In Texas, the income cap isn't just a number to watch — it's the backbone of any planning strategy. The special income limit for 2026 is $2,982 a month for a single applicant, and for anyone whose countable income exceeds that, HHSC treats a Qualified Income Trust as the mechanism that makes eligibility possible when it's set up and used correctly (HHSC Appendix XXXVI).
That trust has to meet specific requirements: it must be irrevocable, hold only income rather than resources, name the State of Texas as residuary beneficiary up to the amount of Medicaid benefits paid, and receive income in the same month it's received by the applicant. HHSC also requires distributions from the trust by the last day of the following month, and treats a late distribution as a transfer of assets — which can trigger its own penalty (HHSC QIT policy).