicare premiums and any spousal allowance, goes toward the cost of care as patient responsibility.

Talk to a Florida Medicaid Planning Attorney

The income cap moves every January, and so does your income, which means a plan that worked last year can quietly fall out of compliance this year. If your income has gone up, if you have inherited a pension or an IRA, or if you are thinking about renting out a home you no longer live in, those changes are worth reviewing before they affect your eligibility. A good first step is to gather award letters and statements for every source of income you receive, along with your current trust documents if you already have a Miller Trust in place. Bring that to a consultation and we will calculate the correct monthly transfer amount and confirm whether a Qualified Income Trust or a Pooled Special Needs Trust fits your situation. Our Florida Medicaid planning attorneys help Floridians qualify for long-term care benefits without selling the house, without waiting five years, and without going broke first. When you are ready, schedule a consultation with our Florida elder law team. We serve clients throughout Florida, in person or remotely.