About the Nanny Tax Calculator
This nanny tax calculator estimates the federal payroll taxes you owe as a household employer in 2026 — for a nanny, babysitter, housekeeper, home health aide or other worker you control in your home. Once you pay one household employee $3,000 or more in cash wages in 2026, you must withhold and pay Social Security and Medicare (7.65% from the worker plus a matching 7.65% from you). If you pay household employees $1,000 or more in any calendar quarter, you also owe federal unemployment (FUTA) tax.
Enter the weekly gross pay and the number of weeks worked. The calculator applies the 2026 Social Security wage base of $184,500, FUTA at the net 0.6% rate on the first $7,000 of wages (assuming you pay state unemployment on time and your state is not a credit-reduction state) and any state unemployment rate you enter. It also handles the exemptions in IRS Publication 926 for your spouse, your child under 21, your parent and workers under 18 for whom childcare is not their principal occupation.
Household employers report these taxes once a year on Schedule H with their Form 1040, and many raise their own withholding or estimated payments to cover them. Federal income tax withholding is optional for household employees and is not included; state payroll requirements vary.
With the default inputs, the your yearly employer taxes is $3,224.40. Change any value above to recalculate instantly.
How to use the nanny tax calculator
- 1Enter the worker’s weekly gross pay and the weeks worked this year.
- 2Pick who the worker is, to apply family-member and under-18 exemptions.
- 3Choose whether you withhold the employee’s 7.65% or pay it for them.
- 4Add your state unemployment rate and wage base if you know them.
- 5Read your employer taxes, the Schedule H total and your full cost of employment.
Formula and method
W is annual cash wages (weekly pay × weeks). If W is $3,000 or more in 2026 and the worker is not exempt, Social Security (6.2%) and Medicare (1.45%) apply to both employer and employee; the employee also owes 0.9% Additional Medicare above $200,000. FUTA is 6.0% of the first $7,000 of wages, reduced to a net 0.6% by the credit for state unemployment tax, and applies when you pay $1,000 or more of household wages in any calendar quarter (estimated here as 13 weeks of pay).
Schedule H collects both halves of Social Security and Medicare plus FUTA; state unemployment tax is paid to your state. Exemptions follow IRS Publication 926: wages to your spouse, child under 21 or parent are excluded from FICA and FUTA, and wages to a worker under 18 whose principal occupation is not household work are excluded from FICA only.
- W
- Annual cash wages paid to the worker
- SUI
- State unemployment insurance: your rate × wages up to the state base
Worked examples
Full-time nanny at $800 a week
Annual wages are $800 × 52 = $41,600. Social Security is 6.2% ($2,579.20) and Medicare 1.45% ($603.20) for each side, so you withhold $3,182.40 and match it. FUTA is 0.6% of $7,000 = $42, making your employer taxes $3,224.40 and the Schedule H total $6,406.80.
Summer babysitter, 10 weeks at $400
At $4,000 for the year the sitter passes the $3,000 threshold, so Social Security and Medicare apply: $306 withheld and $306 from you. The summer quarter’s pay tops $1,000, so FUTA of 0.6% × $4,000 = $24 is also due.
16-year-old student sitter, $300 a week for 20 weeks
Wages to a worker under 18 who is a student are exempt from Social Security and Medicare, but FUTA still applies: 0.6% × $6,000 = $36. With a 2.7% state unemployment rate on the first $7,000, state tax is $162, so you owe $198 in total.
Frequently asked questions
What is the nanny tax threshold for 2026?+
If you pay a household employee $3,000 or more in cash wages in 2026, you must withhold and pay Social Security and Medicare taxes. Separately, FUTA applies if you pay household employees $1,000 or more in any calendar quarter.
How much is the nanny tax?+
You pay 7.65% of wages (6.2% Social Security plus 1.45% Medicare) and withhold another 7.65% from the worker. FUTA usually adds 0.6% on the first $7,000 ($42), plus any state unemployment tax.
How do I pay nanny taxes?+
You report household employment taxes on Schedule H with your Form 1040 and pay them with your return. To avoid an underpayment penalty, increase your own W-4 withholding or make quarterly estimated payments during the year. You also need an employer identification number (EIN).
Is a babysitter a household employee?+
A sitter who works in your home under your direction is usually your household employee. A sitter who runs her own childcare business, or who is provided by an agency that controls the work, generally is not.
Do I have to withhold income tax for my nanny?+
No. Federal income tax withholding is optional for household employees and only done if both of you agree. Social Security and Medicare withholding is required once the $3,000 threshold is met.
Can I pay my nanny’s share of Social Security and Medicare?+
Yes. Some families pay the employee’s 7.65% instead of withholding it. That amount is not counted as wages for Social Security and Medicare, but it is taxable wages for income tax and goes in box 1 of the W-2.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.