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AZ

Arizona Nanny Tax Calculator

Estimate your total employer costs for hiring a nanny in Arizona. Enter your nanny's pay below for a personalized tax breakdown.

Arizona employer tax rates at a glance

Social Security

6.2%

employer share

Medicare

1.45%

employer share

FUTA

0.6%

on first $7,000

AZ SUTA

0.08% - 20.3%

new employer rate range

Key facts for Arizona household employers

  • Minimum wage: $14.70/hour (compare nationwide)
  • No state income tax — simpler payroll
  • No state income tax withholding for domestic workers
  • State minimum wage is $14.70/hour

Arizona nanny tax FAQ

How does the calculator estimate Arizona nanny taxes?

The calculator estimates the full employer cost for a household employee in Arizona: federal FICA (15.3% combined, split between you and your employee), federal FUTA (0.6% effective on the first $7,000), and Arizona SUTA (0.08% - 20.3%). Arizona has no state income tax, disability, or PFL programs that affect household payroll, which keeps the calculation simpler than in many other states. Numbers update for tax year 2026 and reflect the 2026 FICA threshold of $3,000.

Does Arizona require state income tax withholding from a nanny's paycheck?

Arizona either has no state income tax or exempts domestic-service wages from withholding. You do not withhold state income tax from your nanny's paycheck.

What's the minimum hourly rate I can pay a nanny in Arizona?

Arizona's minimum wage is $14.70/hour, above the federal $7.25 floor. Household employees must be paid at least this rate. FLSA overtime (1.5x for hours over 40 in a week) applies to most household employees. Live-in nannies are FLSA-exempt from overtime but not from minimum wage.

Does Arizona add disability or paid family leave premiums?

No. Arizona does not require state disability insurance or paid family leave for household employees. Your obligations are the federal baseline (FICA, FUTA, Schedule H) plus Arizona state unemployment insurance.

Why does my Arizona nanny's net pay differ from the calculator total?

In Arizona, 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.

Verified accurate as of April 2026Sources: Arizona tax agency, IRS Publication 926

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