Many live-in home health aides will no longer have to pay income tax in Massachusetts.
Gov. Maura Healey’s office announced the change this week for personal care attendants paid through MassHealth, the state’s Medicaid program. It means an estimated 18,000 people will no longer pay state or federal income tax, according to Healey’s office.
“Attendants aren’t really paid all that well. The wage is good compared to other states, but the cost of living in this state is very high,” said Bill Henning, the executive director of the disability advocacy nonprofit Boston Center for Independent Living.
“They’re so vital,” he continued. “They enable people with disabilities, including seniors, to live independently in the community — often, stay out of a nursing facility, and otherwise just be where people want to be: at home.”
The new carve-out comes under an existing federal rule: The state’s office of health and human services requested a ruling from the IRS to grant the exemption, and received word they could.
More than 50,000 people with disabilities have a personal care attendant through Massachusetts’ program. Under their contract with the state, personal care attendants make about $20 to $25 per hour. Henning noted that because many people working in these positions pay relatively low taxes, the tax break won’t be large. But “anything that can boost the income of PCAs is fantastic,” he said.
Janice Guzman hopes it’ll make a big difference. She lives in Worcester with her mother and cares for her full time, paid for by MassHealth.
“Just to pay more of my bills, or even have money for gas or spending money,” Guzman said. “Sometimes I’m running out with my mom, on appointments and stuff or doing errands, and I get hungry. So maybe I can get a burger or something, at least, now with this new tax exemption.”
Healey’s office estimates that some attendants will save more than $5,000 per year.
There’s a widely covered shortage in live-in personal care attendants. More people need that kind of support at home, too, creating demand while the shortage is further exacerbated by increased immigration enforcement. The low pay is part of the problem, Henning said.
“Anything that makes the job more attractive is pretty important,” he said. “It’s vital work, it’s rewarding work and we’re glad to see it further supported.”
Personal care attendants filing their 2025 taxes next year can claim the exemption to receive a reimbursement of taxes that were already taken out of their income this year.
