Taxes on Paid Family and Medical Leave (PFML) benefits

Learn more about the taxes you may need to pay while collecting PFML benefits and what forms to expect from the Department of Family and Medical Leave (DFML).

Taxability of PFML Benefits

On January 15, 2025, the Internal Revenue Service (IRS) issued Revenue Ruling 2025-4, which explains the tax treatment of contributions to and benefits received from state administered paid family and medical leave programs, as well as the related reporting requirements. On December 19, 2025, the IRS issued IRS Notice 2026-6 which extends the implementation transition period provided to state paid family and medical leave programs and employers for an additional year. Due to this new guidance, Massachusetts will delay its implementation of certain portions of the tax withholding and reporting requirements outlined in IRS Revenue Ruling 2025-4.

Will My PFML Benefit Payments be Taxed?

The amount of taxes that will be taken out of your PFML benefit payments will depend on several factors, including:

• Your employer’s workforce size
• The type of leave you are taking
• Your withholding choices

Federal Employment Taxes

For the calendar year 2026, DFML will not withhold FICA (Social Security and Medicare) tax from PFML benefit payments.

Income Taxes on PFML Benefits

When you apply for leave through DFML, you can choose to have state and federal income taxes withheld from your weekly benefit payments. If you decide to have income taxes withheld, you may choose between:

• Withholding 5% for state income taxes and 10% for federal income taxes (most common) or
• withholding 5% for state income taxes and a custom dollar amount for federal income taxes (refer to IRS Form W-4S for custom dollar amount withholding).

DFML will only withhold income taxes on portions of benefits that are taxable. For medical leave benefits paid to employees of employers with 25 or more employees, income taxes will be withheld on 60% of the benefit payment. For medical leave benefits paid to employees of employers with fewer that 25 employees, no income taxes will be withheld on the benefit payment, regardless of your tax withholding selection. For family leave benefits, income taxes will be withheld on 100% of the benefit payment regardless of employer size.

If you're unsure whether you want to withhold taxes, we recommend speaking with a tax professional about how IRS decisions could affect your personal tax liability. We cannot offer guidance or advice for individual tax situations.

Click here to find a tax professional to help with your taxes.

PFML Taxability for Certain Categories of Workers

The taxability of your medical leave benefits depends on whether your employer made PFML employer contributions on your behalf. In most cases, employer contributions are based on employer size: employers with 25 or more employees pay PFML employer contributions and employers with fewer than 25 employers do not. However, for certain categories of workers employer contributions are not based on employer size. This means that medical leave benefits paid to these individuals may also be subject to taxes. This includes (but is not limited to):

• Personal care attendants (PCAs), as defined in M.G.L. ch. 118E, § 70, or a consumer directed care worker, as defined in M.G.L. ch. 19A, § 4E
• Family child care providers, as defined M.G.L. ch. 15D, § 17(a)

If your job falls into one of these categories, you may be subject to tax obligations related to PFML benefit payments you receive.

If you have specific questions regarding your tax obligations, please consult a tax professional. DFML cannot offer guidance or advice for individual tax situations.

2025 1099-G Tax Forms

In January, DFML issues 1099-G forms to all employees who received PFML benefits in the prior calendar year. You will report the amount stated in box 1 of the 1099-G on your tax return for that year. 

We will mail the form to the address we have on file for you based on the information you provided to the Department.  In addition, you can download your 1099-G tax form by logging in to your PFML account. Learn more about how to download your tax form.

The 1099-G forms issued by Massachusetts DFML will show:

The Department's contact information:
Commonwealth of Massachusetts
DFML - Paid Medical Leave Benefits OR DFML - Paid Family Leave Benefits
P.O. Box 838
Lawrence, MA 01842

The Department's Employer Identification Number (EIN)

Your name and address

The last 4 digits your Social Security Number

FAQs on PFML 2025 1099-G Forms

What should I do if the benefit amount listed on my 1099-G is incorrect?

The benefit amount listed on the form should reflect the taxable Massachusetts PFML payments you received during the calendar year. Please note that the amount of taxable medical leave benefit payments listed on your form 1099-G may be different than the total amount you received during the year. This is because only some medical leave benefit payments are taxable. If you think that your 1099-G form is inaccurate, please call the DFML tax line at 855-610-9905.

I received medical leave benefits, so why is the amount in box 1 zero?

A 1099-G form for medical leave payments reports the paid medical benefits that were considered taxable (not the total amount of benefit payments). If you received medical leave benefit payments from DFML, but box 1 of your 1099-G is zero, that means that any payments you received were not considered taxable. Learn more about the taxability of PFML payments.

Why did I receive multiple 1099-G forms from Massachusetts?

If you took two different types of PFML leave in 2025 you may receive two separate 1099-G forms from DFML: one for family leave payments and one for medical leave payments.

If you received benefit payments from more than one Massachusetts program, you may receive more than one 1099-G from Massachusetts. You can tell which form is for which program by looking at the Payer Information section of the form. If the payer is the Department of Unemployment Assistance, visit theirtax page for more information.

I did not take a medical or family leave in 2025 and I did not receive any benefit payments from DFML, why did I receive a 1099-G?

If you received a 1099-G form for PFML benefits but you did not file for or receive benefits, you may be the victim of fraud. To report fraud to DFML:

• Call the Department’s Contact Center Fraud Reporting Line at [phone]

or

• Fill out the DFML Fraud Reporting form

_.

Frequently Asked Questions on PFML Taxability

Can I change my tax withholding?

If you chose to have state and federal income taxes withheld when you applied, you may change your income tax withholding by calling the DFML contact center [phone].

How are taxes on PFML benefit payments different than the PFML contributions that are withheld from my paychecks?

If you have money deducted from your regular paycheck for PFML, that money goes to the PFML Family and Employment Security Trust Fund. Income taxes that may be deducted from your PFML benefits are separate from the PFML contributions.

• PFML Paycheck Contributions to the PFML Family and Employment Security Trust Fund are withheld from Massachusetts employees’ paychecks to fund the program. Most Massachusetts employers must make payroll withholdings on behalf of their workforce to comply with the Paid Family and Medical Leave (PFML) law.
• Taxes on PFML Benefit Payments that were received in a given calendar year vary. The amount of taxes withheld on PFML benefit payments depends on several factors, including your individual taxability, your employer’s taxability, your income tax withholding choice, the type of leave taken, and your employer’s workforce size.

Date published:	April 1, 2022
Last updated:	December 29, 2025