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Paid Family Leave for Nannies: 2026 Guide

NannyKeeper Team
March 25, 2026
10 min read

If you employ a nanny in the wrong state without knowing about paid family leave, you could owe back contributions plus penalties. Thirteen states and DC now have active paid family leave programs — and most of them apply to household employers.

The good news: in almost every state, the cost comes out of your nanny's paycheck, not yours. You just need to know to withhold it.

Verified accurate as of March 2026Sources: IRS Publication 926, Fair Labor Standards Act

Which States Require Paid Family Leave?

Fourteen jurisdictions currently have active paid family leave programs. This table covers every one that affects household employers, sorted by launch date.

StateActive SinceCovers Nanny Employers?Who Pays2026 Rate
California2004YesEmployee1.3% of wages
New Jersey2009YesEmployee0.23% FLI
Rhode Island2014YesEmployee1.1% of wages
New York2018Yes (20+ hrs/wk)Employee0.432% of wages
DC2020YesEmployer0.75% of wages
Washington2020YesBoth1.13% of wages
Massachusetts2021YesEmployee (for HH)0.46% of wages
Connecticut2022YesEmployee0.5% of wages
Oregon2023YesEmployee (for HH)0.6% employee share
Colorado2024Yes (explicitly)Employee (for HH)0.44% employee share
Delaware2026Voluntary (<10 employees)Split0.8% of wages
Minnesota2026YesBoth0.66% (small employer)
Maine2026YesEmployee (for HH)0.5% of wages

Coming soon: Maryland begins collecting contributions January 2027, with benefits starting January 2028.

If your state isn't on this list, you don't have any paid family leave requirements as a household employer.

How Paid Family Leave Works for Household Employers

Paid family leave lets employees take paid time off for qualifying reasons — typically the birth of a child, caring for a seriously ill family member, or certain military-related situations. It's a state-run insurance program, not something you fund out of pocket.

This is not FMLA. The federal Family and Medical Leave Act only applies to employers with 50+ employees. It will never apply to you as a household employer. State PFL programs have their own rules, and most of them cover employers of any size.

Your main job as the employer: withhold the correct percentage from your nanny's paycheck and remit it to the state. In most states, that's all you need to do. The state handles claims and benefit payments directly to your nanny when they need leave.

States Where You Just Withhold (Employee-Funded)

In most PFL states, the contribution is 100% employee-funded. You deduct the percentage from each paycheck and send it to the state — similar to how you withhold Social Security and Medicare taxes.

California

California's State Disability Insurance (SDI) program includes paid family leave. The 2026 rate is 1.3% of all wages with no cap. Your nanny pays the full amount through payroll deductions.

Benefits: 60-70% of wages for up to 8 weeks. Maximum weekly benefit: $1,765.

New Jersey

New Jersey has separate programs for temporary disability (TDI) and family leave insurance (FLI). The 2026 FLI rate is 0.23% of wages up to $171,100. Employee-funded.

Benefits: up to 12 weeks at 85% of wages.

Rhode Island

Rhode Island's Temporary Caregiver Insurance is employee-funded at 1.1% of the first $100,000 in wages.

Benefits: up to 6 weeks (increasing in 2026).

New York

New York PFL applies if your nanny works 20+ hours per week. The 2026 rate is 0.432% of gross wages, capped at $411.91/year per employee. Employee-funded.

Benefits: 12 weeks at 67% of average weekly wage, up to $1,228.53/week.

Connecticut

Connecticut charges 0.5% of wages up to $184,500. Employee-funded, maximum contribution $922.50/year.

Benefits: 12 weeks at up to 95% of wages on a sliding scale.

Maine (New for 2026)

Maine's program started paying benefits May 1, 2026. For household employers (fewer than 15 employees), the full 0.5% rate can be deducted from the employee's wages.

Benefits: up to 12 weeks. Your nanny must have worked 120+ consecutive days for job protection.

States With Shared Costs

A few states split the contribution between employer and employee. For household employers (typically fewer than 10-25 employees), the rules often reduce or eliminate the employer's share.

Washington

Washington charges 1.13% of wages up to $184,500, normally split 28.57% employer / 71.43% employee. But employers with fewer than 50 employees — which includes every household employer — are exempt from the employer portion. You only withhold the employee's 71.43% share (about 0.81% of wages).

Benefits: up to 12 weeks family leave + 12 weeks medical leave (16 weeks combined maximum).

Massachusetts

Massachusetts charges 0.46% of eligible wages (0.18% family + 0.28% medical). Employers with fewer than 25 employees pay no employer contribution — the full amount comes from the employee's paycheck.

Benefits: 12-26 weeks depending on reason, up to $1,230.39/week.

