You hired a nanny. Now you need to figure out how much extra you owe in taxes on top of their pay. The short answer: about 8–10% of their wages, depending on your state.
Here's exactly where that money goes and how much you'll pay.
The Complete Tax Breakdown
As a household employer, you owe taxes at two levels: federal and state. Here's every line item.
Federal taxes (same for all states)
| Tax | Rate | Applied To | 2026 Cap |
|---|---|---|---|
| Social Security (employer share) | 6.2% | Wages | $184,500 |
| Medicare (employer share) | 1.45% | All wages | No cap |
| FUTA (federal unemployment) | 0.6% | First $7,000 | $42/year max |
You also withhold from your nanny's pay:
| Tax | Rate | Applied To |
|---|---|---|
| Social Security (employee share) | 6.2% | Wages up to $184,500 |
| Medicare (employee share) | 1.45% | All wages |
| Federal income tax | Varies | Based on W-4 (optional to withhold) |
The employer and employee shares of Social Security and Medicare are identical—6.2% + 1.45% each. Together, they're called FICA and total 15.3% split evenly between you.
State taxes (varies)
| Tax | Typical Rate | Notes |
|---|---|---|
| SUTA (state unemployment) | 1–3.5% | On first $7,000–$56,500 depending on state |
| State income tax | Varies | Withheld from employee's pay (if applicable) |
| Disability insurance | ~1% | CA, NJ, NY, RI, HI (employee-paid in most states) |
| Paid family leave | ~0.5% | CA, NJ, NY, RI, WA, MA, CT, OR, CO, MD |
Not every state has all of these. Check your state's specific requirements →
Worked Example: $600/Week Nanny in California
Let's walk through a real scenario. You pay your nanny $600/week ($31,200/year) in California.
Your employer taxes
| Tax | Calculation | Annual Cost |
|---|---|---|
| Social Security | $31,200 × 6.2% | $1,934.40 |
| Medicare | $31,200 × 1.45% | $452.40 |
| FUTA | $7,000 × 0.6% | $42.00 |
| CA SUTA | $7,000 × 3.4% | $238.00 |
| Total employer taxes | $2,666.80 |
That's 8.5% of wages — or about $51.28/week on top of the $600 paycheck.
What you withhold from your nanny's pay
| Tax | Calculation | Per Paycheck (weekly) |
|---|---|---|
| Social Security | $600 × 6.2% | $37.20 |
| Medicare | $600 × 1.45% | $8.70 |
| Federal income tax | Varies (W-4) | ~$30–$60 |
| CA state income tax | ~2% effective | ~$12 |
| CA SDI | $600 × 1.1% | $6.60 |
Your nanny's take-home: roughly $475–$505/week after withholdings (depending on their W-4 elections).
Your total cost: $600/week wages + $51.28/week employer taxes = $651.28/week ($33,866/year).
Want to see the numbers for your situation? Use our free calculator →
How Each Tax Works
Social Security (6.2% + 6.2%)
Social Security tax funds retirement and disability benefits. Both you and your nanny pay 6.2% — you pay 6.2% as the employer, and you withhold 6.2% from your nanny's paycheck.
The cap: Social Security only applies to the first $184,500 of wages in 2026. For most nanny salaries, the cap doesn't matter — your nanny would need to earn over $184,500 before it kicks in.
Medicare (1.45% + 1.45%)
Medicare tax funds healthcare for people 65 and older. Like Social Security, both you and your nanny pay 1.45%.
No cap: Unlike Social Security, Medicare applies to all wages with no upper limit.
Additional Medicare Tax: If your nanny earns over $200,000 (rare for household employees), an additional 0.9% Medicare tax applies to wages above that threshold. This is employee-only — you don't pay the extra 0.9%.
FUTA (0.6% on first $7,000)
Federal Unemployment Tax (FUTA) funds the federal unemployment system. The "official" rate is 6.0%, but you get a 5.4% credit if your state has an approved unemployment program (all states do), making the effective rate 0.6%.
Small cost: At 0.6% on just the first $7,000, FUTA costs a maximum of $42 per employee per year. It's the smallest line item.
Threshold: You owe FUTA if you pay $1,000 or more in any calendar quarter to household employees.
