New Mexico Medicaid income limits come in two sets, and your eligibility depends on which of the state's two Medicaid income tests you are measured against. For long-term care, the state runs a hard income ceiling, not a spend-down: a single applicant seeking nursing-facility or waiver coverage cannot have countable monthly income above $2,982 in 2026, and going over that limit by even a dollar means setting up a Qualified Income Trust before the program will pay. For everyone else (children, parents and caretaker relatives, and adults under 65 who are not on Medicare), the test is Modified Adjusted Gross Income (MAGI), set as a percentage of the poverty level and carrying no asset test at all.,

In This Guide

New Mexico Medicaid eligibility: which income test applies to you

The two tests produce different numbers for the same household, and which applies is decided by your situation, not your income.

The long-term-care test: the $2,982/month cap belongs to the SSI-related aged, blind, and disabled (ABD) track: for people 65 or older, blind, or disabled and needing nursing-facility or waiver care. It carries a $2,000 asset test.

The MAGI test covers everyone else: children, pregnant women, parents and caretaker relatives, and adults ages 19 through 64 who are not on Medicare. Its limits are set as a percentage of the Federal Poverty Level, and federal law bars New Mexico from applying any asset test to these groups.,

The two numbers may not rank the way you expect. The long-term-care cap is $2,982/month, while the MAGI ceiling for an adult under 65 works out to roughly $1,835/month for a household of one.,, A New Mexican can be under the long-term-care cap and over the adult MAGI limit at the same income. New Mexico's figures by group are in New Mexico Medicaid income limits under MAGI.

New Mexico Medicaid long-term-care income limits: why the cap is the whole story

New Mexico is one of the states that runs Medicaid long-term care on a strict income cap. For nursing-facility coverage and for the home-and-community-based services the New Mexico Health Care Authority (HCA) delivers, a single applicant's countable monthly income cannot exceed $2,982 in 2026., That number is set at 300% of the SSI Federal Benefit Rate, which is $994/month for 2026; 300% of $994 is $2,982. Our guide to Medicaid income limits by state compares income-cap and medically needy states.

Spend-down states let income over the limit be used up on medical bills each month. New Mexico is an income-cap state instead: the cap is a true cliff, and an applicant above $2,982 qualifies only through an income trust. That trust route exists only where nursing-facility coverage has no medically needy spend-down.

Timing matters too. The $2,982 maximum applies once the applicant has been institutionalized 30 consecutive days; leave sooner (other than by transfer or death) and the lower SSI rate applies.

When you are over the New Mexico Medicaid income limit: the Qualified Income Trust

If your countable income exceeds $2,982/month, New Mexico requires you to set up a Qualified Income Trust, which the state calls an Income Diversion Trust and which is also known nationally as a Miller Trust, to qualify for long-term-care Medicaid. The mechanics:

Confirm with the Health Care Authority how often deposits must be made. The drafting and the deposit mechanics leave little room for error, so an elder-law attorney's help is worth considering here.

The trust solves the income test only; the asset rules below still apply.

The asset limit for a single applicant

New Mexico applies the SSI resource baseline. A single nursing-home or waiver applicant is limited to $2,000 in countable resources. Married applicants get separate spousal protections, covered below.

"Countable" is the word that carries the weight. New Mexico excludes a list of assets from the count:

So the $2,000 applies to things like bank accounts, a second car, and investments, not the roof over your head.

Long-term care: what a nursing-home resident keeps

When New Mexico Medicaid pays for nursing-facility care, the resident pays most of their monthly income toward the cost of care as a patient liability. What they may hold back starts with the Personal Needs Allowance (PNA), money reserved for the resident's own small expenses such as clothing, a haircut, or a phone bill. New Mexico sets its Institutional Care PNA at $100/month; the resident also keeps amounts for non-covered medical expenses and Medicare and other health-insurance premiums, with a potential allowance for a spouse and minor children at home. That is above the federal floor of $30/month for a single institutionalized individual.

A resident whose income tops $2,982 reaches eligibility through the income trust, then contributes the trust-disbursed share toward care. For the national picture, see our explainer on the Medicaid personal needs allowance.

The five-year look-back

New Mexico reviews asset transfers made in the 60 months before a long-term-care application., Giving away money or property for less than fair market value during that window, such as gifting a grandchild a down payment or signing a house over to a child for a dollar, can trigger a penalty period during which Medicaid will not pay for long-term-care services even though you are otherwise eligible. New Mexico also examines transfers made after approval, which can bring a penalty too.

