How much is the nanny tax?
Type what you pay your nanny or other household employee in 2026. The nanny tax calculator applies the IRS thresholds and shows your taxes, the employee's share and the Schedule H total.
- Your employer taxes
- $2,220.00
Paying a household employee $26,000.00 in 2026 costs you $2,220.00 in employer taxes.
- Federal tax on Schedule H
- $4,020.00
- Social Security, your share
- $1,612.00
- Medicare, your share
- $377.00
- Employee’s share
- $1,989.00
- Federal unemployment tax (FUTA)
- $42.00
- State unemployment tax
- $189.00
- Your total cost
- $28,220.00
- Employee’s pay after these taxes
- $24,011.00
- Social Security and Medicare
- Yes: cash wages of $3,000 or more
Your employer taxes: $2,220.00. Paying a household employee $26,000.00 in 2026 costs you $2,220.00 in employer taxes.
Your employer taxes by cash wages in 2026
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Works out 2026 household employment taxes for a nanny or other household employee: Social Security and Medicare over the $3,000 threshold, federal and state unemployment tax, the Schedule H total and your total cost.
Example with the default inputs (Cash wages in 2026 $26,000.00, Who is the employee? Not a family member, 18 or older, Paid $1,000 or more in any quarter? Yes, I pay the employee’s share No, State unemployment tax rate 2.7%, State unemployment wage base $7,000.00): Paying a household employee $26,000.00 in 2026 costs you $2,220.00 in employer taxes.
Method: If cash wages are $3,000 or more and the employee is not exempt: Social Security 6.2% of wages up to $184,500 and Medicare 1.45% of wages, each from you and from the employee (plus 0.9% from the employee on wages over $200,000). If FUTA applies: FUTA = (6.0% − 5.4% + credit reduction) × wages up to $7,000, and state unemployment = state rate × wages up to the state base. Your taxes = your share + FUTA + state tax (+ the employee’s share if you pay it). Schedule H = both shares + Additional Medicare + FUTA.
- Wages paid in 2026 to one household employee (IRS Publication 926, 2026); all wages are cash wages.
- You pay state unemployment tax on time, so the full 5.4% FUTA credit applies; state unemployment tax is figured only when FUTA applies.
- Federal and state income tax withholding (only if you and the employee agree) is not included.
- An estimate, not tax advice.
Worked examples
Each example is checked against the calculator on every build.
- Cash wages in 2026 $26,000.00, Who is the employee? Not a family member, 18 or older, Paid $1,000 or more in any quarter? Yes, State unemployment tax rate 2.7%, State unemployment wage base $7,000.00 gives Social Security, your share $1,612.00, Medicare, your share $377.00, Employee’s share $1,989.00, Federal unemployment tax (FUTA) $42.00, State unemployment tax $189.00, Your employer taxes $2,220.00, Federal tax on Schedule H $4,020.00, Your total cost $28,220.00, Employee’s pay after these taxes $24,011.00.Source: IRS Publication 926 (2026): Social Security and Medicare on cash wages of $3,000 or more, 6.2% and 1.45% each from employer and employee, wage base $184,500; paying the employee’s share from your own funds, https://www.irs.gov/publications/p926
- Cash wages in 2026 $2,900.00, Who is the employee? Not a family member, 18 or older, Paid $1,000 or more in any quarter? Yes, State unemployment tax rate 2.7%, State unemployment wage base $7,000.00 gives Social Security, your share $0.00, Medicare, your share $0.00, Federal unemployment tax (FUTA) $17.40, State unemployment tax $78.30, Your employer taxes $95.70, Federal tax on Schedule H $17.40, Employee’s pay after these taxes $2,900.00.Source: IRS Publication 926 (2026): Social Security and Medicare on cash wages of $3,000 or more, 6.2% and 1.45% each from employer and employee, wage base $184,500; paying the employee’s share from your own funds, https://www.irs.gov/publications/p926 ($3,000 in 2026; FUTA at $1,000 in a quarter)
