Kentucky Nanny Tax Calculator

How does the calculator estimate Kentucky nanny taxes?

It adds up everything you owe as the employer in Kentucky, 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
• Kentucky SUTA: 0.3% - 9%
• Kentucky state income tax (when withheld)
• Local income tax (Kentucky has significant local layers)

Figures are 2026 rates and use the 2026 FICA threshold of $3,000.

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

Usually not. Kentucky has a state income tax, but withholding it from a household employee is optional unless your nanny asks for it.

• It is usually optional, and your nanny elects it on Kentucky's W-4 equivalent
• If they do elect it, you owe quarterly remittance to the state and an annual reconciliation return that includes the W-2 you issued

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

At least $7.25 an hour for a nanny in Kentucky.

• Kentucky 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

US DOL, State Minimum Wage Laws

Does Kentucky add disability or paid family leave premiums?

No. Kentucky does not require state disability insurance or paid family leave for household employees.

• Your obligations are the federal baseline: FICA, FUTA and Schedule H
• Kentucky state unemployment insurance still applies on the employer side

Why does my Kentucky 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 Kentucky 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
• Kentucky income tax, if your nanny elected it on the state W-4

Your own share, the employer FICA match plus FUTA and SUTA, sits on top of gross pay rather than coming out of it.