There are legitimate exceptions, including transfers between spouses, transfers to a blind or disabled child, and certain caregiver-child home transfers, along with legitimate planning approaches. Anything done inside the five-year window deserves an elder-law attorney's review first. For the broader toolkit, see our guide to Medicaid planning strategies.

Protecting the spouse who stays home

When one spouse needs long-term care and the other remains in the community, federal spousal-impoverishment rules keep the at-home spouse from being left destitute. New Mexico applies the federal allowances for 2026:,

Protection 2026 Amount What it does
Community Spouse Resource Allowance (CSRA) Half the couple's countable assets, up to $162,660; minimum $32,532 The countable assets the at-home spouse keeps under the standard calculation, on top of the applicant's own $2,000 limit.
Monthly Maintenance Needs Allowance $2,705.00 minimum (from 7/1/2026) up to $4,066.50 maximum (from 1/1/2026) The at-home spouse's monthly income allowance; income can be shifted from the applicant to reach it.

In New Mexico these are standards, not absolute ceilings: a hearing or court order can protect more assets, and exceptional circumstances causing significant financial duress can justify more income., For the New Mexico specifics, see our guide to New Mexico Medicaid spousal impoverishment rules.

After death: estate recovery

Like every state, New Mexico runs a Medicaid estate-recovery program. After a recipient who was 55 or older and received long-term-care services dies, the Health Care Authority is required to seek repayment from the estate, which in New Mexico means the property that passes through probate. Federal law delays recovery until after a surviving spouse has died, and bars it while there is a surviving child under 21 or one who is blind or permanently and totally disabled. Exemptions apply, and an undue-hardship waiver may be granted case by case. For how estate recovery works and where families have room to plan, see our Medicaid estate recovery explainer.

New Mexico Medicaid income limits under MAGI: adults, parents, and children

Everything above applies to the long-term-care track. If you are not applying for nursing-home or waiver care, your answer sits here.

New Mexico has adopted the ACA Medicaid expansion, so it runs the full set of MAGI categories, each with its own income standard. The Health Care Authority numbers these categories, which is how they appear on the state's eligibility pamphlet and on your notices.

Adults under 65: Category 100, Other Adults

New Mexico covers adults ages 19 through 64 with no Medicare eligibility under Category 100, Other Adults, which covers income below 133% FPL.

Two numbers circulate for this group, and both are correct. The statute writes the threshold as 133% FPL; because MAGI rules apply a mandatory income disregard of 5 percentage points of the poverty level, the effective ceiling is 138% FPL. New Mexico's chart and the federal table both publish the 133% base, but 138% is what your income is measured against.,

In dollars, 138% of the poverty level is roughly $1,835/month for a household of one, from the 2026 guideline of $15,960/year for one person in the 48 contiguous states and DC.,

Parents and caretaker relatives: Category 200

New Mexico covers parents and other caretaker relatives under Category 200, Parent/Caretaker Relative Medicaid, measured against a fixed-dollar income standard rather than a percentage of the poverty level. It is the same standard the state uses for Category 300, Full Medicaid for Pregnant Women.

That standard is low, for a structural reason. Parents and caretaker relatives are a federally mandatory Medicaid group, but their mandatory coverage is pegged to the state's own old AFDC cash-welfare income standard rather than to a percentage of the poverty level; the federal minimum is the state's AFDC standard as of May 1, 1988. New Mexico's eligibility pamphlet (updated July 2026) sets the Category 200 limit at $451/month for a household of one, $608 for two. The federal eligibility table puts that standard at the equivalent of 37% FPL.

In New Mexico, that low standard matters far less than it does elsewhere. Because the state runs the expansion adult group, a parent under 65 who is over the Category 200 standard may still qualify under Category 100 instead. In a state that did not adopt the expansion, it is this state-set standard, not a poverty-level percentage, that decides whether a working parent qualifies.

For a grandparent raising a grandchild, Category 200 is the group to ask about: parents and other caretaker relatives are a single federally mandatory group, the pathway written for a relative caring for a child in the home. Whether a particular grandparent meets New Mexico's definition of a caretaker relative is a determination for the Health Care Authority. Ask them directly rather than assuming either way.

Turning 65 closes the adult group

Category 100 is written for adults ages 19 through 64 with no Medicare eligibility. That age band is not a state choice; it is the federal definition of the new adult group, which covers individuals under 65 who are not pregnant and not entitled to or enrolled in Medicare.

