See what you owe as a household employer for a nanny, babysitter, housekeeper or home caregiver. Enter the pay per paycheck and how many paychecks you will pay this year; the calculator checks the IRS thresholds and gives your employer taxes, what to withhold and the employee’s net pay, yearly and per paycheck.
Last updated:
Pay
$
$
Only if you both agreed to withholding (Form W-4).
Unemployment taxes
%
From your state’s rate notice; new employers often get 1%–4%.
$
Varies by state, from $7,000 to over $70,000.
%
Extra FUTA in credit-reduction states (CA 1.2% for 2025).
Enter your values to see the result.
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How to use the Nanny Tax Calculator
Pick the tax year and how often you pay your employee.
Enter the gross pay per paycheck and the number of paychecks you will pay this year.
Choose who the employee is if they are family or under 18.
Enter your state unemployment rate and wage base from your state notice.
Press Calculate to see your taxes, withholding and net pay.
Household employment tax thresholds and rates
Tax
Applies when
Employer pays
Employee pays
Social Security
Cash wages ≥ $3,000 in 2026 ($2,800 in 2025)
6.2% up to $184,500 (2026)
6.2% (withheld)
Medicare
Same threshold
1.45%, no cap
1.45% (withheld)
FUTA
$1,000+ cash wages in any calendar quarter
6.0% of first $7,000, minus up to 5.4% credit = 0.6%
Nothing
State unemployment
Set by state (often $1,000 per quarter)
State rate × state wage base
Nothing in most states
Federal income tax
Only if both agree
Nothing
Amount from W-4
Sources: IRS Publication 926 and Schedule H instructions; SSA domestic employee coverage threshold. Some states also charge disability or paid-leave contributions, which are not included here.
Worked example
A full-time nanny earns $700 a week for 52 weeks: $36,400 of wages. Employer Social Security is $36,400 × 6.2% = $2,256.80 and Medicare $36,400 × 1.45% = $527.80. FUTA is $7,000 × 0.6% = $42.00, and state unemployment at 2.7% of a $7,000 wage base is $189.00. Your employer taxes total $3,015.60 a year, about $57.99 per weekly paycheck. You also withhold $53.55 per week (7.65%) from the nanny’s pay, so the nanny takes home $646.45 before any income tax withholding.
Nanny payroll checklist
Before the first paycheck: get an EIN from the IRS, register with your state for unemployment insurance, have the nanny complete Form I-9 and, if withholding income tax, Form W-4.
Every paycheck: withhold 7.65% (unless you pay it yourself) and keep a pay record with hours, gross pay and deductions.
During the year: raise your own W-4 withholding or make quarterly estimated payments to cover Schedule H; file state unemployment reports.
By January 31: give the nanny Form W-2 and file W-2 and W-3 with the Social Security Administration.
At tax time: attach Schedule H to your Form 1040.
Frequently asked questions
When do I have to pay nanny taxes?
You owe Social Security and Medicare taxes if you pay a household employee cash wages of $3,000 or more in 2026 ($2,800 in 2025). You owe federal unemployment (FUTA) tax if you pay total cash wages of $1,000 or more to household employees in any calendar quarter of this year or last year. Most states use a similar $1,000-per-quarter test for state unemployment.
How much are nanny taxes?
Social Security is 6.2% and Medicare 1.45% from both you and the employee (15.3% combined). FUTA is 6% of the first $7,000 of wages, reduced to 0.6% ($42 maximum) when you pay state unemployment on time. State unemployment rates and wage bases vary by state. On $30,000 of wages, employer taxes are typically around $2,300 to $2,700 a year.
Do I have to withhold income tax from my nanny’s pay?
No. Federal income tax withholding is only required if you and the employee agree to it, usually with a Form W-4. Social Security and Medicare must be withheld once wages reach the threshold, unless you choose to pay the employee’s share yourself.
Who is exempt from nanny taxes?
Social Security and Medicare don’t apply to wages paid to your spouse, your child under 21, your parent (with some exceptions) or an employee under 18 whose main occupation is not household work, such as a student babysitter. FUTA doesn’t apply to wages paid to your spouse, your child under 21 or your parent.
How do I pay nanny taxes?
You report federal household employment taxes on Schedule H with your Form 1040 and pay them with your income tax, so raise your own withholding or make estimated payments during the year to avoid an underpayment penalty. You also need an EIN, must give the employee a W-2 by January 31 and file Forms W-2 and W-3 with the SSA. State unemployment is usually paid quarterly to the state.
Is a nanny an employee or a contractor?
A nanny who works in your home, on your schedule and under your direction is almost always your household employee, not an independent contractor. That is true even if they work for several families. A worker from an agency that controls their work may be the agency’s employee instead.
Can nanny taxes be offset by tax breaks?
Yes. Paying on the books lets you use a dependent care FSA (up to $7,500 per household from 2026, $5,000 before) or claim the child and dependent care credit for qualifying care, which can offset much of the employer tax cost.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.