- Cash wages in 2026 $30,000.00, Who is the employee? Not a family member, 18 or older, Paid $1,000 or more in any quarter? Yes, I pay the employee’s share yes, State unemployment tax rate 2.7%, State unemployment wage base $7,000.00 gives Social Security, your share $1,860.00, Medicare, your share $435.00, Your employer taxes $4,821.00, Federal tax on Schedule H $4,632.00, Employee’s pay after these taxes $30,000.00.Source: IRS Publication 926 (2026): Social Security and Medicare on cash wages of $3,000 or more, 6.2% and 1.45% each from employer and employee, wage base $184,500; paying the employee’s share from your own funds, https://www.irs.gov/publications/p926 (paying the employee’s share from your own funds)
- Cash wages in 2026 $20,000.00, Who is the employee? My spouse, my child under 21, or my parent, Paid $1,000 or more in any quarter? Yes, State unemployment tax rate 2.7%, State unemployment wage base $7,000.00 gives Your employer taxes $0.00, Federal tax on Schedule H $0.00, Employee’s pay after these taxes $20,000.00.Source: IRS Publication 926 (2026): Social Security and Medicare on cash wages of $3,000 or more, 6.2% and 1.45% each from employer and employee, wage base $184,500; paying the employee’s share from your own funds, https://www.irs.gov/publications/p926 (wages to your spouse, child under 21 or parent)
- Cash wages in 2026 $5,000.00, Who is the employee? Under 18, household work is not their main job, Paid $1,000 or more in any quarter? Yes, State unemployment tax rate 2.7%, State unemployment wage base $7,000.00 gives Social Security, your share $0.00, Federal unemployment tax (FUTA) $30.00, State unemployment tax $135.00, Your employer taxes $165.00, Federal tax on Schedule H $30.00.Source: IRS Publication 926 (2026): Social Security and Medicare on cash wages of $3,000 or more, 6.2% and 1.45% each from employer and employee, wage base $184,500; paying the employee’s share from your own funds, https://www.irs.gov/publications/p926 (the under-18 exemption is for Social Security and Medicare only)
- Cash wages in 2026 $20,000.00, Who is the employee? My parent who cares for my child (the exception), Paid $1,000 or more in any quarter? Yes, State unemployment tax rate 2.7%, State unemployment wage base $7,000.00 gives Social Security, your share $1,240.00, Medicare, your share $290.00, Federal unemployment tax (FUTA) $0.00, State unemployment tax $0.00, Your employer taxes $1,530.00, Federal tax on Schedule H $3,060.00.Source: IRS Publication 926 (2026): Social Security and Medicare on cash wages of $3,000 or more, 6.2% and 1.45% each from employer and employee, wage base $184,500; paying the employee’s share from your own funds, https://www.irs.gov/publications/p926 (the parent exception; parents are never FUTA wages)
How it works
- Social Security and Medicare apply when cash wages to this employee in 2026 are $3,000 or more and the employee is not exempt (your spouse, your child under 21, or your parent outside the care-giving exception; or an employee under 18 whose main job is not household work).
- When they apply: your Social Security = 6.2% × the smaller of wages and $184,500; your Medicare = 1.45% × wages. The employee's share is the same 6.2% and 1.45%, plus 0.9% Additional Medicare Tax on wages over $200,000. Otherwise all of these are $0.
- FUTA applies when you answer yes to the $1,000-a-quarter question and the employee is not your spouse, child under 21 or parent. Then FUTA = (6.0% − 5.4% + credit reduction) × the smaller of wages and $7,000, and state unemployment tax = state rate × the smaller of wages and the state wage base. Otherwise both are $0.
- Your employer taxes = your Social Security + your Medicare + FUTA + state unemployment tax, plus the employee's Social Security and Medicare share when you pay it yourself.
- Schedule H = your share + the employee's share of Social Security and Medicare + Additional Medicare Tax + FUTA.
- Your total cost = wages + your employer taxes. Employee's pay after these taxes = wages − the share withheld (only the Additional Medicare Tax when you pay their share).
Exact arithmetic. Every amount is read as the exact decimal you typed, each result is an exact fraction, and it is rounded once to cents, half up.