On the 65th birthday, that pathway closes. The same person is generally assessed on the SSI-related ABD track instead, the track federal law expressly excepts from the MAGI no-asset-test rule. Two things change at once:

  • The income yardstick drops. It becomes the SSI Federal Benefit Rate, which is $994/month for an individual in 2026, rather than 138% FPL (roughly $1,835/month).,,
  • An asset test appears. The resource test defaults to the SSI standard of $2,000 for an individual, a test the MAGI groups are barred from applying at all.,

So a 64-year-old New Mexican covered at $1,600/month with modest savings can be over both tests at 65, without a dollar of income changing.,

The cliff also has a second trigger unrelated to age: Category 100 also excludes anyone entitled to or enrolled in Medicare, so a person under 65 who reaches Medicare through disability leaves the group the same way., And the $2,982 cap at the top of this guide is not the door that opens in its place: it applies to people who need nursing-facility-level care. Someone who ages off Category 100 without needing that level of care is measured against the ABD standards instead. If Medicare is the reason the group closed, the New Mexico Medicare Savings Programs are usually the next thing to price.

Children and CHIP, briefly

New Mexico's children's coverage runs in tiers, and the age bands are the state's own: 0 through 5 and 6 through 18.

Group New Mexico category Income limit
Adults 19-64, no Medicare Other Adults (100) 133% FPL base; 138% FPL effective
Parents / caretaker relatives Parent/Caretaker Relative Medicaid (200) Fixed-dollar standard: $451/month for one (CMS lists it as 37% FPL)
Pregnant women Full Medicaid for Pregnant Women (300) Same fixed-dollar standard as Category 200
Pregnant women Pregnancy Related Medicaid (301) Up to 250% FPL
Children 0 through 5 Children's Medicaid (400, 402) Up to 240% FPL
Children 0 through 5 CHIP Medicaid (420) 240%-300% FPL
Children 6 through 18 Children's Medicaid (401, 403) Up to 190% FPL
Children 6 through 18 CHIP Medicaid (421) 190%-240% FPL

Combined, Medicaid and CHIP cover children 0 through 5 to 300% FPL and children 6 through 18 to 240% FPL. New Mexico runs a Medicaid-expansion CHIP rather than a separate, standalone CHIP program, and on the federal comparison table its separate-CHIP column is marked N/A.

No asset test on the MAGI side

None of New Mexico's MAGI categories applies a resource test. That is federal law rather than a state choice: it bars any assets test on the MAGI groups, and expressly excepts the SSI-related ABD and long-term-care pathways from that bar.

The $2,000 countable-asset limit belongs to the long-term-care side only. A 60-year-old New Mexican with $40,000 in savings and $1,500/month in income is measured under Category 100 on income, with those savings disregarded entirely., The same person at 66 is measured on the ABD track, where a resource test applies and those savings do count.,

How to apply in New Mexico

New Mexico Medicaid is administered by the New Mexico Health Care Authority (HCA), and its Income Support Division offices make eligibility determinations. Its managed-care program is Turquoise Care, which began July 1, 2024 and replaced Centennial Care 2.0. Apply online through YesNM or by phone; the details are below.

YesNM Online Portal Apply online for Medicaid at any time. yes.nm.gov
Consolidated Customer Service Center Apply by phone, ask questions, or complete an eligibility interview, 7:00am to 6:30pm Monday through Friday. 1-800-283-4465 hca.nm.gov

Home-and-community-based care has a medical test as well as a financial one: the Community Benefit serves Turquoise Care members who meet a nursing-facility level of care but want to live at home or in the community. Apply even if your income looks too high. Between the income trust and the spousal protections, an applicant who assumes they are disqualified may not be; they may just need the right paperwork in place first.

Frequently Asked Questions

Who is eligible for New Mexico Medicaid in 2026?

It depends on your group, and each group has its own income test. Adults 19 through 64 without Medicare qualify under Category 100 at an effective 138% FPL, and parents and caretaker relatives under Category 200 against a fixed-dollar standard., Children qualify through Medicaid and CHIP up to 300% FPL (ages 0 through 5) or 240% FPL (ages 6 through 18), and these MAGI groups have no asset test., People 65 or older, blind, or disabled who need nursing-facility or waiver care must have income at or below $2,982/month in 2026, or use a Qualified Income Trust, and no more than $2,000 in countable resources.

What is the income limit for Medicaid in New Mexico in 2026?

