Texas Medicaid income limits 2026

Last verified: June 2026

Texas Medicaid income limits by coverage group (2026)

Texas HHSC uses the 2026 Federal Poverty Level (FPL) published by HHS for Medicaid and CHIP eligibility determinations effective March 1, 2026. The 2026 base FPL for a single person is $15,060/year ($1,255/month). All figures below are monthly unless noted, per HHSC Bulletin 26-04 (effective March 1, 2026).

*A family of 1 in the children's category could be a child not living with a parent or other relative. Source: HHSC Bulletin 26-04 (effective March 1, 2026); hhs.texas.gov Children's Medicaid income guidelines; HHSC CHIP income guidelines. Parent income limit is approximate; see discussion below.

Children's Medicaid income limits by household size (2026)

The table below reflects HHSC's published 2026 monthly income guidelines for Children's Medicaid (STAR program). These figures are effective March 1, 2026 and reflect the 133% FPL threshold, per the official HHSC Children's Medicaid page. If your child's income is too high for Medicaid, HHSC will automatically check CHIP eligibility.

Source: HHSC Children's Medicaid (STAR) income guidelines, effective March 2026. Income is gross monthly household income before taxes.

Why the parent income limit is so low — and what it means

Texas covers parents and caretaker relatives of dependent children at approximately 15% FPL — the lowest threshold for parents in the entire country, per Every Texan. That translates to roughly $319/month gross income for a family of three. A parent working even part-time at minimum wage will typically earn too much.

This is not a budgeting choice unique to HHSC — it reflects Texas's decision not to expand Medicaid. In expansion states, parents qualify at 138% FPL. Texas has remained at its pre-ACA baseline. The result: most Texas children on Medicaid have parents who do not qualify for Medicaid themselves, leaving families without coverage for the adults.

Parents who earn between ~15% FPL and 100% FPL fall into the coverage gap. ACA marketplace subsidies do not apply below 100% FPL. These families have no subsidized coverage option under current law.

Income and asset rules for seniors and people with disabilities (MEPD)

Medicaid for the Elderly and People with Disabilities (MEPD) uses income and asset tests. For most MEPD categories, the income limit is approximately 100% FPL ($1,330/month for an individual, as of March 2026). However, certain disregards and deductions apply — for example, the standard $20 monthly disregard and earned income deductions for working disabled individuals.

For long-term care Medicaid (nursing facility coverage), income rules differ from community-based MEPD. Texas uses an income cap: applicants with monthly income above the special income limit for nursing facility care (approximately $2,829/month for an individual in 2026, or 300% of the SSI federal benefit rate) may still qualify by establishing a Qualified Income Trust (also called a Miller Trust). This must be done with an attorney's help before the application is submitted.

Asset limits for MEPD: $2,000 for a single individual, $3,000 for a married couple (where both apply). The primary home, one vehicle, and certain personal and burial property are excluded. A spouse remaining at home may protect additional assets under the Spousal Impoverishment protections of the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 — currently up to approximately $157,920 (2026 CSRA limit, per CMS).

Medicaid Buy-In programs for working people with disabilities

Texas offers two buy-in programs for people with disabilities who work or whose income exceeds standard MEPD limits:

How income is counted: MAGI rules

For children, pregnant women, and parents, Texas uses Modified Adjusted Gross Income (MAGI) methodology — the same approach used for ACA marketplace coverage. MAGI is based on federal tax filing rules.

MEPD (Medicaid for the Elderly and People with Disabilities) uses a different income counting methodology — not MAGI. The $20 general disregard and earned income deductions apply. See the income table in the content above for MEPD-specific limits.

The Texas coverage gap: who it affects

The coverage gap describes adults who earn too much for Texas Medicaid but too little for ACA marketplace subsidies. ACA premium tax credits begin at 100% FPL ($1,255/month for a single adult in 2026). Texas Medicaid covers parents only at ~15% FPL (~$319/month for a family of three). Adults without children qualify at 0%.

If you fall in the coverage gap, check healthcare.gov to confirm you don't qualify for a special enrollment period or other coverage option.