At present, in addition to the District of Columbia, the following 13 states have a paid family medical leave program (PFML):
- California
- Colorado
- Connecticut
- Delaware
- Maine
- Maryland
- Massachusetts
- Minnesota
- New Jersey
- New York
- Oregon
- Rhode Island
PFML deductions are after-tax deductions. Additionally, "employer pick-up" contributions are also treated as taxable wages. Beginning in 2025, you must include in income on the federal income tax return the full amount of the taxpayer's contributions to a PFML program. A taxpayer who itemizes deductions on Schedule A can also include the amounts contributed in the amount of state and local taxes paid.
Note that while family leave benefits are treated as taxable income, medical leave benefits are not taxable if they are tied to employee contributions, rather than employer contributions.
You should research the state's individual tax return instructions to determine whether the state taxes PFML and/or whether it needs to be reported on the taxpayer's state tax return. You can navigate to the state instructions by starting with the state knowledgebase link below.
Additional Information:
State Tax Information For All States
IRS Revenue Ruling 2025-4, tax treatment and reporting requirements for PFML contributions and benefits
IRS Revenue Ruling 2026-6, transitional relief related to the requirements of RR 2025-4