Hiring a nanny and wondering what you'll actually owe in taxes? You're not alone. The numbers can feel confusing until you see them laid out clearly.
Here's exactly how nanny taxes work in 2026—and what you can expect to pay.
Want the quick version? See our nanny taxes overview for a summary with rates and calculator link.
The Basic Math
Let's say you pay your nanny $40,000 per year. Here's what you'll owe:
| Tax | Rate | Annual Cost |
|---|---|---|
| Social Security (employer) | 6.2% | $2,480 |
| Medicare (employer) | 1.45% | $580 |
| FUTA (federal unemployment) | 0.6% | $42 |
| SUTA (state unemployment)* | ~2.5% | ~$175 |
| Total Employer Taxes | ~$3,277 |
*State rates vary. This assumes a typical new employer rate on a $7,000 wage base.
Your actual cost as an employer: about 8% of wages.
What Gets Withheld from Your Nanny
In addition to your employer taxes, you'll withhold from your nanny's paycheck:
| Tax | Rate | Annual Amount |
|---|---|---|
| Social Security | 6.2% | $2,480 |
| Medicare | 1.45% | $580 |
| Federal income tax | Varies | Depends on W-4 |
| State income tax | Varies | Depends on state |
The FICA withholding (7.65%) is mandatory. Income tax withholding is optional but usually requested.
Try Our Free Calculator
Don't want to do the math yourself? Use our free nanny tax calculator to see:
- Your employer tax obligation
- Employee withholding amounts
- Quarterly payment estimates
- State-specific requirements
Just enter your nanny's annual wages and your state—we do the rest.
Real Examples for 2026
Part-Time Nanny: $20,000/year
| Your Employer Costs | Amount |
|---|---|
| Social Security | $1,240 |
| Medicare | $290 |
| FUTA | $42 |
| SUTA (est.) | $175 |
| Total | ~$1,747 |
That's about $146/month in employer taxes.
Full-Time Nanny: $50,000/year
| Your Employer Costs | Amount |
|---|---|
| Social Security | $3,100 |
| Medicare | $725 |
| FUTA | $42 |
| SUTA (est.) | $175 |
| Total | ~$4,042 |
That's about $337/month in employer taxes.
Two Nannies: $70,000/year combined
| Your Employer Costs | Amount |
|---|---|
| Social Security | $4,340 |
| Medicare | $1,015 |
| FUTA | $84 (x2 employees) |
| SUTA (est.) | $350 (x2 employees) |
| Total | ~$5,789 |
Don't Forget State Taxes
The federal math is the same everywhere, but state taxes vary significantly:
High-tax states:
- California: SDI (1.1%) + SDI + PFL contributions
- New York: SDI + paid family leave
- New Jersey: Multiple employee contributions
Lower-tax states:
- Texas: No state income tax
- Florida: No state income tax
- Washington: No state income tax (but has paid family leave)
Find your state's specific requirements →
When Do You Pay?
Nanny taxes are paid quarterly:
| Quarter | Deadline | What's Due |
|---|---|---|
| Q1 (Jan-Mar) | April 15 | FICA + FUTA + SUTA |
| Q2 (Apr-Jun) | June 15 | FICA + FUTA + SUTA |
| Q3 (Jul-Sep) | September 15 | FICA + FUTA + SUTA |
| Q4 (Oct-Dec) | January 15 | FICA + FUTA + SUTA |
Most families pay through estimated tax payments (Form 1040-ES) or by increasing withholding at their day job.
The Bottom Line
For most families, nanny taxes add about 8-10% to your nanny's wages. It's a real cost, but it's also:
- Tax-deductible (you can claim the Dependent Care FSA or Child Care Credit)
- Building your nanny's Social Security benefits
- Protecting you from back taxes and penalties
Let NannyKeeper Do the Math
Calculating nanny taxes every pay period gets old fast. NannyKeeper automates everything:
- Automatic calculations for every paycheck
- Quarterly tax estimates and reminders
- All 50 states supported
- W-2 and Schedule H generation
Ready to simplify nanny taxes?
NannyKeeper handles the calculations, deadlines, and paperwork so you can focus on your family.