On Dec. 22, Gov. Maura Healey announced that thousands of Personal Care Attendants will no longer be subject to state or federal income taxes, which is projected to save them $5,000 or more per year. PCAs are health care professionals who help people 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,” Healey said. “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.
“During an affordability crisis in our country, our Administration is exploring every action we can take to ease financial burdens on Massachusetts residents and support critical segments of our workforce,” said Secretary of Health and Human Services Kiame Mahaniah, MD, MBA, former chair of the PCA Workforce Council. “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.”
The Healey-Driscoll Administration has implemented other beneficial changes for the PCA workforce since 2023 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.
“The mission of the PCA Council is to ensure access to a quality workforce,” said PCA Workforce Council Executive Director Jocelyn Gordon. “By securing this tax relief, we’re not only enabling PCAs to keep more of their income, but we are significantly improving our state’s ability to hire and retain top-quality workers who do this critical work.”
PCA Workforce Council Member and Self-Advocacy Liaison, Massachusetts Developmental Disabilities Council, Tamara Huntley, said, “As a longtime consumer employer and proud member of the Workforce PCA Council, I am thrilled to be part of such an empowering change. I am deeply grateful to my PCAs, whose support allows me to live independently and fully within my community. The administration’s commitment to uplifting the voice of the disability community strengthens self-directed care and honors true independence. These efforts will make it easier to find and employ PCAs, building a stronger workforce and a better future across the Commonwealth.”
PCA Workforce Council Member Karen Bureau said, “I have been utilizing PCA services for 38 years, and in that time, I was able to attend college, work full time, and be a contributing member of my community. With the progression of my Muscular Dystrophy my care has become more complex as such I now require a live-in PCA who provides vital services so that I can live independently and work part time from home. This new ruling will ensure additional access to PCAs in a time of a national shortage of home care workers! Thanks to everyone who worked hard on this issue.”
