Question 1

Which states have no income tax for nanny employers?

Accepted Answer

Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But "no income tax" doesn't mean no taxes — you still owe Social Security (6.2%), Medicare (1.45%), federal unemployment (FUTA), and state unemployment insurance (SUTA) in every state.

Question 2

What's the highest minimum wage I need to pay my nanny?

Accepted Answer

Washington, DC leads at $17.50/hour. Among states, Washington is highest at $16.66/hour, followed by California ($16.50), Connecticut ($16.35), and Oregon ($15.95). The federal minimum is $7.25/hour, but you must pay whichever is higher — your state's or the federal rate.

Question 3

Which states require disability insurance for household employees?

Accepted Answer

Five states require State Disability Insurance (SDI) for household employees: California, Hawaii, New Jersey, New York, and Rhode Island. SDI is typically funded through small payroll deductions from the employee's wages, though employer contributions vary by state.

Question 4

Which states have paid family leave that applies to nannies?

Accepted Answer

Fifteen states and DC currently have paid family leave programs: California, Colorado, Connecticut, Delaware, DC, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, and Washington. Requirements, contribution rates, and start dates vary by state.

Question 5

Do I owe nanny taxes if I pay less than $3,000 a year?

Accepted Answer

If you pay a household employee less than $3,000 in 2026, you don't need to withhold or pay Social Security and Medicare taxes. But if you cross that threshold — even by a dollar — taxes apply to every dollar from the first one, not just the amount over $3,000. FUTA kicks in separately if you pay $1,000+ in any quarter.

Question 6

What taxes does every state require for nanny employers?

Accepted Answer

Every state requires federal payroll taxes: Social Security (6.2% employer share), Medicare (1.45% employer share), and FUTA (0.6% on the first $7,000). On top of that, nearly every state requires State Unemployment Tax (SUTA), with rates and wage bases that vary widely. Some states add income tax withholding, disability insurance, or paid family leave.

Nanny Tax Requirements by State

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Common questions about state nanny taxes

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