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What income and deduction rules determine SNAP net income in 2025?
Executive summary
SNAP net income for fiscal year 2026 (applications Oct. 1, 2025–Sept. 30, 2026) is determined by taking household gross income and subtracting allowable deductions (standard deduction, shelter, dependent care, medical for elderly/disabled, etc.), with households required to have net income at or below 100% of the federal poverty line in most federal guidance (gross test often set at 130% FPL) [1] [2] [3]. States retain flexibility (some use broader categorical eligibility or higher thresholds — e.g., Washington’s Basic Food uses 200% FPL for most households) and recent federal legislation and administrative guidance have further altered eligibility and benefit calculations in late 2025 [4] [5] [6].
1. How SNAP defines “net income” and the deduction mechanics
Net income is calculated as gross monthly income minus allowable SNAP deductions; common deductions cited across guidance include the standard deduction, shelter costs (with a cap), dependent-care expenses, legally obligated child support paid, and medical expenses for elderly or disabled household members that exceed a threshold [3] [1]. The program then subtracts 30% of that net income from the program’s maximum allotment for the household size to produce the monthly benefit—this 30% “expected contribution” rule is a central part of benefit math referenced in multiple explanations [2] [7].
2. The two-step income tests: gross and net
Federal rules that many explain require most households to pass a gross income test (commonly 130% of the Federal Poverty Level) and a net income test (100% of the FPL) after deductions; households with elderly or disabled members are typically exempt from the gross test and need only meet the net-income limit [2] [1]. Multiple secondary sources repeat the 130%/100% framework for 2025–26 eligibility [2] [8] [7].
3. Allowable deductions — what typically reduces gross income
Reporting highlights several recurring deduction categories used to produce net income: the standard deduction (amount varies by household size and is updated annually), allowable shelter costs (rent or mortgage and utilities, sometimes subject to limits), dependent care and child support payments, and medical expenses for elderly/disabled members beyond a set threshold [3] [1]. Specific dollar values for those deductions and precise caps are maintained in official USDA tables that are updated each fiscal year [1].
4. State-level flexibility and divergent rules
States can expand eligibility via Broad-Based Categorical Eligibility (BBCE) or set more generous parameters; Washington State’s Basic Food program, for example, uses 200% of the FPL for most households while still applying net-income rules for elderly/disabled households at 100% FPL — showing how state policy choices diverge from the federal baseline [4]. Local rules affect which vehicle assets count, how shelter costs are calculated, and whether extra state-funded deductions apply [5] [4].
5. Recent policy changes and budget-driven adjustments (late 2025)
Several sources note policy changes and pressures in 2025: the USDA has updated FY2026 COLA-based income limits and acknowledges implementation changes from legislation such as the One Big Beautiful Bill Act of 2025 and other federal laws that may tighten time-limited eligibility for some adults [1] [5]. Separately, FNS announced a temporary reduction of maximum allotments to 50% for November 2025 benefit issuance because of funding and court orders, which changes the downstream result after net income is applied [6].
6. Practical implications for applicants and examples
Outlets summarize practical results: net monthly income limits by household size are published for FY2026 (examples circulated include a two-person net-income cutoff of $1,763 at 100% poverty in one explainer and state-specific charts showing higher caps) and benefit math examples (e.g., subtracting 30% of net income from the maximum allotment) are used widely to estimate household benefits [3] [9] [10]. Exact numbers vary by source and state; readers should consult their state SNAP office or the USDA eligibility page for the authoritative tables [1] [4].
7. Disagreements, limitations, and what’s not covered
Reporting is consistent that net income equals gross income minus allowable deductions and that net must be at or below 100% FPL for federal eligibility in 2025–26, but secondary sites differ on timing and emphasis about the November 2025 rule package and some promotional pages repeat summaries without linking to primary USDA tables [2] [8] [7]. Official USDA pages are being updated to reflect the One Big Beautiful Bill Act of 2025 but are the authoritative source for exact deduction amounts and the official FY2026 charts — available sources do not mention every deduction dollar value or precise cap in this set of excerpts, so consult the USDA eligibility page and your state SNAP office for the exact figures used to compute net income [1].
If you want, I can pull the official FY2026 deduction amounts and the full federal income-limit chart from the USDA page [1] and show a worked example for your household size and state.