How Much Do Family Members Get Paid for Caregiving?

September 18, 2025 Team Carepolicy.us

Key Highlights

Family members can sometimes be paid caregivers, but pay depends on the state, Medicaid eligibility, and specific support programs.
Hourly caregiver pay generally ranges from $12--$25 per hour, with higher pay in states like California and New York.
Medicaid Home- and Community-Based Services (HCBS) waivers are the primary way family members receive pay.
Other funding sources include Veterans programs, state caregiver support programs, tax credits, and private-pay arrangements.
Not all family caregivers qualify; eligibility is based on income, care needs, and program rules (some states exclude spouses, while others include them).
Caregivers should expect application processes, documentation requirements, and potential waitlists for benefits.

The Caregiving Landscape in the U.S.

More than 53 million Americans provide unpaid care to a loved one, often an elderly parent, a spouse with disabilities, or a child with special needs. While caregiving is a labor of love, it comes with financial sacrifices. Many caregivers leave the workforce or reduce their hours, leading to financial strain.

The good news: in many states, family caregivers can be compensated for the care they already provide. The amount varies, but understanding the programs available, eligibility rules, and pay rates is the first step toward financial support. For expert guidance on navigating home care regulations and licensing, consider our Licensing Consultation Service to ensure compliance and support for your caregiving needs.

Ways Family Members Can Get Paid for Caregiving

There is no single national program that pays caregivers. Instead, funding comes from a mix of Medicaid, state-level programs, Veterans Affairs, and federal benefits.

1. Medicaid Home- and Community-Based Services (HCBS) Waivers

Found in nearly every state.
Allow Medicaid recipients to receive care at home instead of in a nursing facility.
Recipients can often hire a family member as their caregiver, and the state Medicaid program pays that caregiver.
Typical pay: $12--$20/hour depending on the state.
Some states allow spouses and parents of minors; others limit payment to adult children or extended family.

For more details on HCBS, visit the official Medicaid HCBS page.

2. Consumer-Directed or Self-Directed Care Programs

Programs that let care recipients choose their caregiver (often called "Cash and Counseling" or "Self-Directed Services").
The individual gets a care budget from Medicaid and can hire a family member directly.
States like New York (CDPAP), Texas (Self-Directed PAS), and California (IHSS) use this model.
Pay can be $15--$21/hour in some states.

3. State-Specific Caregiver Pay Programs

Some states go beyond Medicaid and offer caregiver pay or stipends:

California In-Home Supportive Services (IHSS): Pays family caregivers $16--$21/hour depending on county.
New York CDPAP (Consumer Directed Personal Assistance Program): Adult children and even spouses can be paid caregivers. Pay averages $17--$21/hour.
Colorado In-Home Support Services (IHSS Program): Allows family to be hired as caregivers under Medicaid.
Washington WA Cares Fund: Provides long-term care benefits that can be used to pay family caregivers.
Minnesota PCA Program: Pays family caregivers hourly rates set by Medicaid.

To customize policies for your state-specific needs, explore our Customized Policies and Procedures.

4. Veterans Benefits

Veterans have access to caregiver pay through:

Veteran-Directed Care (VDC): Provides veterans with a flexible budget to hire family caregivers.
Program of Comprehensive Assistance for Family Caregivers (PCAFC): Offers stipends, health benefits, and training for caregivers of eligible veterans.
Stipends can be significant---sometimes $1,500--$2,500 per month, depending on veteran care needs.

5. Tax Benefits and Indirect Financial Support

Dependent Care Tax Credit: Caregivers may qualify if their loved one is considered a dependent.
State tax deductions or credits for caregiving expenses (varies by state).
Paid Family Leave Programs in states like California, New Jersey, and New York allow caregivers to take time off work with partial pay.

6. Private Pay or Long-Term Care Insurance

Families with resources sometimes pay relatives directly as caregivers.
Some long-term care insurance policies reimburse for family-provided care.
Contracts should be documented to avoid Medicaid eligibility issues later.

How Much Do Family Caregivers Get Paid?

Payment varies widely depending on location, program, and type of care provided.

Here are typical ranges:

State/Program	Estimated Pay	Notes
California (IHSS)	$16 -- $21/hour	Rates set by county
New York (CDPAP)	$17 -- $21/hour	Includes spouses and adult children
Texas (Self-Directed PAS)	$12 -- $15/hour	Medicaid waiver program
Florida (Home Care for the Elderly Program + Waivers)	$11 -- $14/hour	Limited funding
Pennsylvania (FreedomCare, Community HealthChoices)	$12 -- $15/hour	Medicaid-based
Washington (WA Cares Fund)	State-funded benefit	Launching in phases
National Average	$12 -- $25/hour	Varies widely

Who Qualifies for Caregiver Pay?

To qualify, caregivers and their loved ones usually must meet certain criteria:

1. Care Recipient Eligibility

Must be Medicaid-eligible in most cases.
Must require assistance with daily living activities (ADLs): bathing, dressing, mobility, eating, toileting.

2. Caregiver Eligibility

Must be an adult (18+).
May need to pass a background check and complete caregiver training.
Some programs exclude spouses or parents of minors.

3. State Rules

Each state sets its own limits on who can be paid and how much.
Some states cap hours or pay rates.

Steps to Get Paid as a Family Caregiver

Check Medicaid Eligibility -- Apply for your loved one through your state Medicaid office.
Research State Programs -- Look for HCBS waivers, consumer-directed programs, and caregiver stipends.
Apply for Waivers -- Many programs require applications and may have waitlists.
Document Care Needs -- Medical assessments help prove eligibility.
Complete Training -- Some states require caregiver training or certification.
Get Approved and Begin Caregiving -- Once approved, you'll track hours and submit timesheets to get paid.

For assistance with licensing and compliance in home care, our Licensing Consultation Service can help you get started efficiently.

Challenges and Limitations

Not all states offer caregiver pay. Some provide only indirect support like respite care.
Waitlists for HCBS waivers can be months or years long.
Pay rates may be lower than professional caregiving jobs.
Paperwork and compliance can be overwhelming for families new to Medicaid.

Conclusion

Family caregiving is essential but often financially challenging. The amount family caregivers get paid depends on where they live, their loved one's eligibility, and available programs. On average, family caregivers receive between $12 and $25 per hour, with states like California and New York offering the highest pay through IHSS and CDPAP.

If you're caring for a loved one, explore Medicaid waivers, state programs, and veterans benefits. While the process can be complex, financial support is available---and it can make caregiving more sustainable.

At CarePolicy.US, we help families and providers navigate caregiving regulations, licensing, and compliance across all 50 states. To ensure your home care setup is fully compliant, check out our Policies and Procedures for Any State.

Frequently Asked Questions (FAQs)