Oregon

Oregon charges 1.0% of wages up to $184,500, normally split 60% employee / 40% employer. Employers with fewer than 25 employees are exempt from the employer portion. You withhold the employee's 0.6% share only.

Benefits: 12 weeks at up to 100% of wages on a sliding scale.

Colorado

Colorado explicitly covers nannies and domestic workers — they published a dedicated guide about it. The 2026 rate is 0.88% of wages up to $184,500, normally split 50/50. Employers with fewer than 10 employees (which includes you) are exempt from the employer share. You withhold 0.44% from your nanny's wages.

Benefits: 12 weeks, plus additional weeks for NICU situations starting in 2026.

Minnesota (New for 2026)

Minnesota launched its program January 1, 2026, with no small-employer exemption for household employers. The small employer rate (fewer than 30 employees) is 0.66% of wages up to $185,000, split 50/50. That means you pay 0.33% and withhold 0.33% from your nanny.

First premium payment is due April 30, 2026. Benefits: 12 weeks family + 12 weeks medical (20 weeks combined maximum).

The One State Where You Pay Everything

District of Columbia

DC is the outlier. The rate is 0.75% of wages, and the employer pays the entire amount. You cannot deduct any portion from your nanny's paycheck.

If your nanny earns $40,000/year, that's $300/year out of your pocket. Not huge, but worth knowing about.

Benefits: up to 12 weeks family leave, 12 weeks medical leave, and 2 weeks prenatal leave.

States Launching Soon

Delaware (2026 — Voluntary for Household Employers)

Delaware's program started paying benefits January 1, 2026. But the law only requires participation from employers with 10+ employees (parental leave) or 25+ employees (full program). Most household employers fall below both thresholds and can voluntarily opt in but aren't required to participate.

Maryland (Contributions Start 2027)

Maryland's FAMLI program begins collecting contributions January 1, 2027, with benefits starting January 2028. The estimated rate is about 0.9% of wages, split 50/50. Employers with fewer than 15 employees can withhold the full amount from the employee's wages.

Maryland's law appears to cover employers with even one employee, which would include household employers.

What This Costs in Real Numbers

For a nanny earning $40,000/year, the annual PFL cost breaks down like this:

StateEmployee Pays/YearYou Pay/YearTotal
California$520$0$520
New Jersey$92 (FLI only)$0$92
Rhode Island$440$0$440
New York$173$0$173
DC$0$300$300
Washington$324$0 (exempt)$324
Massachusetts$184$0 (exempt)$184
Connecticut$200$0$200
Oregon$240$0 (exempt)$240
Colorado$176$0 (exempt)$176
Minnesota$132$132$264
Maine$200$0$200

DC and Minnesota are the only states where household employers have a direct cost. Everywhere else, you're just withholding from your nanny's existing wages.

Use our nanny tax calculator to see your full tax picture — including PFL withholding — for your specific state.

You Don't Have to Track This Yourself

If you use NannyKeeper, PFL withholding is built into payroll for every state on this list. You pick your state, run payroll, and the deduction is already there. We also email you before each quarterly deadline.

Ready to simplify nanny taxes?

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FAQ

Does paid family leave apply to household employers?

Yes, in most states that have PFL programs. Thirteen states and DC currently have active programs, and nearly all of them cover household employers with even one employee. Delaware is the main exception, where participation is voluntary for employers with fewer than 10 employees.

Do I pay for my nanny's paid family leave?

In most states, no. The contribution is employee-funded — you withhold the percentage from your nanny's paycheck and remit it to the state. DC is the notable exception where the employer pays the full 0.75%. Minnesota requires a 50/50 split with no small-employer exemption.

Is paid family leave the same as FMLA?

No. FMLA is a federal law that only applies to employers with 50+ employees — it will never apply to household employers. State paid family leave programs are separate, state-run insurance programs with their own eligibility rules and contribution rates. They provide paid benefits; FMLA only guarantees unpaid leave.

What happens if I don't withhold PFL from my nanny's pay?

You could owe the back contributions plus penalties and interest. In some states, the employer becomes liable for the employee's share if it wasn't withheld. The safest approach is to set up your payroll correctly from the start — NannyKeeper handles this automatically for every state.

Which states are adding paid family leave next?

Maryland begins contributions in January 2027 with benefits starting in 2028. Virginia, Hawaii, and Pennsylvania all have proposed legislation but no firm effective dates yet. The number of states with PFL programs has roughly doubled since 2020, and that pace isn't slowing down.

Check your state's specific requirements →

See what you owe with our free calculator →

Read the complete nanny tax guide →

Sources & Verification
Verified

March 2026

Content accuracy confirmed

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax laws vary by jurisdiction and change frequently. Consult a qualified tax professional for advice specific to your situation.

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