Free tool
Nanny tax calculator
For families who pay a nanny, caregiver or housekeeper. See what to withhold, what you owe on top of wages, and which forms you need. Tax year 2026.
Pay
Optional
Decides FUTA. Leave blank for steady year-round pay.
Each weekly paycheck
Gross wages$880.00
Withhold Social Security$54.56
Withhold Medicare$12.76
Nanny takes home$812.68
Before any income tax you agree to withhold.
Your cost for the year
Wages$45,760.00
Your Social Security$2,837.12
Your Medicare$663.52
FUTA$42.00
Total cost$49,302.64
Forms
Schedule H with your 1040Required
W-2 for your nannyRequired
$3.99 a stub.
- Federal income tax withholding is optional for household employees: only if the employee asks and you agree.
- Your spouse, your child under 21, your parent (with exceptions), and most employees under 18 are exempt from Social Security and Medicare.
- FUTA assumes the full 5.4% state credit. States with a credit reduction pay more.
- Thresholds: $3,000 a year for Social Security and Medicare, $1,000 a quarter for FUTA. Source: IRS Publication 926 (2026); SSA employment coverage thresholds for 2026.
- Your state may have its own household employer rules and unemployment registration.
Common questions
- How much can I pay a nanny before I owe nanny taxes in 2026?
- Social Security and Medicare apply once you pay one household employee $3,000 or more in cash wages during 2026. Federal unemployment tax (FUTA) applies separately once you pay $1,000 or more in total household wages in any calendar quarter of 2025 or 2026.
- Do I have to withhold federal income tax from my nanny?
- No. Income tax withholding is optional for household employees. You withhold it only if your employee asks and you agree, usually by having them fill out a Form W-4.
- Can I pay my nanny's share of Social Security and Medicare?
- Yes. Many families do. The amount you cover counts as extra wages for income tax, so it goes in box 1 of the W-2, but it does not count as Social Security, Medicare or FUTA wages.
- When do I file Schedule H?
- With your own Form 1040, by April 15, 2027 for 2026 wages, if you paid Social Security and Medicare wages, met the FUTA test, or withheld federal income tax.