Press Release  Governor Healey Announces Major Tax Relief for Health Care Workers

Boston — Today, Governor Maura Healey announced that thousands of Personal Care Attendants (PCAs) 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,” said Governor Healey. “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. I’m proud of Secretary Mahaniah and his team for pursuing this ruling that will save PCAs thousands of dollars every year and grateful for the PCA Workforce Council’s efforts to support our hardworking PCAs.” 

The Executive Office of Health and Human Services, through the PCA Workforce Council, requested a ruling from the Internal Revenue Service (IRS) 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.”  
 

Statements of Support: 

State Representative Jeffrey Rosario Turco (D - Winthrop):

"At a time when our primary care provider network is strained, I applaud Governor Healey for making this critical investment in care at Neighborhood Health in East Boston. Countless residents of Winthrop and Revere will benefit from this wise decision."

Rebecca Gutman, 1199SEIU Vice President of Homecare:  

"1199SEIU represents over 60,000 Personal Care Attendants (PCA) who provide essential care to seniors and people with disabilities across the Commonwealth. We applaud the Healey Administration for implementing cost saving measures that will help PCAs struggling to make ends meet, especially as healthcare insurance costs rise and access to SNAP benefits are compromised. As 1199SEIU enters collective bargaining with the PCA Workforce Council in 2026, we are hopeful this step reflects a shared commitment with the Healey administration in lifting up wages and benefits to ensure quality homecare remains accessible for all.” 

Tamara Huntley, PCA Workforce Council Member and Self-Advocacy Liaison, Massachusetts Developmental Disabilities Council: 

“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.” 

Justin Graceffa, PCA Workforce Council Vice Chair: 

“As a longtime consumer-employer and vice chair of the PCA Workforce Council, I have seen firsthand how hard PCAs work and how dedicated they are to the people they support. Even though they do amazing work, PCAs are often overlooked and underpaid. This tax break will help address that issue and allow PCAs to continue providing high-quality care. I am proud to live in a state that recognizes the value of home health care workers and takes steps to support them.” 

Kristen McCosh, PCA Workforce Council Member and Disability Commissioner, City of Boston: 

“I have been a MassHealth member in the PCA Program for over 40 years. During this time, I have seen many changes in the PCA program. I believe that this change will be extremely impactful for PCAs by augmenting their income significantly. I am proud to work alongside other PCA consumers on the PCA Workforce Council and I thank Governor Healey for supporting and implementing this policy.” 

Amber Pettell, PCA Workforce Council Member: 

"As a PCA workforce council member I am proud to see the Healey Administration implementing with the Council’s support the IRS decision to provide tax relief for PCAs who live with their consumer-employers. This shows that the Commonwealth values the work done by PCAs and is committed to a strong workforce. Such commitment benefits not only workers but those who rely on PCA support as it will undoubtedly make finding and keeping skilled PCAs easier."

Karen Bureau, PCA Workforce Council Member:  

“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.” 

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