Figures that change each year
The data check should compare these with the next year's Publication 926.
| Figure | 2026 value | Source | Next update |
|---|---|---|---|
| Social Security and Medicare threshold | $3,000 | Publication 926 (2026) | Publication 926 for 2027 (the Social Security Administration announces it in October) |
| Social Security wage base | $184,500 | Publication 926 (2026) | Same |
| Social Security and Medicare rates | 6.2% and 1.45% each | Publication 926 (2026) | Set by law; check each Publication 926 |
| Additional Medicare Tax | 0.9% over $200,000 | Publication 926 (2026) | Set by law |
| FUTA quarterly threshold | $1,000 | Publication 926 (2026) | Set by law |
| FUTA rate, credit and wage base | 6.0%, 5.4%, $7,000 | Publication 926 (2026) | Set by law; credit reduction states named each November |
When the data is out of date
After December 31, 2026 the page keeps using the 2026 figures and says so above the result.
Assumptions
- Wages are cash wages paid in 2026 to one household employee.
- You pay state unemployment tax on time, so the full 5.4% FUTA credit applies; a credit reduction is added only when typed. State unemployment tax is figured only when FUTA applies; the state rate and wage base are typed, and the defaults are only examples.
- Income tax withholding is not included. An estimate, not tax advice.
Worked examples by hand
$26,000 a year ($500 a week). Your Social Security = 6.2% × 26,000 = $1,612; your Medicare = 1.45% × 26,000 = $377; FUTA = 0.6% × 7,000 = $42; state = 2.7% × 7,000 = $189. Your taxes = $2,220; the employee's share = $1,989; Schedule H = 2 × 1,989 + 42 = $4,020; your total cost = $28,220; the employee keeps $24,011.
$2,900, under $3,000. No Social Security or Medicare. FUTA = 0.6% × 2,900 = $17.40; state = 2.7% × 2,900 = $78.30; your taxes = $95.70; Schedule H = $17.40.
$30,000 and you pay their share. Each share = 1,860 + 435 = $2,295. Your taxes = 2,295 + 2,295 + 42 + 189 = $4,821; Schedule H = 4,590 + 42 = $4,632; the employee keeps all $30,000.
Your child under 21, $20,000. No Social Security, Medicare or FUTA: $0.
A 16-year-old babysitter, $5,000. No Social Security or Medicare; FUTA = 0.6% × 5,000 = $30; state = 2.7% × 5,000 = $135; your taxes $165.
Your parent under the care-giving exception, $20,000. Your share = 1,240 + 290 = $1,530; no FUTA (a parent's wages are never FUTA wages); Schedule H = $3,060.
Other questions people ask
Do I have to pay nanny taxes in 2026?
You owe Social Security and Medicare tax if you pay one household employee $3,000 or more in cash wages in 2026. You owe federal unemployment tax (FUTA) if you pay household employees $1,000 or more in cash wages in any calendar quarter of 2025 or 2026. Most states have their own unemployment tax as well.
How much is the nanny tax?
Social Security is 6.2% and Medicare 1.45% from you, and the same from the employee, so 15.3% in all. FUTA is 0.6% of the first $7,000 of wages (at most $42) after the credit for state unemployment tax. For $26,000 of wages and a 2.7% state rate on $7,000, your own taxes are $2,220 and the employee’s share is $1,989.
Who is exempt from nanny taxes?
Wages to your spouse, your child under 21 or your parent are not Social Security, Medicare or FUTA wages. A parent who cares for your child is an exception for Social Security and Medicare when your child is under 18 (or needs adult care) and you are divorced and not remarried, widowed, or living with a spouse who cannot care for the child. Wages to an employee under 18 are free of Social Security and Medicare unless household work is their main job, but FUTA still applies.
Can I pay my nanny’s share of the taxes?
Yes. You can pay the employee’s Social Security and Medicare from your own money instead of withholding it. What you pay counts as extra wages for income tax, but not as Social Security, Medicare or FUTA wages, so it does not raise these taxes further.
Do I have to withhold income tax?
No. You withhold federal income tax only if the employee asks and you agree. This calculator leaves income tax withholding out.
What counts as cash wages?
Cash, checks, money orders and transfers. The value of food, lodging, clothing and other noncash items does not count, but cash you give in place of them does.
How do I pay the nanny tax?
Report the taxes on Schedule H with your Form 1040 and give the employee a Form W-2. To avoid an underpayment penalty, pay during the year by raising the withholding from your own pay or by making estimated tax payments.