Housekeeper Taxes by State

Federal taxes for household employers are the same no matter where you live—6.2% Social Security, 1.45% Medicare, 0.6% FUTA. Those don't change.

State taxes are where it gets interesting. Depending on where you live, you might owe state income tax withholding, state unemployment insurance (SUTA), disability insurance, paid family leave contributions, and workers' compensation coverage. Or you might owe almost nothing beyond the federal minimum.

This guide breaks down what you owe in 12 of the most common states for household employers. For the full picture on housekeeper payroll, see our complete housekeeper payroll guide.

The State-by-State Breakdown

A snapshot of 12 states where household employers are most common. For each state, we cover the SUTA rate (what you'll pay as a new employer), the SUTA wage base, whether state income tax withholding is required, and workers' comp status.

*Rates shown are base rates; your actual rate may include surcharges for disability, family leave, or workforce development funds.

Run your exact numbers through our free calculator to see your total employer cost.

No-Income-Tax States: The Simple Path

If you live in one of these nine states, you can cross state income tax withholding off your list entirely:

• Florida
• Texas
• Washington
• Tennessee
• Nevada
• New Hampshire (no tax on wages)
• South Dakota
• Wyoming
• Alaska

These states do not impose wage income tax, but SUTA is not necessarily the only state program. Washington has Paid Leave and WA Cares, Alaska has an employee UI contribution, and other insurance or workers' compensation rules can still apply. Check the state guide rather than treating “no income tax” as “no state obligations.”

That makes payroll noticeably simpler. Your total employer cost in a no-income-tax state is typically 8–9% of wages. Compare that to 10–12% in states like New Jersey or California.

If you're in a no-income-tax state and want to set up payroll, our housekeeper payroll guide has the step-by-step.

High-Compliance States: What Extra Steps You'll Need

Some states add requirements beyond basic SUTA and income tax. These are the ones that require the most attention.

California

California has some of the most comprehensive requirements for household employers.

What you'll owe:

• SUTA: 3.4% on the first $7,000 (new employer rate)
• ETT: 0.1% on the first $7,000 — California's Employment Training Tax, billed with your UI rate for an all-in 3.5%
• State income tax: Household withholding is voluntary by mutual agreement; the employee can instead pay their own California income tax
• SDI (State Disability Insurance): 1.3% of all wages (no cap since 2024)—paid entirely by the employee through payroll deduction
• Paid Family Leave (PFL): Funded through SDI contributions (no separate employer cost)

Workers' comp: Coverage generally becomes mandatory once the worker has both worked at least 52 hours and earned more than $100 in the 90 days before an injury. You can add a rider to your homeowner's insurance or purchase a separate policy.

Registration: Register with the EDD (Employment Development Department) for your state employer ID.

California's complexity is why many families there use a payroll service. The state has its own quarterly report (DE 9/DE 9C) with different deadlines and forms than the federal filings.

New York

New York requires household employers to carry multiple types of insurance.

What you'll owe:

• SUTA: 4.025% UI plus 0.075% RSF on the first $17,600
• State income tax: Household withholding is voluntary; use IT-2104 if the employee requests it
• Disability insurance: Mandatory household DBL/PFL coverage generally starts when the same worker works 20+ hours/week and 30+ days/year. A carrier sets the premium; the optional employee deduction is capped at 0.5% of wages and $0.60/week
• Paid Family Leave (PFL): Employee-funded through payroll deduction (0.432% of wages up to $95,349)

Workers' comp: Required when the same domestic worker works 40 or more hours/week, including a live-in worker only when that worker meets the 40-hour test.

NYC residents: New York City income tax follows employee residence, not merely work location. If a resident employee requests voluntary household withholding, include the city amount.

New York's Domestic Worker Bill of Rights also guarantees overtime pay, rest days, and other protections. If your cleaner works more than 40 hours/week—rare for housekeepers, but possible for combined roles—they're entitled to 1.5x overtime.

New Jersey

New Jersey stands out for one reason: its massive SUTA wage base.

What you'll owe:

• SUTA: 2.8% UI/WF on the first $44,800, plus 0.5% employer TDI for a new employer
• State income tax: Withhold based on NJ-W4
• Temporary Disability Insurance (TDI): Both employer and employee contributions
• Family Leave Insurance (FLI): Employee contribution only
• Workforce Development Fund: Small employer surcharge

Workers' comp: Required.

The result: a housekeeper earning $10,000/year in New Jersey costs roughly $90 more in SUTA alone compared to the same wage in Florida (because both hit wage bases above $7,000). New Jersey's total employer cost can reach 10–12% of wages—higher than almost any other state, especially for higher-wage workers who stay under that $44,800 wage base longer.

Massachusetts

Massachusetts has its own set of additional requirements.

What you'll owe:

• SUTA: 2.42% for a new employer on the first $15,000
• State income tax: Household withholding is voluntary; the tax rate is 5% (plus the 4% high-income surtax where applicable)
• Paid Family and Medical Leave (PFML): Both employer and employee contributions (0.318% of wages up to $184,500)
• Health insurance: Massachusetts doesn't require you to provide health insurance for a housekeeper, but the state's individual mandate means your cleaner needs their own coverage

Workers' comp: Required.

What "Workers' Comp Required" Actually Means

Workers' compensation insurance covers medical bills and lost wages if your housekeeper is injured while working at your home. A slip on wet tile, a strained back from moving furniture, a chemical reaction from cleaning products—these things happen.

