Home Equity Limits by State (2026 Chart)

Long-Term Care Medicaid usually lets people keep their home. But if no spouse or protected child lives there, federal law limits how much home equity an applicant can have. In 2026 each state’s limit is between $752,000 and $1,130,000. From January 1, 2028, no state may use a limit above $1,000,000. This page lists each state’s 2026 limit and explains how equity is figured.

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

How the home equity limit works

Federal law (Section 1917(f) of the Social Security Act) says a person cannot qualify for Medicaid payment of long-term care if their equity interest in their home is above the state’s limit, unless one of these people lives in the home:

the applicant’s spouse;
the applicant’s child under 21;
the applicant’s blind or disabled child of any age.

The limits rise each year with inflation. For 2026, the federal minimum is $752,000 and the maximum a state may choose is $1,130,000 (CMS, 2026 SSI and Spousal Impoverishment Standards).

What “equity” means

Home equity is:

If the applicant owns only part of the home, only their share counts. For example:

A home worth $1,000,000 with a $200,000 mortgage has $800,000 of equity.
If the applicant owns half, their equity interest is $400,000.

States may use the tax-assessed value, a broker’s opinion or an appraisal to set fair market value.

2026 home equity limits by state

State	2026 home equity limit
Alabama	$1,130,000
Alaska	$752,000
Arizona	$752,000
Arkansas	Not listed
California	$1,130,000
Colorado	$1,130,000
Connecticut	$1,130,000
Delaware	$752,000
District of Columbia	Not listed
Florida	$752,000
Georgia	$752,000
Hawaii	Not listed
Idaho	$752,000
Illinois	$752,000
Indiana	$752,000
Iowa	$752,000
Kansas	$752,000
Kentucky	$752,000
Louisiana	$752,000
Maine	$1,130,000
Maryland	$752,000
Massachusetts	$1,130,000
Michigan	$752,000
Minnesota	$752,000
Mississippi	$752,000
Missouri	$752,000
Montana	$752,000
Nebraska	$752,000
Nevada	$752,000 (federal minimum, which Nevada uses)
New Hampshire	$752,000
New Jersey	$1,130,000
New Mexico	$752,000
New York	$1,130,000
North Carolina	$752,000
North Dakota	$752,000
Ohio	$752,000
Oklahoma	$752,000
Oregon	$752,000
Pennsylvania	$752,000
Rhode Island	$752,000
South Carolina	$752,000
South Dakota	$752,000
Tennessee	$752,000
Texas	$752,000
Utah	$752,000
Vermont	$752,000
Virginia	$752,000
Washington	$1,130,000
West Virginia	$752,000
Wisconsin	$752,000
Wyoming	$752,000

Figures are taken from each state’s 2026 guide on this site. “Not listed” means the state’s guide does not show a 2026 dollar figure; any limit must still be between the federal minimum and maximum.

The 2028 federal cap

A 2025 federal law (Public Law 119-21) sets a new rule starting January 1, 2028: states may no longer use a home equity limit above $1,000,000, with some exceptions for farm property. States that use the $1,130,000 maximum in 2026 will have to lower their limit by then. States at $752,000 are not expected to be affected.

If equity is over the limit

A person whose equity is over the limit cannot get Medicaid payment for long-term care until it is brought under. Options families sometimes consider:

A home equity loan or line of credit, which lowers equity. The loan money becomes a countable asset unless spent.
A reverse mortgage, which also lowers equity. Payments received may count as income or assets depending on the state.
Selling the home, which turns the equity into cash that must be spent down.
A protected relative moving in, in limited cases where a spouse, child under 21 or disabled child will live there.
Transferring the home under an exemption, such as to a caregiver child.

The limit does not apply to people who qualify through some other routes, and it may be waived in cases of undue hardship.

Because each option has costs and consequences, families often work through them with a Certified Medicaid Planner (CMP).

Home equity and couples

When the spouse at home lives in the home, the equity limit does not apply. The home is exempt regardless of value. If both spouses move to nursing homes, the limit applies to the applicant’s equity interest.

Examples using the chart

Under the limit. Carl lives in Georgia, where the 2026 limit is $752,000. His home is worth $420,000 with no mortgage. His equity is well under the limit.

Over the limit. Diane lives in a state with a $752,000 limit. Her home is worth $950,000 with a $50,000 mortgage, so her equity is $900,000. Unless a spouse or protected child lives there, she is over the limit and cannot get Medicaid payment for long-term care until her equity is reduced.

Higher-limit state. In a state using the $1,130,000 maximum, Diane’s $900,000 of equity would be under the limit in 2026. But from January 1, 2028, the cap of $1,000,000 applies in every state.

Spouse at home. Frank’s wife lives in their $1,400,000 home. Because his spouse lives there, the equity limit does not apply, and the home is exempt.

Common questions

Is the limit based on the whole house or my share? Your share. If you own half, half the equity counts.

Does a mortgage reduce my equity? Yes. Equity is value minus debts against the home.

Does the limit change each year? Yes. The federal minimum and maximum are adjusted for inflation each January, until the $1,000,000 cap takes effect in 2028.

How to estimate your own equity

A rough estimate can be put together in a few steps:

Find the current value. States often start with the tax-assessed value, a recent appraisal, or a market analysis. Some states let the applicant show a lower value with a professional appraisal.
Find the debt. Gather the most recent statements for any mortgage, home equity loan, line of credit or reverse mortgage.
Subtract the debt from the value. The result is the equity.
Figure the applicant’s share. If the applicant owns the home with someone else, the state usually counts only the applicant’s share of the equity, depending on how the property is titled.
Compare with the state’s figure in the chart above.

If the estimate is close to the limit, it is worth getting a professional valuation rather than relying on a website estimate.

Who is not subject to the limit

The equity limit does not apply at all if one of these people lawfully lives in the home:

the applicant’s spouse;
the applicant’s child under 21;
the applicant’s blind or disabled child of any age.

Federal law also requires a process to waive the limit in cases of demonstrated hardship.

Why most families never hit the limit

Most homes have equity far below the 2026 limits. The rule mainly affects people in high-cost areas who own their homes outright. For them, careful planning matters, because an applicant who is over the limit cannot get Medicaid payment for long-term care, no matter how few other assets they have.

Steps to take if you are close to the limit

Review the value the state is using. An outdated or inflated value may be challenged.
Consider whether a spouse or protected child lives in the home, which removes the limit.
Talk with a Certified Medicaid Planner (CMP) about legal ways to reduce equity, such as a home equity loan or a reverse mortgage, and how the loan money would be treated.

Common questions about valuation

Does the state use the sale price I could get today? States usually look for a fair market value, but the method varies: assessed value, an appraisal or a broker’s opinion. If the state’s figure seems too high, ask how it was reached and whether a professional appraisal can be submitted.

Is equity counted for a home owned with a child? Usually only the applicant’s share is counted, based on how the deed is titled.

Do the limits change every year? Yes. They rise with inflation each January, so check the current figure before planning around it.

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