The nanny tax calculator helps household employers understand their 2026 tax obligations when paying a nanny, caregiver, or housekeeper. If you pay a household employee $2,700 or more in cash wages this year, you're required to withhold and pay employment taxes.
Household Employee Details
Check your state's SUTA rate for new employers
Understanding Nanny Tax Requirements
The nanny tax refers to the payroll taxes that household employers must pay when they hire a nanny, caregiver, or other domestic worker. These are real employer obligations, not optional.
Who Owes Nanny Tax
If you pay a household employee $2,700 or more in cash wages in 2026, you must: withhold Social Security and Medicare taxes from their wages, pay matching employer FICA, and pay federal (and possibly state) unemployment taxes. This applies to nannies, housekeepers, gardeners, and private nurses who work in your home.
The True Cost of Household Help
The employer's share of FICA adds 7.65% to your labor costs, plus FUTA taxes on the first $7,000 of wages. For a nanny earning $25,000 per year, your total tax obligation as employer adds roughly $2,500–$3,000 on top of their gross wages.
FAQ
Is this nanny tax calculator free?
Yes, completely free with no signup required.
What is the nanny tax threshold for 2026?
For 2026, the threshold for household employer taxes is $2,700. If you pay a household employee cash wages of $2,700 or more during the year, you must withhold and pay FICA taxes and report them on Schedule H.
What taxes does a household employer owe?
You must pay 7.65% employer FICA (6.2% SS + 1.45% Medicare), withhold 7.65% employee FICA, and pay FUTA (federal unemployment tax) of 6% on the first $7,000 of wages (usually reduced to 0.6% with state credit).
Can I pay my nanny as an independent contractor?
Generally no. The IRS considers household employees as employees, not independent contractors, because you control what they do and how they do it. Misclassifying household workers can lead to back taxes and penalties.
When do I report nanny taxes?
Household employer taxes are reported annually on Schedule H, which you attach to your personal Form 1040. You may also need to pay quarterly estimated taxes if you expect to owe $1,000 or more.