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Nanny Tax Calculator (2026)

Estimate federal household employment taxes from cash wages and pay frequency. This browser-only estimate uses the 2026 figures shown below.

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Cash wages per pay periodPay frequencyExpected pay periods this yearChanging pay frequency resets this to its expected number; you can edit it.

I'll pay my employee's share myself instead of withholding it Employee is my spouse, my child under 21, my parent, or under 18 (see exceptions)

Per pay period

Cash wages: $500.00
Employee Social Security: $31.00
Employee Medicare: $7.25
Employee share withheld: $38.25
Your employer Social Security: $31.00
Your employer Medicare: $7.25
Your employer share: $38.25
FUTA: $0.81
Employee take-home before income tax: $461.75
Your total cost: $539.06

Per year

Cash wages: $26,000.00
Employee Social Security: $1,612.00
Employee Medicare: $377.00
Employee share withheld: $1,989.00
Your employer Social Security: $1,612.00
Your employer Medicare: $377.00
Your employer share: $1,989.00
FUTA: $42.00
Employee take-home before income tax: $24,011.00
Your total cost: $28,031.00

The full rate is 6.0%. Most employers get a credit of up to 5.4% for paying state unemployment tax on time, for a net 0.6%. The credit is lower in 'credit reduction' states. FUTA is never withheld from your employee; you pay it yourself.

FUTA uses wages per period × 13 weekly, 6.5 biweekly, 6 semi-monthly or 3 monthly periods to estimate a calendar quarter. Check total cash wages paid to all household employees in any quarter of 2025 or 2026.

Employee Medicare includes 0.9% Additional Medicare Tax on yearly wages over $200,000; employer Medicare is 1.45% of all wages.

Per-pay-period tax amounts are annual estimates divided by your expected pay periods.

How the nanny tax works in 2026

If you pay one household employee $3,000 or more in cash wages in 2026, Social Security and Medicare taxes apply to all of their cash wages. Each of you owes 7.65%: 6.2% for Social Security and 1.45% for Medicare. You can withhold the employee's share from their pay, or pay it yourself. Social Security stops once wages reach $184,500 for the year; Medicare has no limit. Separately, if you pay $1,000 or more in total cash wages to household employees in any calendar quarter of 2025 or 2026, you owe federal unemployment (FUTA) tax on the first $7,000 of each employee's wages.

Income tax withholding is optional

You don't have to withhold federal income tax from a household employee. Withhold it only if your employee asks and you agree, using their Form W-4 and the tables in IRS Publication 15-T.

What counts as cash wages

Cash wages include pay by check, cash, money order, Zelle, Venmo or direct deposit. The value of food, lodging and other noncash items doesn't count toward the $3,000 threshold.

Paperwork

If Social Security and Medicare apply, or you withhold income tax, you'll need an EIN, give your employee a Form W-2 by February 1, 2027, and file Schedule H with your 2026 Form 1040 by April 15, 2027. Keep payroll records for at least 4 years.

A pay stub each payday is the easiest way to keep those records.

Sources

IRS Publication 926

FAQ

What is the nanny tax threshold for 2026?

$3,000 in cash wages paid to one household employee in 2026. At or above that, Social Security and Medicare apply to all of that employee's cash wages.

What are the Social Security and Medicare rates for household employees?

6.2% Social Security and 1.45% Medicare, each paid by both you and your employee (7.65% each, 15.3% total). Social Security applies to wages up to $184,500 in 2026.

When do I owe FUTA for a nanny?

When you pay $1,000 or more in total cash wages to household employees in any calendar quarter of 2025 or 2026. It's 6.0% of the first $7,000 of each employee's wages, usually reduced to 0.6% by the state credit. You pay it yourself; it's never withheld.

Do I have to withhold income tax from my nanny's pay?

No. You withhold federal income tax only if your nanny asks and you agree.

Does this calculator include state taxes?

No. It covers federal taxes only. Check your state's rules on our state pages.

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For real wages only. Use StubzPro to record pay you actually paid. Never make a stub to show income that wasn't earned; doing so can be illegal. This page is general information, not legal or tax advice. Figures are for 2026 and can change.