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: $15.15/hour (compare nationwide)
- No state income tax withheld from your nanny's pay (they file it themselves)
- No state income tax withholding for domestic workers
- State minimum wage is $15.15/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 doesn't allow state income tax to be withheld from a household employee's pay, and has no disability or PFL programs affecting household payroll, so none of those add to your employer cost. Your employee still reports the wages on their own Arizona return. 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 has a state income tax but specifically exempts wages for domestic service in a private home from withholding (ARS § 43-403(A)(2)). You do not withhold Arizona state income tax from your nanny's paycheck. Your nanny remains responsible for reporting those wages and paying any income tax they owe on their own Arizona return.
What's the minimum hourly rate I can pay a nanny in Arizona?
Arizona's minimum wage is $15.15/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.
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