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TN

Tennessee Nanny Tax Calculator

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

Tennessee employer tax rates at a glance

Social Security

6.2%

employer share

Medicare

1.45%

employer share

FUTA

0.6%

on first $7,000

TN SUTA

0.1% - 10.0%

new employer rate range

Key facts for Tennessee household employers

  • Minimum wage: $7.25/hour (federal)
  • No state income tax — simpler payroll
  • No state income tax on wages
  • Uses federal minimum wage

Tennessee nanny tax FAQ

How much do nanny taxes cost in Tennessee?

As a household employer in Tennessee, you'll pay approximately 7.65% of wages for Social Security (6.2%) and Medicare (1.45%), plus 0.6% FUTA on the first $7,000, plus Tennessee unemployment insurance at 0.1% - 10.0%. Tennessee has no state income tax, so there's nothing to withhold for state taxes. Use the calculator above for a personalized estimate.

What is the nanny minimum wage in Tennessee?

The minimum wage in Tennessee is $7.25/hour (federal). You must pay at least this amount to your household employee. Many families pay above minimum wage based on experience and responsibilities.

Do I need to pay unemployment tax in Tennessee?

Yes. Tennessee requires employers to pay state unemployment insurance (SUTA). New employer rates typically range from 0.1% - 10.0%. You also owe federal unemployment tax (FUTA) at 0.6% on the first $7,000 in wages per employee.

Is nanny payroll simpler in Tennessee since there's no state income tax?

Somewhat. With no state income tax, you don't need to withhold state taxes from your nanny's pay. You still owe federal taxes (Social Security, Medicare, income tax withholding) and Tennessee unemployment insurance. But overall, the calculations and filings are simpler than in states with income taxes.

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 February 2026Sources: Tennessee tax agency, IRS Publication 926

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