SUTA (varies by state)
State Unemployment Tax is your biggest variable. New employer rates typically range from 1% to 3.5%, and the taxable wage base varies wildly by state:
| State | New Employer Rate | Wage Base |
|---|---|---|
| California | 3.4% | $7,000 |
| New York | 4.025% | $12,500 |
| Texas | 2.7% | $9,000 |
| Florida | 2.7% | $7,000 |
| Massachusetts | 1.87% | $15,000 |
| Washington | 1.29% | $67,600 |
| New Jersey | 2.6825% | $42,300 |
Washington State is notable — with a $67,600 wage base, SUTA there can cost significantly more than in states with a $7,000 base.
Annual Cost by Salary Level
Here's what your employer taxes look like at different salary levels (using California rates):
| Annual Salary | Employer Taxes | Effective Rate | Total Cost |
|---|---|---|---|
| $15,000 | ~$1,427 | 9.5% | $16,427 |
| $25,000 | ~$2,194 | 8.8% | $27,194 |
| $31,200 | ~$2,667 | 8.5% | $33,867 |
| $40,000 | ~$3,340 | 8.4% | $43,340 |
| $52,000 | ~$4,258 | 8.2% | $56,258 |
The effective rate decreases slightly as wages increase because FUTA and SUTA are capped at the wage base.
See what you'll owe
Use our free calculator to estimate your nanny tax costs for 2026.
When Do You Start Owing These Taxes?
The $3,000 threshold (2026) triggers your FICA obligation. Once you pay a single household employee $3,000 or more in a calendar year:
- You owe Social Security and Medicare (FICA) on all wages — not just the amount over $3,000
- You owe FUTA if you pay $1,000+ in any quarter
- You owe SUTA according to your state's rules
Don't wait until December to figure this out. If your nanny earns $60/week, you'll cross the threshold in about 50 weeks. Track it from day one.
For a deeper explanation of the threshold rules, read our complete nanny tax guide.
How to Pay These Taxes
- Quarterly estimated payments — Submit payments to the IRS (and your state) four times per year
- Schedule H — File annually with your Form 1040 (due April 15)
- W-2 — Provide to your nanny by January 31
A payroll service like NannyKeeper calculates every tax, generates all forms, and reminds you before each deadline. Plans start at $10/month.
The Bottom Line
Your total employer cost for a nanny is roughly 8–10% above their gross wages. For a $600/week nanny, that's about $51/week or $2,667/year in employer taxes.
The taxes aren't optional once you cross the $3,000 threshold — but they're manageable. A payroll service automates the math and keeps you compliant for less than what most people spend on streaming subscriptions.
Start tracking payments for free →
FAQ
How much do nanny employer taxes cost in total?
Employer taxes typically total 8–10% of your nanny's gross wages. This includes Social Security (6.2%), Medicare (1.45%), FUTA (0.6% on first $7,000), and state unemployment (varies). For a nanny earning $31,200/year, expect roughly $2,500–$2,700/year in employer taxes.
Do I pay nanny taxes in addition to my nanny's salary?
Yes. Employer taxes (your Social Security, Medicare, FUTA, SUTA shares) come out of your pocket — they're on top of what you pay your nanny. You also withhold your nanny's share of Social Security and Medicare from their paycheck, but that reduces their take-home, not your cost.
What's the difference between employer taxes and employee withholdings?
Employer taxes are your obligation (6.2% SS + 1.45% Medicare + FUTA + SUTA). Employee withholdings are deducted from your nanny's gross pay (6.2% SS + 1.45% Medicare + federal/state income tax). You're responsible for remitting both to the IRS.
Can I deduct nanny employer taxes on my own tax return?
Generally no. Household employer taxes are not deductible as a personal expense. However, if you have a qualifying dependent care arrangement, you may be eligible for the Child and Dependent Care Credit (up to $3,000 for one child, $6,000 for two or more), which can offset some costs.
When do I have to start paying nanny taxes?
Once you pay a single household employee $3,000 or more in a calendar year (2026 threshold). The FUTA obligation kicks in when you pay $1,000 or more in any calendar quarter. Once triggered, taxes apply to all wages for the year.