States handle this three ways:

Required after a household-specific gate (CA, NY, MA, OH, WA, and others). The gate can depend on wages, hours, or worker count. New Jersey generally requires coverage for non-family domestic workers, while Pennsylvania lets a one-worker household elect coverage. Check the exact state rule before relying on a yes/no label.

Not required but recommended (TX, FL, GA, NC). You won't be fined for lacking coverage, but you're personally liable if your cleaner is injured. Illinois becomes mandatory at 40+ hours/week for at least 13 weeks in a year.

Varies by hours or employees. Some states only require workers' comp when you have a certain number of employees or your worker exceeds a minimum number of hours per week.

Even in states where it's not mandatory, carrying workers' comp is smart. A single injury claim without insurance can cost tens of thousands of dollars. The $200–500/year premium is cheap peace of mind.

How to Calculate Your Total Employer Cost

A formula that works for any state. Plug in your numbers:

Step 1: Federal taxes (same everywhere)

• Social Security: Wages x 6.2%
• Medicare: Wages x 1.45%
• FUTA: First $7,000 x 0.6% = max $42

Step 2: State unemployment (SUTA)

• Look up your state's new employer rate and wage base from the table above
• SUTA = Wage base x Rate (only on the first dollars up to the wage base)

Step 3: State income tax withholding

• Only in states that have income tax
• Amount depends on the employee's W-4/state equivalent
• This is withheld from the employee's pay, not your cost—but you manage the withholding

Step 4: Additional state programs

• Disability insurance (CA, NY, NJ, HI, RI, PR)
• Paid family leave (CA, NY, NJ, MA, WA, CT, OR, CO, MD, DE, MN)
• Check your state's page for details

Step 5: Optional costs

• Workers' comp insurance: $200–500/year
• Payroll service: $100–1,100/year

Example: $5,200/year housekeeper in different states

The difference between the cheapest and most expensive state for a $5,200 wage is modest in base employer taxes—less than $1/week.

Workers' comp and state-specific programs add more, but the base taxes are remarkably similar across states. The real variation comes from wage base differences and additional programs.

State Registration: What You Actually Need to Do

Every state requires you to register as an employer before paying SUTA. The process generally looks like this:

1. Apply for a state employer ID — Usually done online through your state's unemployment/labor agency. Takes 10–20 minutes.
2. Receive your SUTA rate — The state assigns your initial rate (the "new employer" rate in our table). It typically arrives by mail within 2–4 weeks.
3. File quarterly returns — Each quarter, report wages paid and submit your SUTA payment. Most states accept electronic filing.
4. Annual reconciliation — Some states require an annual wage report in addition to quarterly filings.

States with income tax will also require you to register for state withholding and remit withheld taxes—usually on the same quarterly schedule.

Your state page has the specific registration links and forms. Find your state →

When Do Housekeeper Wages Cross the State Threshold?

Some states have their own thresholds for household employer registration, separate from the federal $3,000. In most cases, the federal threshold is the one that matters first. But a few states have lower thresholds or different rules:

• New York: $500/quarter in cash wages triggers SUI requirements
• California: $750/quarter triggers SDI withholding and wage reporting; $1,000/quarter triggers UI and ETT
• Washington: Any wages to a domestic worker in a quarter require reporting

In practice, if you've crossed the federal $3,000 threshold, you've almost certainly triggered your state's requirements too. If you're right at the edge—paying a cleaner $200–250/month—check your specific state's rules.

Hiring a Cleaner Across State Lines

This comes up more than you'd think: you live in one state but your cleaner lives in another. Which state's rules apply?

The general rule: taxes are based on where the work is performed. If your housekeeper cleans your house in New Jersey, New Jersey rules apply—even if they drive home to Pennsylvania every night.

This means:

• SUTA is paid in the state where your home is
• State income tax withholding follows the work state (your home state)
• Workers' comp follows the work state

There are some reciprocity agreements between border states (like NJ and PA) that affect income tax withholding—your cleaner might owe taxes in their home state instead of yours. But SUTA and workers' comp always follow the work state.

If you're in this situation, a payroll service that handles multi-state rules is worth the investment. NannyKeeper handles this automatically. Learn more →

FAQ

Which state is cheapest for housekeeper taxes?

States with no income tax and low SUTA rates—like Florida and Texas—have the lowest total employer costs. Florida's total employer cost on a $5,200 housekeeper wage is roughly $568/year (about 11% of wages including FUTA). But even in the most expensive states, the difference is less than $2/week.

Do I need to register in my state even if my cleaner is part-time?

It depends on the state's own unemployment and household-employer rules. The federal $3,000 per-worker threshold is for Social Security and Medicare; it does not determine state unemployment registration. Some states trigger much sooner—for example, California starts SDI/reporting at $750 in a quarter and UI/ETT at $1,000 in a quarter.

What if my state isn't listed in this guide?

The 12 states above cover the majority of household employers, but every state has its own SUTA rates and rules. Find your specific state requirements at our state guide hub. The federal portion of your taxes (Social Security, Medicare, FUTA) is identical regardless of state—the only variable is your state's SUTA rate, wage base, income tax, and any additional programs.

My state requires workers' comp. What's the easiest way to get it?

Call your homeowner's or renter's insurance company and ask about adding a "domestic worker" or "household employee" rider. This is typically $200–400/year and takes effect immediately. If your insurer doesn't offer this rider, you can purchase a stand-alone workers' comp policy through your state's insurance marketplace or a commercial insurer.