Nanny Payroll Tax Calculator
Hiring a household employee like a nanny comes with payroll taxes many families forget. This calculator shows the employee's FICA taxes, your matching employer share, FUTA, and the true annual cost of paying your nanny on the books.
How this calculator works
For 2026, you must withhold and pay Social Security tax (6.2% each for you and your nanny, up to the $184,500 wage base) and Medicare tax (1.45% each, with no cap). You also pay federal unemployment tax (FUTA) of 0.6% on the first $7,000 of wages after the standard state-credit. The calculator adds your employer share to the gross wages to show your true annual cost. Federal income tax withholding is separate and depends on your nanny's W-4, so it is not included here.
Frequently asked questions
Do I really have to pay nanny taxes?
Yes. If you pay a household employee $3,000 or more in cash wages in 2026, the wages are subject to Social Security and Medicare taxes. Many states also require workers' compensation for household employees.
How do I report and pay nanny taxes?
Report household wages on Schedule H, which you file with your personal tax return. You pay the taxes annually with your return, or make estimated payments during the year if you expect to owe more than $1,000.
What happens if I pay my nanny under the table?
You miss out on the deduction for wages and lose the ability to claim the child and dependent care credit. Your nanny also loses Social Security credit toward her own retirement. The IRS can assess back taxes, penalties, and interest if the arrangement is discovered.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.