Thousands of live-in personal care attendants in Massachusetts will no longer be subject to state or federal income taxes, according to an announcement from the state in the final days of 2025.
The exemption is projected to save these PCAs $5,000 or more per year, the state said in its release.
PCAs are health care professionals who help older people and those with disabilities keep their independence by aiding with activities of daily living, such as bathing and dressing. The exemptions apply to PCAs who live in the same home as the person they care for.
“We are working every day to identify ways to make life more affordable for the people of Massachusetts,” Gov. Maura Healey said in a released statement. “Personal Care Attendants do incredibly challenging work to care for the most vulnerable among us, and they shouldn’t have to also worry about being able to afford to meet their own basic needs. We want highly qualified, dedicated individuals to pursue and stay in careers as PCAs, but they need to be able to afford to do so.”
The Executive Office of Health and Human Services, through the PCA Workforce Council, requested a ruling from the Internal Revenue Service to confirm that income earned by PCAs for providing MassHealth-covered PCA services to MassHealth members who live with them qualifies as “Difficulty of Care” payments.
With that ruling, such income is now exempt from both federal and state income tax, which will save many PCAs $5,000 or more per year.
Approximately 60,000 people are employed as PCAs through the MassHealth PCA program, an estimated 18,000 of whom will qualify for this tax exemption. The program is a cornerstone of the state’s long-term services and supports system, and the care provided by PCAs supports more than 50,000 MassHealth members with disabilities to live independently at home and in the community.
“This exemption brings substantial tax relief for trained live-in friends and family members who are providing crucial health care services for MassHealth members with disabilities. We are proud of this step to support PCAs and the people they care for in continuing to live, work, and thrive in Massachusetts,” said Secretary of Health and Human Services Kiame Mahaniah, MD, MBA, former chair of the PCA Workforce Council.
Since 2023, the state has taken several steps to improve PCA roles, including increasing the PCA hourly wage, creating a seniority ladder, working to create a pathway to a PCA retirement plan, and increasing the number of holidays on which PCAs are paid at a premium rate of time-and-one-half the regular rate of pay.
Recent Comments