Nanny Cost Calculator
A nanny's hourly rate is only part of the bill. Enter the rate, hours and extras to see the real weekly, monthly and yearly cost to your family, including employer Social Security, Medicare and unemployment taxes.
Your numbers
Hours over 40 are paid at 1.5× (overtime)
Usually 52 including paid holiday
New-employer rate varies by state
Mileage, phone, activities, payroll service
Result
Total nanny cost per year
$60,528
| Gross wages per year | $54,340 |
|---|---|
| Employer taxes per year | $4,388 |
| Cost per month | $5,044 |
| Cost per week | $1,164 |
| Extra cost vs daycare per month | $3,744 |
A nanny covers every child in the family, so compare against daycare for all of your children.
State unemployment wage bases differ from the $7,000 federal base; this is an estimate. Some states also require disability or paid-leave contributions.
Is going back to work worth it? Run the full comparisonWhat goes into nanny cost
Gross wages (with overtime above 40 hours under federal law), the employer share of Social Security (6.2%) and Medicare (1.45%), federal and state unemployment tax, plus extras like mileage and a payroll service.
When a nanny beats daycare
For one child, a full-time nanny usually costs much more than daycare. With two or three young children, or in an expensive metro, the gap narrows. A nanny share can halve the cost.
Tax breaks that help
Paying on the books lets you use a dependent care FSA and the Child and Dependent Care Credit. Use the FSA calculator to see the saving.
Frequently asked questions
How much does a nanny cost per year?
At $22 an hour for 45 hours a week, a nanny costs roughly $55,000–$60,000 a year once overtime and employer taxes are included. Rates vary widely by city.
Do I have to pay taxes for a nanny?
If you pay a household employee $3,000 or more in cash wages in 2026, you must withhold and pay Social Security and Medicare taxes, and usually federal and state unemployment tax.
Is a nanny cheaper than daycare for two kids?
Sometimes. Daycare is charged per child, while a nanny's pay rises only a little for a second child. Enter daycare for all children in the comparison field.
Do nannies get overtime?
Live-out nannies are covered by the federal overtime rule, so hours over 40 a week are paid at 1.5 times the regular rate. Some states have stricter rules.
Next steps
Sources
Results are estimates for planning. Rates change each tax year, so check the official source before you rely on them.