Cost to Pay a Housekeeper Legally

You pay your house cleaner $100 per week. That's $5,200 a year. Simple, right?

Not quite. Once you cross the $3,000 threshold (2026), the IRS considers you a household employer. That means employment taxes—on top of the wages you're already paying.

The numbers are smaller than most people expect, though. And there are tax credits that can offset a big chunk of the cost.

Every dollar you'll actually spend.

A Real Example: $100/Week Housekeeper

Your cleaner comes once a week and you pay $100 per visit. That's $5,200 per year—well above the $3,000 threshold.

What you actually owe as an employer.

Your employer taxes

That's roughly $11/week on top of the $100 you're already paying. Your total cost per week: about $111.

What your cleaner sees

Your housekeeper also has taxes withheld from their pay (unless they opt out of income tax withholding):

Their take-home on a $100 paycheck is roughly $92–93 after FICA withholding—before any income tax.

Your total annual cost

Compared to the $5,200 you'd pay under the table, the difference is $690/year—about $13/week.

Use our free calculator to get the exact number for your state and wage.

How the Numbers Change at Different Pay Rates

Not everyone pays $100/week. How employer costs scale.

The pattern is clear: employer taxes cost less than you'd tip at a restaurant. An extra $7–20 per week is what it takes to be fully legal.

Note: FUTA and SUTA cap at the wage base ($7,000 for FUTA, varies by state), so the percentage actually drops as wages increase.

The Penalty Math: Legal vs. Under the Table

This is where people convince themselves the savings are worth the risk. They're not.

The "savings" from paying under the table

On $5,200/year, you'd save about $570 in employer taxes plus $120 for a payroll service. That's $690/year.

Over five years, you've "saved" $3,450.

What happens when it unravels

Your cleaner files for unemployment. Or they file their own taxes and report the income. Or you have a bad parting and they report you. Any of these triggers an investigation.

Your $3,450 in "savings" just became a $3,300 loss—plus the stress of dealing with the IRS. And that's a conservative estimate. Read our full breakdown of what happens when you pay under the table.

Try NannyKeeper free →

How Much Does a Payroll Service Cost?

You can handle housekeeper payroll yourself for free—but most people prefer a service that automates the math and sends reminders. Most household payroll services charge $50–75/month, and some tack on year-end fees for W-2 generation. If you're paying a house cleaner $5,000/year, spending $600–1,100 on payroll doesn't make sense.

NannyKeeper handles the same tax calculations—all 50 states, quarterly reminders, W-2 generation—for a fraction of the price. See our best nanny payroll services roundup for a full comparison.

Tax Credits That Offset the Cost

This is the part most families don't know about. Paying legally actually unlocks tax benefits you can't claim when you pay under the table.

Child and Dependent Care Credit

If your housekeeper does cleaning while you're at work, and you have a child under 13 or a disabled dependent at home, you may qualify for the Child and Dependent Care Credit.

• One qualifying person: Credit on up to $3,000 of expenses → up to $1,050 back
• Two or more: Credit on up to $6,000 → up to $2,100 back

The credit is 20–35% of qualifying expenses, depending on your income. You'll file Form 2441 with your tax return.

If you qualify, the tax credit alone can be worth more than your entire employer tax bill.

Dependent Care FSA

If your employer offers a Dependent Care FSA, you can set aside up to $5,000 pre-tax for care expenses. For a family in the 24% tax bracket, that saves roughly $1,830 in taxes.

You can't double-dip—you use either the credit or the FSA on the same dollars, not both. But either one can dramatically reduce your net cost.

Net cost after credits

Here's the math for a family paying a $100/week housekeeper and claiming the Child and Dependent Care Credit:

After the credit, you're paying just $90 more per year than you would under the table—and you have complete peace of mind. For some families, the credit can actually make legal payroll cheaper than paying cash.

What About States With No Income Tax?

If you're in Florida, Texas, Washington, Tennessee, or another no-income-tax state, your employer costs are slightly lower because there's no state income tax withholding. But you still owe FICA (Social Security + Medicare) and SUTA.

States like California and New York add more layers—state income tax, disability insurance, paid family leave. For a state-by-state breakdown, see our housekeeper taxes by state guide.

Your total employer cost typically ranges from about 8% in low-tax states to 11% in high-tax states like New Jersey.

Is It Worth It?

How the cost comparison actually shakes out:

After tax credits, the net cost of paying legally can be as low as $90/year more than under the table. Some families actually come out ahead.

The risk of paying under the table is small in any given year—but over time, it compounds. And when it catches up to you, it costs far more than doing it right from the start.

Ready to see your exact numbers? Try the free calculator →

For a complete walkthrough of setting up payroll, head to our housekeeper payroll guide. And for more on whether your cleaner is an employee in the first place, read House Cleaner: Employee or Contractor?

FAQ

Do I owe taxes if my cleaner only comes once a month?

Only if you pay them $3,000 or more in a calendar year. At $100/visit once a month, that's $1,200/year—well below the threshold. You'd owe nothing. But if you increase visits or rates and cross $3,000, taxes kick in.

Can I deduct housekeeper wages on my taxes?

Not as a direct deduction for most families. Household cleaning isn't a business expense unless you're self-employed and use part of your home exclusively for work. However, you can claim the Child and Dependent Care Credit if your cleaner works while you're at work and you have qualifying dependents.

What's the cheapest way to handle this?

Track payments yourself and handle the quarterly filings manually—it's free but takes a few hours per quarter. The next cheapest option is NannyKeeper at $10/month, which automates all the tax math, generates pay stubs, and reminds you about quarterly deadlines. Either way, the payroll cost is tiny compared to your cleaner's wages.

My cleaner doesn't want me to withhold taxes. Can I just pay the employer share?

Federal income tax withholding is technically optional—your cleaner can choose not to have it withheld by filling out their W-4 accordingly. But FICA withholding (Social Security and Medicare) is not optional. You must withhold the employee's 7.65% share and pay your own 7.65% share, regardless of what your cleaner prefers. The alternative—paying both halves yourself—is technically extra compensation and gets taxed too.