Nanny Tax Calculator 2026
- Nanny's net pay
- Nanny's FICA (withheld)
- Your FICA
- FUTA
You pay $2,826.60 on top of $36,400.00 in wages, 7.77% more. State unemployment tax and other state taxes are not included.
How the nanny tax calculator 2026 calculation works
The federal taxes you owe as a household employer in 2026 when you pay a nanny, babysitter, housekeeper or other household worker $3,000 or more. State taxes are not included.
Check the $3,000 threshold
If you pay one household employee $3,000 or more in cash wages in 2026, all of those wages are subject to Social Security and Medicare tax, not only the amount over $3,000.
Each side pays 7.65%
You pay 6.2% Social Security and 1.45% Medicare, and you withhold the same 7.65% from the nanny's pay. On $36,400 that is $2,784.60 each.
Add FUTA if you paid $1,000 in a quarter
Federal unemployment tax is 6.0% of the first $7,000, less a credit of up to 5.4% for state unemployment tax paid. Most employers pay 0.6%, or $42 a year.
Report it all on Schedule H
You file Schedule H with your Form 1040, give the nanny a Form W-2 and need an employer identification number (EIN). State taxes are separate.
Worked example. A family pays a nanny $700 a week for 52 weeks, $36,400 in 2026. Social Security is $2,256.80 and Medicare $527.80, so each side's share is $2,784.60. FUTA is 0.6% of $7,000, or $42. The family pays $2,826.60 on top of wages and withholds $2,784.60 from the nanny's pay. The total on Schedule H is $5,611.20.
Nanny Tax Calculator 2026 FAQ
How much is nanny tax?
Once you pay $3,000 or more in 2026, you owe 7.65% of cash wages (6.2% Social Security and 1.45% Medicare) and withhold the same 7.65% from your nanny's pay. Add FUTA of up to $42 a year in most states. On $36,400 in wages, your own cost is $2,826.60.
What is the nanny tax threshold for 2026?
$3,000 in cash wages to any one household employee in 2026 (IRS Publication 926). FUTA has a separate test: $1,000 or more in total cash wages to household employees in any calendar quarter of 2025 or 2026.
What is Schedule H?
The form you attach to your Form 1040 to report and pay household employment taxes: both shares of Social Security and Medicare, any federal income tax you withheld, and FUTA. To avoid an underpayment penalty, you can make estimated tax payments or raise withholding from your own pay.
Can I pay my nanny's share of the tax?
Yes. If you pay the nanny's 7.65% instead of withholding it, that amount counts as extra wages for the nanny's income tax, but not for Social Security, Medicare or FUTA wages.
Do I have to withhold income tax from my nanny's pay?
No. You withhold federal income tax only if the nanny asks you to and you agree. Social Security and Medicare must be withheld once the $3,000 threshold is met.
Who is exempt from nanny tax?
Wages you pay your spouse, your child under 21, or your parent generally don't count, with some exceptions for a parent who cares for your child. Wages to an employee under 18 don't count unless household work is their main job; a student's isn't.
What is a FUTA credit reduction state?
A state that owes the federal unemployment fund. Employers there get a smaller credit and pay more FUTA. For 2025 that was California (1.2%) and the US Virgin Islands (4.5%). The US DOL sets 2026 rates after November 10, 2026.
Does this include state taxes?
No. Your state may also charge state unemployment tax or other payroll taxes, or have its own withholding rules. Check your state's labor or tax agency.
Sources: IRS: Publication 926 (2026), Household Employer's Tax Guide · IRS: Instructions for Schedule H (Form 1040) · US DOL: FUTA credit reductions