How is gross and net income calculated for SNAP eligibility in 2025?

1. What “gross” and “net” mean — the working definition reporters use

Gross monthly income is the household’s total non‑excluded income before any SNAP deductions (wages, self‑employment receipts, pensions, unemployment, etc.) and before taxes or withholdings are taken out; net monthly income is gross income minus the program’s allowable deductions, such as the standard deduction, earned income deduction, and certain shelter or medical expenses, depending on household composition ^{[4] [6]}.

2. The two eligibility tests you’ll hear about in every office line

Federal rules require most households to pass both a gross‑income and a net‑income test. The gross‑income test is usually set at 130% of the federal poverty line; if a household passes that, agencies then apply deductions to arrive at net income and check net limits as well ^[1]. Households with elderly or disabled members often are exempt from the gross test and instead are judged on net income ^{[1] [7]}.

3. How deductions change gross into net — and why 30% matters

SNAP explicitly lets applicants subtract specified deductions to reach net income: an earned income exclusion (commonly 20% of earned income), a standard deduction (amounts vary by household size), allowable dependent care, medical expenses for elderly/disabled, and capped shelter costs sometimes adjusted by a standard utility allowance (SUA) chosen by the state ^{[8] [9]}. The program then expects households to spend roughly 30% of their net income on food; the benefit equals the maximum allotment for household size minus 30% of net monthly income ^{[2] [9]}.

4. Where the dollar lines come from and which table to consult

USDA publishes annual income‑eligibility tables and maximum allotments; for FY2025 (effective Oct. 1, 2024–Sept. 30, 2025) and FY2026 (effective Oct. 1, 2025–Sept. 30, 2026) those tables set the gross/net thresholds and maximum allotments that states use to compute eligibility and benefits ^{[3] [9]}. State agencies also post charts based on those federal standards (examples: New York OTDA and state SNAP pages) and may apply state options like Broad‑Based Categorical Eligibility (BBCE) that raise income or asset limits ^{[4] [10] [1]}.

5. Special cases reporters see — seniors, disabled, self‑employed, students

Households with at least one member age 60+ or disabled face different rules: they generally need only meet the net‑income test and have higher asset allowances in many states ^{[1] [7]}. Self‑employed income is often calculated differently: some states deduct business costs or apply a percentage exclusion to approximate expenses, which can materially change net income ^[5]. College students, immigrant households, and those affected by recent legislative changes (noted in reporting about 2025 reforms) can face additional eligibility twists that states must implement ^{[1] [9]}.

6. How the benefit itself is computed — a concrete formula

Once net monthly income is established, the household’s expected contribution is 30% of that net income; the household’s monthly SNAP allotment equals the maximum monthly allotment for that household size minus that 30% contribution. Practically, most households receive less than the maximum because of this subtraction; eligible 1–2 person households are guaranteed at least the program minimum benefit where applicable ^{[2] [9]}.

7. Why state practice and timing matter — practical takeaways

States implement federal rules with discretion on certain deductions (SUA, vehicle treatment) and BBCE options; income from recent months (often the most recent 30 days) is typically used for determinations, so temporary income spikes or dips can change eligibility quickly ^{[5] [10]}. For precise numbers and the current maximum allotments, consult the USDA tables and your state SNAP office because annual updates (October) and state choices alter thresholds and deductions ^{[3] [10]}.

Limitations and next steps: This overview draws only on the supplied sources and summarizes federal and state practices reported there; available sources do not mention any specific numeric deduction amounts for every state or the exact FY2026 maximum allotment table in full here — consult USDA and your state agency pages linked above for the exact dollar figures and the state‑specific application of deductions ^{[3] [10]}.