US · 2026
Nanny tax calculator
| Item | For 2026 |
|---|---|
| Cash wages | $41,600.00 |
| Employee social security (6.2%) | $2,579.20 |
| Employee Medicare (1.45%) | $603.20 |
| Employee keeps, before any income tax | $38,417.60 |
| Your social security (6.2%) | $2,579.20 |
| Your Medicare (1.45%) | $603.20 |
| Federal unemployment (FUTA, 0.6%) | $42.00 |
| Your total cost | $44,824.40 |
The official method, step by step
- Social security and Medicare apply once you pay one household employee $3,000 or more in cash wages in 2026; then all of that year's cash wages count. Each of you pays 6.2% social security (on wages up to $184,500) and 1.45% Medicare; the employee also pays 0.9% on wages over $200,000.
- FUTA applies if you pay household employees $1,000 or more in cash in any calendar quarter of 2025 or 2026: 6.0% of the first $7,000 of each employee's cash wages, usually 0.6% after the credit for paying state unemployment tax on time. You pay FUTA yourself; it isn't withheld.
- With steady pay, the calculator takes the highest quarter as 13 weeks of pay.
- Wages you pay your spouse, your child under 21 or your parent don't count for either tax; an employee under 18 doesn't count for social security and Medicare but does for FUTA. Publication 926 lists exceptions, such as a parent who cares for your young child.
What this leaves out
- Federal income tax: withheld only if you and your employee agree
- State unemployment, state income tax and state disability or paid leave
- FUTA credit reductions in a credit reduction state
- Other household employees' wages in the FUTA quarter test (add them up yourself)
- Paying the employee's share yourself counts as extra wages for income tax, not for social security and Medicare
Nanny tax calculator: common questions
What is the nanny tax threshold for 2026?
$3,000 in cash wages to one household employee in 2026 for social security and Medicare, and $1,000 in total cash wages to household employees in any calendar quarter for federal unemployment tax.
How much does a nanny cost in taxes?
At $800 a week for 52 weeks ($41,600), you pay 7.65% in social security and Medicare ($3,182.40) and $42 of FUTA, so $44,824.40 in all; your nanny's 7.65% ($3,182.40) is withheld from their pay.
Do I have to withhold income tax from my nanny?
No. Federal income tax is withheld from a household employee's pay only if you both agree. Social security and Medicare must be withheld once wages reach $3,000, unless you choose to pay the employee's share yourself.
How do I pay nanny taxes?
On Schedule H with your Form 1040, by 15 April 2027 for 2026 wages. You also give the employee a Form W-2 by 1 February 2027 and send Copy A to the Social Security Administration. You can cover the tax by increasing your own withholding or making estimated payments.
Can I make pay stubs for my nanny?
Yes. “Make a weekly pay stub” opens the pay stub generator with one week's pay and, when they're withheld, the employee's social security and Medicare filled in. Add your state and the employee's details.
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