It depends on which test applies. For nursing-facility and waiver coverage, the 2026 cap is $2,982/month for a single applicant (300% of the SSI Federal Benefit Rate), and income above it requires a Qualified Income Trust rather than a spend-down. For the MAGI groups, the limit is a percentage of the poverty level that varies by group, with no asset test.

What is the regular, non-nursing-home Medicaid income limit in New Mexico?

For an adult age 19 through 64 with no Medicare, New Mexico covers income up to an effective 138% of the poverty level under Category 100, Other Adults, or roughly $1,835/month for a household of one in 2026. The pamphlet publishes the 133% base; the effective ceiling is 138% because MAGI rules apply a mandatory 5-percentage-point disregard. There is no asset test on this pathway.

Can an adult under 65 without children qualify for New Mexico Medicaid?

Yes. New Mexico has adopted the ACA Medicaid expansion, so it covers adults ages 19 through 64 who are not on Medicare under Category 100 whether or not they have children, at an effective 138% FPL and with no asset test. In most of the ten states that did not expand, a childless adult has no comparable pathway, though some cover limited groups through section 1115 demonstrations.

I turn 65 soon and have New Mexico Medicaid. Will I lose it?

Possibly, and this catches people. Category 100 covers only adults under 65 who are not entitled to or enrolled in Medicare, so it closes on the 65th birthday. You are then generally assessed on the SSI-related ABD track, where the yardstick becomes the SSI Federal Benefit Rate of $994/month instead of 138% FPL and a resource test appears, defaulting to $2,000. Reaching Medicare under 65 through disability closes the group too.

Does New Mexico require a Miller Trust?

Yes, if your countable monthly income exceeds the $2,982 cap. New Mexico is an income-cap state, so an over-income applicant must establish a Qualified Income Trust (the state's term is an Income Diversion Trust) and deposit the excess income into it to qualify. Ask the Health Care Authority how often deposits must be made.

What is the New Mexico Medicaid asset limit?

$2,000 in countable resources for a single applicant, on the long-term-care and SSI-related ABD track only. The MAGI groups (children, pregnant women, parents and caretaker relatives, and adults under 65) have no asset test at all: federal law bars states from applying one. The home (subject to a home-equity cap), one vehicle, household goods, and a burial fund of up to $1,500 are excluded from the count.

How much can a spouse keep when the other spouse goes into a nursing home?

Under the standard 2026 calculation, the at-home spouse keeps up to $162,660 in countable assets (minimum $32,532) and a monthly income allowance up to $4,066.50. A hearing or court order can set more.

What does a nursing-home resident on New Mexico Medicaid get to keep?

They keep a Personal Needs Allowance of $100/month, plus deductions for health-insurance premiums, non-covered medical costs, and a potential spouse and minor-children allowance. The rest goes toward the cost of care.

How do I apply for New Mexico Medicaid long-term care?

Apply online through the YesNM portal at yes.nm.gov, or by phone at 1-800-283-4465, the same number to call with questions or to complete an interview. Home-and-community-based care also requires a nursing-facility level of care.

Learn More

MedicaidMedicaid Income Limits by State: Which Number Applies to YouMedicaid income limits for 2026 depend on your pathway: expansion adults, aged and disabled, or nursing-home care. See the figures and your state's limits. MedicaidMedicaid Planning StrategiesSee which assets you keep, how the 5-year look-back works, and the legal moves that qualify you for Medicaid long-term care without losing the house. MedicaidHow Medicaid Estate Recovery WorksMedicaid estate recovery can claim a home after death, but not while a spouse or a child under 21, blind or disabled survives. See your state's rules. MedicaidThe Medicaid Personal Needs Allowance, ExplainedHow the Medicaid Personal Needs Allowance works in 2026: the $30 federal floor, what the states set, and how patient liability is calculated. MedicaidNew Mexico Medicaid Estate RecoveryHow New Mexico Medicaid estate recovery works in 2026: probate-only scope, who is protected, the undue hardship waiver, and how to respond to an HCA claim. MedicaidNew Mexico Medicare Savings ProgramsNew Mexico Medicare Savings Programs 2026: QMB, SLMB, and QI income limits, no asset test, and how to apply for help paying Medicare premiums. MedicaidNew Mexico Medicaid Spousal Impoverishment RulesNew Mexico Medicaid spousal impoverishment in 2026: CSRA standards of $32,532–$162,660, an MMMNA floor of $2,705.00, and the Income Diversion Trust.

Find personalized help working through New Mexico Medicaid eligibility and the income-trust process for your family at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.

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