Calculate Your Nanny's Total Cost

Typical is 48 (allowing 4 weeks PTO)
$0/year
Nanny payroll taxes include: Social Security (6.2% employer share), Medicare (1.45% employer share), FUTA (0.6% on first $7,000 of wages), and state unemployment insurance (SUTA, varies by state, typically 1-3% on the first wage base). You may also need workers' compensation insurance. These are estimates and actual rates may differ.

Understanding the True Cost of a Nanny

Hiring a nanny involves more than just the hourly wage. As a household employer, you are legally responsible for paying employer taxes including Social Security (6.2%), Medicare (1.45%), federal unemployment tax (FUTA at 0.6% on the first $7,000 of wages), and state unemployment insurance. These taxes typically add 8-10% to your nanny’s gross wages.

If you pay your nanny $2,800 or more per calendar year (2026 threshold), you must withhold and pay Social Security and Medicare taxes, file Schedule H with your tax return, and provide a W-2 at year-end. Many families use payroll services like NannyKeeper or Poppin Pay to stay compliant. Some states also require workers’ compensation insurance for household employees.

For a comparison with other care options, use our Nanny vs Daycare Calculator or Nanny Share Calculator to explore cost-saving alternatives like sharing a nanny with another family.