What Is the Income Limit for Medicaid in Illinois?

Most adults in Illinois qualify for Medicaid if their household income is at or below 138% of the federal poverty level. For a single person in 2026, that works out to about $1,835 a month, or roughly $22,020 a year.¹ That figure is the Illinois Medicaid income limit for the largest eligibility group, but it isn’t the only one. Children, pregnant women, seniors, people with disabilities, and working people with disabilities each have their own thresholds, and some are considerably higher.

2026 Income Limits by Group

Illinois sets its Medicaid cutoffs as percentages of the federal poverty level, which the U.S. Department of Health and Human Services updates each January. The 2026 poverty level is $15,960 a year for a single person and $33,000 for a family of four.² The dollar cutoff you’ll face depends on your household size and which program fits your situation.

Adults Ages 19 to 64

Under the ACA expansion, adults aged 19 through 64 without Medicare qualify at household incomes up to 138% of the federal poverty level. In 2026, a single adult can earn up to $1,835 a month (about $22,020 a year), and a two-person household can earn up to $2,489 a month.¹ The 138% number reflects a 133% statutory limit plus a built-in 5% income disregard.

Parents and caretaker relatives of dependent children fall under FamilyCare and use the same 138% threshold.

Children on All Kids

Children’s coverage is more generous than adult coverage, and All Kids uses a tiered system. Higher-income families pay more in premiums and copays rather than losing coverage altogether. The 2026 monthly gross income limits for a family of four:³

All Kids Assist, up to $3,246 a month, with no premiums, copays, or cost-sharing.
All Kids Share, $3,247 to $3,467 a month, with small copays for some services.
All Kids Premium Level 1, $3,468 to $4,615 a month, with monthly premiums and copays.
All Kids Premium Level 2, $4,616 to $7,023 a month, with higher premiums and copays.

At the top tier, a family of four earning around $84,000 a year can still get coverage for the kids, though with real out-of-pocket costs. The limits scale with family size.

Pregnant Women

Pregnant women qualify through the Moms & Babies program at household incomes up to 213% of the federal poverty level (including the 5% disregard).⁴ Medicaid counts the unborn child as a household member, so a pregnant woman with no other dependents is treated as a two-person household. Coverage continues through 12 months after the baby is born, not just the pregnancy.⁵

Seniors, Blind Adults, and People with Disabilities

The AABD program (Aid to the Aged, Blind, or Disabled) covers people 65 and older, people who are blind, and people with qualifying disabilities. The income limit is tighter: 100% of the federal poverty level. In 2026, that’s $1,330 a month ($15,960 a year) for a single person, and $1,803 a month for a couple.¹ AABD also has an asset test, covered below.

Working People with Disabilities

The Health Benefits for Workers with Disabilities program has the highest income threshold in Illinois Medicaid. Working individuals with disabilities aged 16 to 64 can qualify at household incomes up to 350% of the federal poverty level. For a single person in 2026, that’s $4,655 a month, or about $55,860 a year.⁶ You have to be actively working, and a spouse’s income counts if they live with you.

How Illinois Counts Your Income

For most Medicaid programs, Illinois uses Modified Adjusted Gross Income, or MAGI, to measure what you earn. MAGI tracks closely with the income you’d report on a federal tax return and includes wages, self-employment earnings, Social Security benefits, and most other income.⁷ For many people, MAGI is identical or very close to the adjusted gross income on their tax return.

A few income sources don’t count. Supplemental Security Income (SSI) is excluded from MAGI entirely. So are scholarships and fellowship grants used for tuition and educational expenses. Child support you receive doesn’t count either.⁷

If you’re self-employed, Illinois looks at your net self-employment income after the business expenses you’d be entitled to deduct on a federal return. Say your freelance work brings in $4,000 a month but you have $1,500 in legitimate business expenses: Medicaid counts the $2,500 difference. People sometimes underestimate their eligibility here, because supplies, equipment, vehicle costs, and the home office deduction all pull the number down.

Household size matters as much as income, because the poverty level thresholds rise with each additional person. A single adult earning $22,000 would be just over the ACA adult limit, but the same income for a two-person household falls well below the $29,868 annual threshold at that size. When counting household members, Illinois generally follows tax filing rules: if you’d claim someone as a dependent on your taxes, they’re usually part of your Medicaid household.

Asset Limits Only Apply to AABD

Most Medicaid programs in Illinois, including ACA Adults, FamilyCare, All Kids, and Moms & Babies, have no asset test at all. Your bank balance, home equity, and investments are irrelevant for those programs.

The main exception is AABD. For 2026, the resource limit is $17,500, whether you apply as an individual, a couple, or a larger household.¹ Not everything you own counts. Motor vehicles are exempt unless they’re used primarily for recreation, and business or farming equipment used to produce income doesn’t count.⁸ Prepaid burial plans up to certain limits are also exempt. Your primary home is generally not counted as a resource while you live in it.

If Your Income Is a Little Too High

Being slightly over the limit doesn’t automatically shut you out.

The Spend-Down Program

Illinois runs a Medicaid spend-down for people whose income or assets exceed the standard thresholds, which matters most for AABD applicants hovering just above 100% of the federal poverty level.⁹ It works like a deductible. The state calculates a monthly amount based on how far your income exceeds the limit, and once you show medical bills or receipts equal to that amount, you get a medical card covering additional care for the rest of the month.

Your local Department of Human Services Family Community Resource Center sets your spend-down amount and sends a notice explaining the calculation. You meet it by giving your caseworker unpaid medical bills or receipts for medical expenses you’ve already paid. Prescription costs, doctor visit copays, and medical supplies all count.

Transitional Coverage When Earnings Rise

If you’re already on FamilyCare and your earnings climb above the limit, you don’t lose coverage overnight. Transitional Medical Assistance provides up to 12 months of continued Medicaid for families who lose eligibility because of increased earnings.¹⁰ The first six months continue with no income or resource test. A second six-month extension may follow, but it includes an income test: earnings during that period can’t exceed 185% of the federal poverty level.

Other Requirements Besides Income

Income and assets aren’t the only criteria. You have to be an Illinois resident, though there’s no minimum length of time you need to have lived in the state; a recent move doesn’t delay your application.⁶

You generally need to be a U.S. citizen or a lawful permanent resident who has held that status for at least five years. Immigrants admitted after August 1996 face a five-year waiting period before qualifying.⁶ Children under 19 and pregnant women are exceptions and can qualify regardless of immigration status.¹¹

1
Illinois Department on Aging. 2026 Illinois Medicaid Income Standards and Resource Limits
2
U.S. Department of Health and Human Services. 2026 Poverty Guidelines – 48 Contiguous States
3
Illinois Department of Healthcare and Family Services. How Much Does It Cost – All Kids
4
Illinois Department of Human Services. WAG 25-03-02 (2) Medical FPLs
5
Illinois Department of Healthcare and Family Services. Introduction to Medicaid
6
Illinois Department of Healthcare and Family Services. HBWD Eligibility
7
Get Covered Illinois. Modified Adjusted Gross Income (MAGI)
8
Legal Information Institute. Illinois Admin Code Title 89 240.815 – Exempt Assets
9
Illinois Department of Healthcare and Family Services. HFS 591SP Medicaid Spenddown
10
Medicaid.gov. Implementation Guide – Transitional Medical Assistance
11
Illinois Department of Healthcare and Family Services. Applying for Medicaid