Alabama Nanny Tax Calculator
Estimate your total employer costs for hiring a nanny in Alabama. Enter your nanny's pay below for a personalized tax breakdown.
Alabama employer tax rates at a glance
Social Security
6.2%
employer share
Medicare
1.45%
employer share
FUTA
0.6%
on first $7,000
AL SUTA
0.65% - 6.8%
2026 range across employers
Key facts for Alabama household employers
- Minimum wage: $7.25/hour (compare nationwide)
- No state income tax withheld from your nanny's pay (they file it themselves)
- No state disability insurance requirement
- Employer SUI still required on the first $8,000 in wages
Alabama nanny tax FAQ
How does the calculator estimate Alabama nanny taxes?
It adds up everything you owe as the employer in Alabama, on top of your nanny's wages.
- Federal FICA: 15.3% combined, split between you and your nanny
- Federal FUTA: 0.6% effective on the first $7,000
- Alabama SUTA: 0.65% - 6.8%
- Local income tax (Alabama has significant local layers)
Figures are 2026 rates and use the 2026 FICA threshold of $3,000.
Does Alabama require state income tax withholding from a nanny's paycheck?
No. You are not required to withhold Alabama income tax from your nanny's pay, and NannyKeeper does not.
- Alabama treats domestic service in a private home as exempt from withholding
- Alabama does tax income, so your nanny reports these wages and pays what they owe on their own Alabama return
Alabama Withholding Tax Tables and Instructions, rev. Jan. 2026, p.2
What's the minimum hourly rate I can pay a nanny in Alabama?
At least $7.25 an hour for a nanny in Alabama.
- Alabama sets no rate above the federal floor, so the federal minimum is what binds
- Some cities and counties may set a higher floor, so check your locality before you set a rate
- Overtime is 1.5x pay for hours over 40 in a week, under the FLSA
- Live-in nannies are exempt from FLSA overtime, but not from minimum wage
Does Alabama add disability or paid family leave premiums?
No. Alabama does not require state disability insurance or paid family leave for household employees.
- Your obligations are the federal baseline: FICA, FUTA and Schedule H
- Alabama state unemployment insurance still applies on the employer side
Why does my Alabama nanny's net pay differ from the calculator total?
Because they answer different questions. The calculator's employer total is what leaves your account; net pay is what lands in your Alabama nanny's.
- Federal FICA: 6.2% Social Security plus 1.45% Medicare, so 7.65% off the top
- Any federal income tax your nanny chose to have withheld
Your own share, the employer FICA match plus FUTA and SUTA, sits on top of gross pay rather than coming out of it.
This calculator provides estimates for informational purposes only. Actual tax obligations may vary. Always verify current rates with your state's tax agency or consult a qualified tax professional.
Learn more
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