New Mexico Medicaid income limits work differently from what most families expect. The state runs a hard ceiling, not a spend-down. For nursing-facility and waiver coverage in 2026, a single applicant's gross income cannot exceed $2,982/month, and going over that limit by even a dollar means you must set up a Qualified Income Trust before Medicaid will pay. That trust, often called a Miller Trust, is the workaround New Mexico builds in so a higher income doesn't lock you out.
This guide covers the 2026 income and asset rules for New Mexico Medicaid long-term care, the program the state calls Centennial Care. It walks through the income cap and how the Miller Trust handles income above it, the $2,000 asset limit, what a nursing-home resident keeps, the protections for a spouse who stays home, and how to apply.
New Mexico Medicaid 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 delivered through Centennial Care, a single applicant's gross monthly income cannot exceed $2,982 in 2026. That number isn't arbitrary: it's set at 300% of the SSI Federal Benefit Rate, which is $994/month for 2026, and 300% of $994 is $2,982.
Here's where New Mexico parts ways with spend-down states like Illinois. In a spend-down state, income over the limit just becomes a monthly amount you "use up" on medical bills before coverage starts. New Mexico has no such mechanism for institutional care. The cap is a true cliff: count your gross income, and if it lands above $2,982, the regular door is closed.
But the state doesn't leave over-income applicants stranded. It builds in a legal workaround, which is the next section.
When you're over the cap: the Qualified Income Trust (Miller Trust)
If your gross income exceeds $2,982/month, New Mexico requires you to set up a Qualified Income Trust, more commonly called a Miller Trust, to qualify for long-term-care Medicaid. The mechanics are specific, and getting them right matters:
- You establish the trust and name the state Medicaid agency as the remainder beneficiary.
- Each month, you deposit the income that exceeds the limit into the trust. Income parked in a properly drafted Miller Trust no longer counts against the cap, so on paper you're back under $2,982.
- The trust funds are then disbursed under Medicaid rules, toward your Personal Needs Allowance, a community spouse's allowance if there is one, certain health-insurance premiums, and the patient share of your care.
The trust has to be funded every month it's needed, and the deposits have to happen on time. A Miller Trust that's set up but not consistently funded won't protect eligibility. Because the drafting and the monthly mechanics are unforgiving, this is the part of New Mexico Medicaid where families most often want an elder-law attorney, not a DIY template.
One thing the Miller Trust does not do: it doesn't help with assets. It solves the income test only. The asset rules below still apply on their own.
The asset limit: $2,000 single, $4,000 for a couple
Unlike a handful of states that have raised their asset ceilings, New Mexico holds to the long-standing federal baseline. A single nursing-home or waiver applicant is limited to $2,000 in countable assets. A married couple with both spouses applying is limited to $4,000, which is $2,000 per spouse.
"Countable" is the word that carries the weight. New Mexico, like every state, exempts a long list of assets from the count:
- Your home, subject to an equity cap (the 2026 home-equity limit is $752,000).
- One vehicle.
- Household goods and personal effects.
- Prepaid burial arrangements.
So the $2,000 applies to things like bank accounts, a second car, and investments, not the roof over your head. Where a married couple has only one spouse applying, the spousal-impoverishment rules below are what protect the at-home spouse's share, and those allowances are far larger than $2,000.
Long-term care: what a nursing-home resident keeps
When New Mexico Medicaid pays for nursing-facility care, the resident contributes almost all of their monthly income toward the cost of care. What they hold back is 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 PNA at $97/month, which is on the higher end among states.
The same $2,000 asset limit applies to nursing-home applicants. And because New Mexico caps income rather than running a spend-down, a resident whose income tops $2,982 reaches eligibility through the Miller Trust, then contributes the trust-disbursed share toward care. (For the national picture on the PNA and how it's set, see our explainer on the Medicaid personal needs allowance.)
Here's how the income side comes together in practice.
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 won't pay for long-term-care services even though you're otherwise eligible.
There are legitimate exceptions (transfers between spouses, transfers to a disabled child, certain caregiver-child home transfers) and legitimate planning approaches, but anything done inside the five-year window deserves an elder-law attorney's review first. If long-term care is on the horizon for someone in your family, talk to a professional before moving assets. 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 most in countable assets the at-home spouse may keep, on top of the applicant's own $2,000 limit. |
| Minimum Monthly Maintenance Needs Allowance (MMMNA) | Up to $4,066.50/month (effective 1/1/2026) | The most monthly income the at-home spouse may keep; income can be shifted from the applicant to reach it. |
| Home-equity limit | $752,000 | Equity in the primary residence above this amount is countable for long-term-care eligibility. |
So a married couple with one spouse applying is in a very different position from a single applicant. The community spouse can hold up to $162,660 in assets and keep an income allowance reaching $4,066.50/month while the other spouse receives Medicaid-funded care. New Mexico uses a shelter standard of $793.13/month inside that income calculation.
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 state may seek repayment from the estate, unless the recipient is survived by a spouse or a minor, blind, or disabled child. Federal exceptions and an undue-hardship waiver apply. For how estate recovery works and where families have room to plan, see our Medicaid estate recovery explainer.
How to apply in New Mexico
New Mexico Medicaid is administered by the New Mexico Health Care Authority (HCA, formerly the Human Services Department), with financial eligibility for long-term care handled through its Income Support Division. You have two main ways to apply:
- Online through the YesNM portal at yes.state.nm.us, which handles Medicaid alongside other benefits.
- By phone through the HCA at 1-800-283-4465.
Long-term-care applicants also go through a level-of-care assessment to confirm they need nursing-facility-level services. Apply even if your income looks too high. Between the Miller Trust and the spousal protections, many people who assume they're disqualified are not, they just need the right paperwork in place first.
Frequently Asked Questions
For nursing-facility and home-and-community-based waiver coverage, the 2026 income cap is $2,982/month for a single applicant, equal to 300% of the SSI Federal Benefit Rate. New Mexico is an income-cap state, so income above that figure requires a Qualified Income Trust rather than a spend-down.
Yes, if your gross monthly income exceeds the $2,982 cap. New Mexico does not offer a medically needy spend-down for institutional care, so an over-income applicant must establish a Qualified Income Trust (Miller Trust) and deposit the excess income into it each month to qualify. The trust has to be funded every month it's needed.
$2,000 in countable assets for a single applicant, and $4,000 for a married couple when both spouses apply ($2,000 per spouse). The home (up to $752,000 in equity), one vehicle, household goods, and prepaid burial arrangements are exempt from the count.
For 2026, the at-home (community) spouse can keep up to $162,660 in countable assets (the Community Spouse Resource Allowance, minimum $32,532) and a monthly income allowance reaching $4,066.50 as of January 1, 2026. The home is also generally protected up to $752,000 of equity.
A Personal Needs Allowance of $97/month, which is higher than the allowance in many states. The rest of the resident's monthly income goes toward the cost of care, after deductions for a community spouse and certain health-insurance premiums.
Apply online through the YesNM portal at yes.state.nm.us, or by phone through the New Mexico Health Care Authority at 1-800-283-4465. Long-term-care applicants also complete a level-of-care assessment to confirm they need nursing-facility-level care.
Learn More
- Medicaid Planning Strategies
- How Medicaid Estate Recovery Works
- The Medicaid Personal Needs Allowance, Explained
Find personalized help working through New Mexico Medicaid eligibility and the Miller 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.