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%
new employer rate range
Key facts for Alabama household employers
- Minimum wage: $7.25/hour (federal) (compare nationwide)
- No state income tax — simpler payroll
- No state income tax withholding for domestic workers
- Uses federal minimum wage
Alabama nanny tax FAQ
How does the calculator estimate Alabama nanny taxes?
The calculator estimates the full employer cost for a household employee in Alabama: federal FICA (15.3% combined, split between you and your employee), federal FUTA (0.6% effective on the first $7,000), and Alabama SUTA (0.65% - 6.8%). It also factors in local income tax (Alabama has significant local layers). Numbers update for tax year 2026 and reflect the 2026 FICA threshold of $3,000.
Does Alabama require state income tax withholding from a nanny's paycheck?
Alabama has a state income tax but specifically exempts domestic-service wages in a private home from withholding (per Ala. Admin. Code 810-3-71-.02). You do not withhold Alabama state income tax from your nanny's paycheck. Your nanny remains responsible for any income tax they owe at year-end.
What's the minimum hourly rate I can pay a nanny in Alabama?
Alabama uses the federal minimum wage of $7.25/hour for household employees. Some local ordinances may set a higher floor — verify your city or county. FLSA overtime (1.5x for hours over 40 in a week) applies to most household employees, with a narrow exception for live-in nannies who are FLSA-exempt from 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, Schedule H) plus Alabama state unemployment insurance.
Why does my Alabama nanny's net pay differ from the calculator total?
In Alabama, the gross-to-net difference comes from federal FICA (6.2% Social Security + 1.45% Medicare = 7.65% withheld from the employee), any federal income tax your nanny chose to have withheld. Your share — the employer FICA match and FUTA + SUTA — sits on top of the gross, not subtracted from it. The calculator separates "employer cost" (your total outlay) from "employee net pay" (what lands in their bank account).
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.
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