This page provides a plain-English summary of key elder care and estate planning information specific to Pennsylvania residents. It covers Pennsylvania Medicaid limits, inheritance tax rules, advance directive information, and links to important Pennsylvania agencies and resources.
Information on this page is updated periodically but laws and limits change frequently. Always verify current figures with the relevant agency or a licensed attorney.
Pennsylvania Medicaid — 2026 Eligibility Limits for Long Term Care
Medicaid in Pennsylvania is called Medical Assistance — MA. It is administered by the Pennsylvania Department of Human Services and is the primary payer for nursing home care for eligible low income Pennsylvania residents.
Income limit — single applicant The income limit for a single nursing home Medicaid applicant is $2,982 per month in 2026. Pennsylvania uses a spend-down process meaning applicants whose income exceeds the limit may still qualify by applying excess income toward medical expenses.
Asset limit — single applicant Pennsylvania has a unique two-tier asset limit based on income. If a single applicant’s gross monthly income is at or below $2,982 the asset limit is $8,000. If gross monthly income exceeds $2,982 the asset limit drops to $2,400. This is more generous than the $2,000 limit in most other states for lower-income applicants. Exempt assets include the primary residence with equity up to $752,000 if the applicant intends to return home, one vehicle, personal belongings, and irrevocable funeral and burial contracts.
Home and community based care — Community HealthChoices Pennsylvania’s Community HealthChoices waiver — formerly called the Aging Waiver — provides home and community based services for people who need nursing home level care but want to remain at home. The asset limit for Community HealthChoices is $8,000 for a single applicant. The income limit is $2,982 per month. Applicants over the income limit may be able to spend down excess income to qualify in some circumstances — an elder law attorney can advise on this option.
Married couples — one spouse applying When only one spouse applies for Medicaid the applicant spouse may retain up to $8,000 in countable assets if income is at or below $2,982 per month or $2,400 if income exceeds $2,982. The community spouse — the spouse who remains at home — may retain 50 percent of the couple’s combined assets up to a maximum of $162,660. If 50 percent of the couple’s assets is less than $32,532 the community spouse may retain up to $32,532.
Important — community spouse retirement accounts Pennsylvania treats the community spouse’s qualified retirement accounts — IRAs 401(k)s and similar — as non-countable assets. This is a significant advantage compared to many other states and can allow the community spouse to protect substantial retirement savings.
Monthly Maintenance Needs Allowance The community spouse is entitled to a minimum monthly income allowance of up to $4,066.50 per month in 2026. If the community spouse’s income falls below this amount the nursing home spouse may transfer income to bring the community spouse up to the allowance.
Personal needs allowance Pennsylvania nursing home Medicaid recipients are allowed to keep $45 per month as a personal needs allowance. The remainder of income is applied toward the cost of care.
Look-back period Pennsylvania has a 60-month — five year — look-back period for nursing home Medicaid and Community HealthChoices. Asset transfers made within 60 months of applying that were for less than fair market value may result in a penalty period of ineligibility.
Estate recovery Pennsylvania requires Medicaid estate recovery. After a Medicaid recipient dies the state seeks reimbursement from the estate for long term care costs paid. The home is often the primary asset subject to recovery. Proper planning with an elder law attorney can help protect assets from estate recovery.
How to apply for Pennsylvania Medicaid Applications can be submitted online through the COMPASS portal at compass.state.pa.us, by phone at 1-800-692-7462, or in person at your local County Assistance Office — CAO.
Pennsylvania Medicaid administering agency Pennsylvania Department of Human Services — dhs.pa.gov
Pennsylvania Inheritance Tax — 2026
Pennsylvania is one of only six states in the country that imposes a state inheritance tax. This is one of the most important estate planning considerations for Pennsylvania residents and their families. Pennsylvania does not have a separate state estate tax — only the inheritance tax.
What is an inheritance tax An inheritance tax is paid by the people who receive assets from an estate — the beneficiaries — rather than by the estate itself. The tax rate depends on the relationship between the beneficiary and the deceased person not on the size of the estate. Pennsylvania’s inheritance tax applies to estates of all sizes.
Pennsylvania inheritance tax rates The rates are based on the beneficiary’s relationship to the deceased:
- Surviving spouse — 0 percent — completely exempt
- Parent inheriting from a child aged 21 or younger — 0 percent — completely exempt
- Children aged 21 or younger inheriting from a parent — 0 percent — completely exempt
- Direct descendants — adult children grandchildren and their spouses — 4.5 percent
- Siblings — 12 percent
- All other heirs including nieces nephews cousins friends and unmarried partners — 15 percent
- Charitable organizations exempt institutions and government entities — 0 percent
What assets are subject to inheritance tax Pennsylvania inheritance tax applies to most assets including real estate, bank and investment accounts, retirement accounts including IRAs and 401(k)s if the decedent was over age 59½, business interests, and personal property. Life insurance proceeds payable to a named beneficiary are generally exempt. Property owned jointly between spouses is exempt.
Filing deadline and discount The Pennsylvania inheritance tax return — Form REV-1500 for residents — is filed with the Register of Wills in the county where the decedent lived. The return is due nine months after the date of death. Pennsylvania offers a 5 percent discount on the tax owed if payment is made within three months of the date of death.
No Pennsylvania estate tax Pennsylvania does not impose a state estate tax. However Pennsylvania residents may be subject to federal estate tax. The federal estate tax exemption is $15,000,000 per person in 2026. The top federal estate tax rate is 40 percent on amounts above the exemption.
