09/01/2026
💼 Paid Family & Medical Leave Tax Credit for Employers
Offering paid family and medical leave may do more than support your team—it may also make your business eligible for a federal tax credit.
Eligible employers can receive a credit of 12.5% to 25% of qualifying paid leave wages or eligible PFML insurance premiums, for up to 12 weeks per employee each year.
The credit may apply to leave for:
👶 Welcoming a new baby, adoption, or foster placement
❤️ Caring for an employee’s own serious health condition
👨👩👧 Caring for a spouse, child, or parent with a serious health condition
🇺🇸 Addressing certain military-family needs
🩺 Caring for an injured or seriously ill servicemember
Recent enhancements include:
✨ The credit is now permanent
✨ Eligibility may begin after 6 months of service
✨ Part-time employees working 20+ hours per week may qualify
✨ Employers may use qualifying wages paid during leave or qualifying PFML insurance premiums
✨ State and local mandated leave may help satisfy federal eligibility requirements