New Jersey Medicaid Income and Asset Limits for Long-Term Care (2026)

You're trying to figure out whether your parent qualifies for Medicaid to cover nursing home or assisted living costs, and every website gives you different numbers. Here are the actual 2026 financial thresholds for New Jersey's Managed Long Term Services and Supports (MLTSS) program — the only Medicaid pathway that covers long-term care in this state.

The 2026 Income and Asset Limits

Gross monthly income cap: $2,982. This includes all income — Social Security, pensions, annuity distributions, rental income, investment dividends. New Jersey is an "income cap" state, meaning there's no medical expense deduction to get under the limit. If your parent's gross monthly income exceeds $2,982 by even one dollar, they're ineligible unless they set up a Qualified Income Trust.

Individual countable asset limit: $2,000. For married couples where both apply, the limit is $3,000. Countable assets include bank accounts, stocks, bonds, CDs, IRAs, 401(k)s, and the cash surrender value of life insurance policies.

What doesn't count: the primary residence (exempt up to $1,130,000 in equity if the applicant intends to return home or a spouse lives there), one vehicle, prepaid burial arrangements, personal belongings, and household goods.

How Spend-Down Works in New Jersey

If your parent has $150,000 in savings and needs to reach the $2,000 threshold, those assets must be reduced through allowable spend-down methods — you can't just give the money away.

Legitimate spend-down strategies include:

• Paying off debts — mortgage, credit cards, medical bills
• Home repairs and modifications — wheelchair ramps, walk-in tubs, grab bars (converts countable cash into exempt home equity)
• Prepaying funeral expenses — irrevocable funeral trusts up to $15,000 are exempt
• Purchasing a Medicaid-compliant annuity — must be irrevocable, non-assignable, actuarially sound, and name New Jersey as the primary remainder beneficiary
• Paying for care directly — private-pay nursing home or home care bills

What you cannot do: transfer assets to family members for less than fair market value. Any such transfer within the 60-month look-back period triggers a penalty.

The Qualified Income Trust (Miller Trust)

If your parent's income exceeds $2,982/month, the fix is a Qualified Income Trust (QIT). This is an irrevocable trust that redirects specific income checks into a dedicated bank account. Key rules:

• The entire check must go into the QIT — you can't split a $1,500 pension check and deposit only the amount over the cap
• Income must be deposited in the same calendar month it's received
• The State of New Jersey must be named as the primary remainder beneficiary
• Funds in the QIT can only be disbursed for approved purposes: $50 personal needs allowance, spousal maintenance, health insurance premiums, and the patient cost-share to the facility

Missing a monthly deposit means losing eligibility for that month. This is an ongoing administrative obligation, not a one-time setup.

Spousal Protections

When only one spouse needs long-term care, the at-home spouse doesn't have to become impoverished:

• Community Spouse Resource Allowance (CSRA): the at-home spouse keeps 50% of the couple's combined countable assets, between a minimum of $32,532 and a maximum of $162,660
• Minimum Monthly Maintenance Needs Allowance (MMMNA): the at-home spouse is guaranteed a monthly income floor of $2,705.00 (effective July 1, 2026), up to a maximum of $4,066.50

If the community spouse's own income falls below the MMMNA, a portion of the institutionalized spouse's income is redirected to make up the difference.

Getting It Right

These thresholds determine whether your parent gets coverage or pays privately at $12,000+/month. One mistake — a poorly timed asset transfer, a missed QIT deposit, an incomplete application — can cost months of eligibility. The New Jersey Care Decision Guide includes a financial thresholds worksheet and QIT setup checklist designed specifically for NJ families.

See more New Jersey guides →