👶 Nanny Tax Calculator
Calculate Household Employee Payroll Taxes for 2026
⚠️ 2026 Nanny Tax Thresholds
- Social Security & Medicare: Required if you pay $2,700+ in 2026
- FUTA (Unemployment): Required if you pay $1,000+ in any quarter
- Income Tax Withholding: Optional unless employee requests
📊 Understanding Nanny Tax
The nanny tax calculator helps household employers determine their payroll tax obligations for 2026. If you pay a nanny, housekeeper, caregiver, gardener, or other domestic worker $2,700 or more in cash wages during the year, you become a household employer with specific tax responsibilities. You must withhold and pay Social Security (6.2%) and Medicare (1.45%) taxes—split 50/50 with your employee—and pay federal unemployment tax (FUTA). This calculator computes your exact employer costs, employee withholdings, and helps you stay compliant with IRS requirements so you can issue an accurate W-2 come January.
📝 How to Use the Nanny Tax Calculator
- Enter Annual Cash Wages: Input the total amount you'll pay your household employee for the calendar year before any deductions.
- Select Pay Frequency: Choose how often you pay (weekly, bi-weekly, semi-monthly, or monthly) to see per-pay-period costs.
- Indicate Employee Age: If the employee is under 18 and household work isn't their primary occupation, they may be exempt from FICA.
- Enter State Unemployment Rate: Your SUTA rate varies by state and your claims history (typically 2-6%).
- Set Withholding Preferences: Choose whether to withhold federal income tax (optional) and whether you'll cover the employee's share of FICA.
- Click Calculate: View your employer tax costs, employee withholdings, and the employee's annual take-home pay.
📐 Nanny Tax Formula & Calculation Method
Social Security Tax (Each Party)
Both employer and employee pay 6.2% of gross wages for Social Security. The total combined rate is 12.4%. For 2026, the wage base limit is $176,100.
Medicare Tax (Each Party)
Both parties pay 1.45% for Medicare with no wage cap. High earners may owe additional Medicare tax, but this rarely applies to household workers.
Total FICA (Combined Employer + Employee)
FICA combines Social Security and Medicare. The total 15.3% is split equally—7.65% from employer, 7.65% from employee (unless employer covers both shares).
FUTA Tax (Employer Only)
Federal Unemployment Tax is 6% on the first $7,000 of wages, but reduced to 0.6% (maximum $42/year per employee) if you pay SUTA to a qualifying state.
📊 Nanny Tax Examples
Example 1: Part-Time Nanny ($15,000/year)
Scenario: The Wilson family pays their part-time nanny $15,000 for after-school care.
Inputs: Wages: $15,000 | SUTA Rate: 2.7% | Employee pays their share
Calculation:
- Employer SS: $15,000 × 6.2% = $930
- Employer Medicare: $15,000 × 1.45% = $217.50
- FUTA: $7,000 × 0.6% = $42
- SUTA: $7,000 × 2.7% = $189
Result: Employer's Annual Tax Cost: $1,378.50 (~9.2% of wages)
Example 2: Full-Time Nanny ($40,000/year)
Scenario: The Chen family employs a full-time live-out nanny at $40,000 annually.
Inputs: Wages: $40,000 | SUTA Rate: 3.0% | Employee pays their share
Calculation:
- Employer SS: $40,000 × 6.2% = $2,480
- Employer Medicare: $40,000 × 1.45% = $580
- FUTA: $7,000 × 0.6% = $42
- SUTA: $7,000 × 3.0% = $210
Result: Employer's Annual Tax Cost: $3,312 (8.3% of wages)
Example 3: Live-In Caregiver (Covering Employee FICA)
Scenario: The Martinez family hires a live-in elder caregiver for $30,000 and offers to pay both FICA shares.
Inputs: Wages: $30,000 | SUTA Rate: 2.5% | Employer covers employee's FICA
Calculation:
- Employer SS (both shares): $30,000 × 12.4% = $3,720
- Employer Medicare (both shares): $30,000 × 2.9% = $870
- FUTA: $7,000 × 0.6% = $42
- SUTA: $7,000 × 2.5% = $175
Result: Total Employer Cost: $4,807 (16% of wages) | Employee take-home: Full $30,000
📊 2026 Nanny Tax Requirements & Rates
| Tax Type | Rate | Who Pays | Threshold |
|---|---|---|---|
| Social Security | 6.2% | Both (50/50) | $2,700+ wages |
| Medicare | 1.45% | Both (50/50) | $2,700+ wages |
| FUTA | 0.6% | Employer only | $1,000+/quarter |
| State Unemployment | Varies | Employer only | Varies by state |
| Federal Income Tax | Varies | Employee | Optional withholding |
Source: IRS Publication 926 - Household Employer's Tax Guide 2026
💡 Important Tips for Household Employers
- Get an EIN First: Apply for an Employer Identification Number at IRS.gov before your first payroll. It's free and instant online.
- Don't Misclassify: The IRS considers most household workers employees, not contractors. You control their schedule and work—that's an employment relationship.
- Under-18 Exemption: If your worker is under 18 and household work isn't their primary occupation (e.g., a student babysitter), you may not owe FICA on their wages.
- Keep Good Records: Track hours, payments, and tax withholdings. You'll need this for Schedule H and to issue an accurate W-2 by January 31.
- Use Schedule H: Report household employment taxes on Schedule H attached to your personal Form 1040—not a separate business return.
- Consider Covering FICA: Some employers pay both shares of FICA as a benefit. This makes the job more attractive but increases your cost by 7.65%.
🔗 Related Calculators
❓ Frequently Asked Questions
📚 Official IRS Resources
- IRS Publication 926 (Household Employer's Tax Guide)
- Schedule H (Household Employment Taxes)
- Social Security Administration - Employer Information
Created by Omnicalculator.space — Your trusted source for household employer tax calculators.
Last Updated: January 2026 | IRS Publication 926