Is one car exempt?

Is one car exempt?

Short answer: Yes. One vehicle is generally exempt for Long-Term Care Medicaid, regardless of its value, if it is used for transportation of the applicant or a household member.

Figures change periodically. Double-check current amounts before relying on them.

Under the SSI-based rules most states use, one automobile is excluded from countable assets, regardless of value, if it is used for transportation of the applicant or a member of the household. The vehicle does not have to be driven by the applicant; a car used by a family member to take a nursing home resident to appointments, or used by the spouse at home, generally qualifies.

Additional vehicles are usually countable at their equity value (what they could be sold for, minus any loan). Some states have their own rules, such as a value cap.

Things to know:

  • Buying or replacing a car at fair value can be an allowed spend-down, since one vehicle is exempt.
  • Giving a car away is a transfer that can cause a penalty, unless it is to a spouse or another exempt person.
  • Estate recovery. The car may be part of the estate after death in some states.
  • Keep the title and registration for the application.

If the applicant has a motorcycle, RV or boat, ask how the state treats it; these are often countable unless used as the exempt vehicle.

Getting help

Every situation is different, and small facts can change the answer. If this question affects a real decision, especially with a spouse at home, a home, gifts or a trust, a Certified Medicaid Planner can apply your state’s rules to your situation. As a rough guide, published fees for help with an application range from about $500 to $6,000, and hourly help from about $150 to $600.

Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.

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