This page provides a plain-English summary of key elder care and estate planning information specific to Arizona residents. It covers Arizona Medicaid limits, estate tax rules, advance directive information, and links to important Arizona 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.
Arizona Medicaid — 2026 Eligibility Limits for Long Term Care
Arizona’s Medicaid program is called the Arizona Health Care Cost Containment System — AHCCCS pronounced access. The long term care component is called the Arizona Long Term Care System — ALTCS. Arizona has a unique managed care model meaning all AHCCCS members including ALTCS recipients receive their care through managed care organizations rather than fee-for-service providers.
Important — ALTCS has a medical pre-screening requirement Arizona is unique among states in requiring a medical Pre-Admission Screening — PAS — before financial eligibility is even reviewed. Applicants must first demonstrate that they need a nursing facility level of care before the financial application proceeds. This medical assessment evaluates the applicant’s ability to perform activities of daily living and their level of cognitive impairment. Applicants who do not meet the medical threshold are denied regardless of their financial situation.
No waitlist for ALTCS Unlike many state HCBS waiver programs ALTCS is an entitlement program meaning anyone who meets both the medical and financial eligibility requirements is guaranteed coverage with no waiting list. This is a significant advantage for Arizona residents.
Income limit — single applicant The income limit for a single ALTCS applicant is $2,982 per month in 2026. Arizona is an income cap state meaning applicants whose income exceeds this limit must establish a Qualified Income Trust — also called a Miller Trust or QIT — to qualify.
Asset limit — single applicant A single applicant must have $2,000 or less in countable assets. Exempt assets include the primary residence with equity up to $752,000 if the applicant intends to return home, one vehicle regardless of value provided it is used for medical transport or essential needs, personal belongings and household furnishings, and irrevocable burial trusts up to $9,000. Note that IRAs and 401(k)s are counted as countable assets in Arizona.
Married couples — one spouse applying When only one spouse applies for ALTCS the applicant spouse may retain $2,000 in countable assets. 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. Arizona calls this the Community Spouse Resource Deduction rather than the Community Spouse Resource Allowance used in most states.
Monthly Maintenance Needs Allowance Arizona calculates the Monthly Maintenance Needs Allowance based on the community spouse’s actual housing costs rather than a standard amount. The maximum allowance is $4,066.50 per month in 2026. Arizona families with high housing costs in the Phoenix or Tucson metro areas often benefit significantly from this calculation.
Personal needs allowance Arizona nursing home ALTCS recipients are allowed to keep $149.10 per month as a personal needs allowance in 2026. The remainder of income is applied toward the cost of care.
Look-back period Arizona has a 60-month — five year — look-back period for ALTCS nursing home and HCBS applications. 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 Arizona requires Medicaid estate recovery for recipients aged 55 and older. After an ALTCS recipient dies the state seeks reimbursement from the estate for long term care costs paid. The home is the most common recovery target when no exempt spouse or qualifying dependent remains. Planning with an elder law attorney can help protect assets from estate recovery.
How to apply for Arizona ALTCS Applications can be submitted online at healthearizonaplus.gov, by phone at 1-855-432-7587, or in person at your local ALTCS office. The application process typically takes 60 to 90 days and can take up to 6 months in complex cases.
Arizona Medicaid administering agency Arizona Health Care Cost Containment System — azahcccs.gov
Arizona Estate Tax — 2026
No Arizona state estate tax Arizona does not impose a state estate tax a state inheritance tax or a state gift tax. Arizona eliminated its inheritance estate and gift taxes in 2006. This makes Arizona one of the most favorable states for wealth transfer.
Federal estate tax Arizona residents may be subject to the federal estate tax. The federal estate tax exemption is $15,000,000 per person in 2026 following enactment of the One Big Beautiful Bill Act. The exemption is portable between spouses meaning a married couple can protect up to $30,000,000 from federal estate tax with proper planning. The top federal estate tax rate is 40 percent on amounts above the exemption.
No Arizona gift tax Arizona does not impose a state gift tax. Federal gift tax rules apply — the annual gift tax exclusion is $19,000 per recipient in 2026.
Community property Arizona is a community property state. Assets acquired during marriage are generally considered equally owned by both spouses. Community property receives a full step-up in tax basis when the first spouse dies which can significantly reduce capital gains taxes when assets are later sold. This is a valuable benefit for Arizona married couples and their heirs.
Step-up in basis Inherited assets in Arizona receive a stepped-up tax basis to fair market value at the date of the original owner’s death. This eliminates capital gains taxes on all appreciation that occurred during the original owner’s lifetime which can save heirs significant amounts when inherited property is sold.
Arizona income tax Arizona has a flat individual income tax rate of 2.5 percent — one of the lowest flat rates in the country. Social Security benefits are not taxed in Arizona. Retirement account distributions are fully taxed at the state income tax rate. Arizona’s low income tax rate makes it attractive for retirees.
