Nanny Tax Calculator
If you pay a nanny or other household employee above the IRS threshold, you're an employer. Enter their gross pay to see what you owe, what to withhold from their wages, and the total you'll report on Schedule H.
Your numbers
Varies by state
Result
Employer taxes you owe per year
$3,674
| Social Security (6.2%) | $2,790 |
|---|---|
| Medicare (1.45%) | $653 |
| Federal unemployment (FUTA, 0.6%) | $42.00 |
| State unemployment | $189 |
| To withhold from nanny's pay (7.65%) | $3,443 |
| Total cost of employing (wages + your taxes) | $48,674 |
FUTA is shown at the 0.6% net rate after the usual state credit. Income tax withholding is optional unless your nanny asks for it.
You can pay your nanny's share yourself instead of withholding; that amount then counts as extra wages.
Is going back to work worth it? Run the full comparisonWho has to pay nanny tax
If you pay a household employee the yearly threshold set by the IRS ($3,000 or more for 2026), you must pay and withhold Social Security and Medicare taxes. If you pay $1,000 or more in any quarter, federal unemployment tax applies too.
How it's paid
You give your nanny a W-2, file Schedule H with your own tax return, and usually pay state unemployment tax quarterly. Many families use a payroll service.
Why it's worth doing
Paying on the books gives your nanny Social Security credits and unemployment cover, and lets you use a dependent care FSA or the childcare tax credit, which often offsets much of the tax.
Frequently asked questions
How much is nanny tax?
As the employer you pay 7.65% of wages for Social Security and Medicare, plus up to $42 federal unemployment tax and your state's unemployment tax. On $45,000 of wages that is roughly $3,700 a year.
What is the nanny tax threshold?
For 2026 it is $3,000 in cash wages to one household employee in the year (it was $2,800 in 2025). The IRS adjusts it each year.
Do I withhold income tax for my nanny?
Only if you both agree to it. You must withhold the employee's 7.65% Social Security and Medicare share once you are over the threshold.
Next steps
Sources
Results are estimates for planning. Rates change each tax year, so check the official source before you rely on them.