SNAP takes 20 percent off a household’s earned income before the program tests what is left against the net income limit, according to the Department of Agriculture’s eligibility page, which was updated October 1, 2026. The deduction is one of several, and it applies to wages and other earnings only. For a household of one, the page puts the net limit at $1,330 a month and the gross limit at $1,729.

Two income tests, one deduction

USDA defines gross income as “a household’s total, non-excluded income, before any deductions have been made,” and net income as gross income minus allowable deductions. Most households must meet both limits. The gross limit is 130 percent of the poverty level and the net limit is 100 percent, and the table that applies runs from October 1, 2026 through September 30, 2027.

The page adds that “a household with an elderly or disabled person only has to meet the net income limit.” The testing order is spelled out as well: if gross monthly income is less than the limit for the household’s size, the next step is to work out net income.

That order answers the question many working households ask: does pay count in full against the limit? Against the gross limit it does, with no deductions at all. Against the net limit it does not, because the 20 percent comes off first, followed by the other deductions the household qualifies for.

The 20 percent is a flat share of earnings, but the dependent care, medical and shelter deductions depend on what a household reports at a review. The SNAP & Medicaid Renewal Organizer includes 51 state packs that set out which deductions each state asks to see documented.

Open your state’s pack in the SNAP & Medicaid Renewal Organizer →

A worked example for one person

For illustration, take a one-person household earning $1,600 a month from a job. Its gross income is $1,600, under the $1,729 gross limit. The 20 percent deduction removes $320, leaving $1,280. The page lists a standard deduction of $217 for household sizes of one to three people, which brings the figure to $1,063, well under the $1,330 net limit.

Put in dollars, every $100 of monthly pay counts as $80 against the net limit before any other deduction applies. With only the 20 percent and the $217 standard deduction, a one-person household’s pay would clear the $1,330 net limit up to about $1,933 a month, so the $1,729 gross limit is the one that binds first for a household that must meet both.

The numbers change with the household. The standard deduction is higher for some larger households and different in Alaska, Hawaii, the U.S. Virgin Islands and Guam, according to USDA.

The other deductions on the list

USDA’s page lists these beyond the 20 percent and the standard deduction:

• A dependent care deduction when needed for work, training or education. The page states no dollar cap.
• Medical expenses for elderly or disabled members that are more than $35 for the month, when not paid by insurance or someone else.
• Legally owed child support, in some states.
• Excess shelter costs, meaning shelter costs that are more than half of the household’s income after other deductions. The deduction is capped at $769 unless one person in the household is elderly or disabled.
• A standard shelter deduction of $205.66 for homeless households.

The medical deduction has a catch. The $35 is a threshold, so only the amount above it is deducted, and only for members who are elderly or disabled.

Where the deductions are decided

USDA’s fiscal 2027 cost-of-living memo, which updates the program’s yearly figures, gives no number for the dependent care or medical deductions, so those two turn on what a household reports. The earned income deduction is the exception: it is a flat 20 percent with nothing to look up.

What to bring to a SNAP review

The free official route is USDA’s SNAP eligibility page, which lists every deduction and the current income tables. The state SNAP office handles the application, and its caseworker can say which deductions a household has on file.

Before a review, gather recent pay stubs, since the 20 percent is based on earned income. Add receipts for out-of-pocket medical bills above $35 for any elderly or disabled member, records of dependent care costs tied to work, training or education, and shelter bills such as rent and utilities. Child support orders matter in states that count them.

USDA’s own wording is the checklist: the 20 percent deduction from earned income, the $217 standard deduction for one to three people, and a net limit of $1,330 a month for a household of one.

A $35 medical threshold and no receipts

A household that cannot show the medical bills above $35 or the dependent care costs at a review loses deductions that would have lowered its net income. The SNAP & Medicaid Renewal Organizer pairs a renewal and reporting calendar with 51 state packs, so the review date and the proof each state asks for are written down ahead of time.

Set the review date and proof list in the SNAP & Medicaid Renewal Organizer →

This article was produced with AI assistance and edited for accuracy against the sources linked above.