No Pennsylvania gift tax Pennsylvania does not impose a state gift tax. However gifts made within one year of death may be included in the Pennsylvania taxable estate. Federal gift tax rules apply — the annual gift tax exclusion is $19,000 per recipient in 2026.
Planning strategies to reduce Pennsylvania inheritance tax Several strategies can help reduce the Pennsylvania inheritance tax burden including leaving assets to a surviving spouse first, making lifetime gifts more than one year before death, using irrevocable trusts established more than one year before death, using life insurance with named beneficiaries, and making charitable bequests. An estate planning attorney can advise on strategies appropriate for your situation.
Pennsylvania Advance Directives
Pennsylvania law recognizes the following advance directive documents:
Pennsylvania Health Care Power of Attorney Names a healthcare agent to make medical decisions on your behalf when you are unable to do so. Must be signed and witnessed by two adults neither of whom may be the healthcare agent.
Pennsylvania Advance Health Care Directive — Living Will Documents your wishes regarding life-sustaining treatment. Pennsylvania’s Health Care Agencies for Incapacitated Persons law governs advance directives including both healthcare powers of attorney and living wills.
Pennsylvania Out-of-Hospital DNR Order A physician order directing emergency personnel not to perform CPR outside of a hospital setting.
Pennsylvania POLST — Physician Orders for Life-Sustaining Treatment Pennsylvania uses a POLST form for seriously ill patients that documents specific medical orders. Must be completed with a physician, nurse practitioner, or physician assistant.
Pennsylvania Advance Directive Registry Pennsylvania does not maintain a statewide advance directive registry. Copies of your advance directive should be given to your healthcare agent, physician, and any hospital or care facility where you receive care.
Free Pennsylvania advance directive forms Free Pennsylvania-specific advance directive forms are available at caringinfo.org and from the Pennsylvania Medical Society at pamedsoc.org.
Pennsylvania Key Agencies and Resources
Pennsylvania Department of Human Services Administers Pennsylvania Medical Assistance — Medicaid — and processes eligibility applications through County Assistance Offices. Website: dhs.pa.gov COMPASS Online Portal: compass.state.pa.us Phone: 1-800-692-7462
Pennsylvania Department of Aging Coordinates programs and services for older Pennsylvanians including the OPTIONS program for home and community based services and caregiver support. Website: aging.pa.gov Phone: 1-717-783-1550 APPRISE Helpline — free Medicare counseling: 1-800-783-7067
Pennsylvania Area Agencies on Aging Pennsylvania is served by 52 Area Agencies on Aging that coordinate local services for older adults and caregivers. Eldercare Locator: 1-800-677-1116 or eldercare.acl.gov
Pennsylvania Long Term Care Ombudsman Program Advocates for the rights of residents of nursing homes assisted living facilities and other long term care settings. Website: aging.pa.gov/aging-services/long-term-care-ombudsman Phone: 1-717-783-8975
Pennsylvania Department of Revenue — Inheritance Tax Administers the Pennsylvania inheritance tax. Website: revenue.pa.gov Phone: 1-717-787-8327
Pennsylvania Bar Association Lawyer Referral Service Connects Pennsylvanians with attorneys including those who specialize in elder law and estate planning. Website: pabar.org Phone: 1-800-932-0311
Pennsylvania Legal Aid Network Provides free civil legal services to low income Pennsylvanians including seniors on issues related to Medicaid benefits housing and elder law. Website: palegalaid.net Phone: 1-800-322-7572
Pennsylvania Veterans Resources
Pennsylvania Department of Military and Veterans Affairs — DMVA Provides services and benefits to Pennsylvania veterans and their families including free VA claims assistance and veterans homes. Website: dmva.pa.gov Phone: 1-800-547-2838
Pennsylvania State Veterans Homes Pennsylvania operates veterans homes providing long term care to eligible veterans and their spouses. Facilities are located in Hollidaysburg, Philadelphia, Pittsburgh, Scranton, Spring City, and Uniontown. Website: dmva.pa.gov/veterans/Pages/Veterans-Homes.aspx
Pennsylvania Senior Property Tax and Rent Rebate Program
Pennsylvania offers one of the most generous senior property tax relief programs in the country.
Property Tax and Rent Rebate Program Pennsylvania homeowners aged 65 and older and renters aged 65 and older who meet income requirements may qualify for a rebate on property taxes or rent paid. The maximum standard rebate is $1,000. Enhanced rebates of up to $1,500 may be available for qualifying applicants in certain areas. Income limits and rebate amounts are adjusted periodically. Applications are filed with the Pennsylvania Department of Revenue using Form PA-1000. Website: revenue.pa.gov Phone: 1-888-222-9190
Senior Freeze — Homestead Exemption Some Pennsylvania municipalities offer additional property tax relief for seniors. Contact your local tax assessor for information about programs available in your area.
Finding Elder Law and Estate Planning Attorneys in Pennsylvania
The following resources can help you find a qualified elder law or estate planning attorney in Pennsylvania:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory by location
- Pennsylvania Bar Association Lawyer Referral Service — pabar.org — 1-800-932-0311
- Pennsylvania Chapter of NAELA — Pennsylvania has an active NAELA chapter with members throughout the state
- Pennsylvania Legal Aid Network — palegalaid.net — free legal assistance for income-qualifying seniors
The information on this page is for general informational purposes only and does not constitute legal or financial advice. Pennsylvania Medicaid rules, inheritance tax rates, and other figures are subject to change. Always verify current information with the relevant agency or a licensed attorney. Laws vary and individual circumstances differ significantly.
Last updated: March 2026