Small estate procedures Arizona allows simplified estate administration for smaller estates. Personal property under $200,000 can be transferred using a small estate affidavit after 30 days. Real property under $300,000 can be transferred using a simplified procedure after six months. These procedures avoid full probate for qualifying estates.
Arizona Advance Directives
Arizona law recognizes the following advance directive documents:
Arizona 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 one adult who is not the healthcare agent or notarized.
Arizona Living Will Documents your wishes regarding life-sustaining treatment when you have a terminal condition or are in a persistent vegetative state. Can be included within the Health Care Power of Attorney document.
Arizona Mental Health Care Power of Attorney A separate document that names an agent to make mental health treatment decisions on your behalf. Arizona is one of few states with a specific mental health advance directive.
Arizona Prehospital Medical Care Directive — Do Not Resuscitate A physician order directing emergency personnel not to perform CPR. Arizona uses a specific orange colored DNR form that must be immediately accessible.
Arizona POLST — Physician Orders for Life-Sustaining Treatment Arizona uses a POLST form for seriously ill patients that documents specific medical orders regarding CPR hospitalization and artificial nutrition. Must be signed by a physician or nurse practitioner.
Arizona Advance Directive Registry Arizona 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 Arizona advance directive forms Free Arizona-specific advance directive forms are available at caringinfo.org and from the Arizona Secretary of State’s office at azsos.gov.
Arizona Key Agencies and Resources
Arizona Health Care Cost Containment System — AHCCCS Administers Arizona Medicaid including the ALTCS long term care program. Website: azahcccs.gov Health-e-Arizona Plus Portal: healthearizonaplus.gov Phone: 1-855-432-7587 or 602-417-7000
Arizona Department of Economic Security — Division of Aging and Adult Services Coordinates programs and services for older Arizonans including home care nutrition programs caregiver support and the Arizona SHIP program for free Medicare counseling. Website: des.az.gov/aging Phone: 1-602-542-4446 Arizona SHIP — free Medicare counseling: 1-800-432-4040
Arizona Area Agencies on Aging Arizona is served by several Area Agencies on Aging that coordinate local services for older adults and caregivers. The largest is the Area Agency on Aging Region One serving Maricopa County — the Phoenix metro area. Eldercare Locator: 1-800-677-1116 or eldercare.acl.gov Area Agency on Aging Region One: aaaphx.org — 1-602-264-2255
Arizona Long Term Care Ombudsman Program Advocates for the rights of residents of nursing homes and assisted living facilities. Investigates complaints and helps resolve problems free of charge. Website: des.az.gov/aging/long-term-care-ombudsman Phone: 1-602-542-6454
Arizona State Bar Lawyer Referral Service Connects Arizonans with attorneys including those who specialize in elder law and estate planning. Website: azbar.org Phone: 1-602-252-4804
Community Legal Services Provides free civil legal services to low income Arizonans including seniors on issues related to Medicaid benefits housing and elder law. Website: clsaz.org Phone: 1-602-258-3434
Arizona Veterans Resources
Arizona Department of Veterans Services — ADVS Provides services and benefits to Arizona veterans and their families including free VA claims assistance and connections to Arizona veterans resources. Website: azdvs.gov Phone: 1-602-255-3373
Arizona State Veterans Homes Arizona operates veterans homes providing long term care to eligible veterans and their spouses. Facilities are located in Phoenix Flagstaff and Tucson. Website: azdvs.gov/veterans-homes
Arizona Veterans Donation Fund Provides supplemental support to Arizona veterans in financial need. Contact ADVS for details.
Arizona Senior Property Tax Benefits
Senior Property Valuation Protection — Property Tax Freeze Arizona homeowners aged 65 and older who meet income and residency requirements may qualify to have the assessed value of their primary residence frozen preventing increases in the taxable value. The program requires application through the county assessor’s office and must be renewed every three years. Income limits apply and vary by county.
Homestead Exemption Arizona does not have a traditional homestead exemption but offers the Senior Property Valuation Protection program described above as the primary property tax relief for qualifying seniors.
Property Tax Deferral Arizona does not currently offer a statewide property tax deferral program for seniors. Contact your county treasurer’s office for information about any local assistance programs available in your county.
Finding Elder Law and Estate Planning Attorneys in Arizona
The following resources can help you find a qualified elder law or estate planning attorney in Arizona:
- National Academy of Elder Law Attorneys — NAELA — naela.org — searchable directory by location
- Arizona State Bar Lawyer Referral Service — azbar.org — 1-602-252-4804
- Arizona Chapter of NAELA — Arizona has an active NAELA chapter with members throughout the state
- Community Legal Services — clsaz.org — free legal assistance for income-qualifying seniors in the Phoenix area
- Southern Arizona Legal Aid — sazlegalaid.org — free legal assistance for income-qualifying seniors in southern Arizona
The information on this page is for general informational purposes only and does not constitute legal or financial advice. Arizona ALTCS rules and other figures change frequently. Always verify current information with the relevant agency or a licensed attorney. Laws vary and individual circumstances differ significantly.
Last updated: April 2026