{
  "id": "nanny-tax",
  "version": "c48dfe445236",
  "status": "published",
  "name": "Nanny Tax Calculator",
  "question": "How much is the nanny tax?",
  "summary": "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.",
  "category": "finance",
  "subcategory": "tax-and-pay",
  "url": "https://www.acalculator.org/finance/nanny-tax-calculator",
  "markdown": "https://www.acalculator.org/finance/nanny-tax-calculator.md",
  "kind": "function",
  "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 $7,000, and state unemployment = state rate × wages up to the state base. Your taxes = your share + FUTA + state tax (+ the employee’s share if you pay it). Schedule H = both shares + Additional Medicare + FUTA.",
  "assumptions": [
    "Wages paid in 2026 to one household employee (IRS Publication 926, 2026); all wages are cash wages.",
    "You pay state unemployment tax on time, so the full 5.4% FUTA credit applies; state unemployment tax is figured only when FUTA applies.",
    "Federal and state income tax withholding (only if you and the employee agree) is not included.",
    "An estimate, not tax advice."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "wages": {
        "title": "Cash wages in 2026",
        "description": "Cash wages (cash, checks, transfers) you pay this employee in 2026.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "who": {
        "title": "Who is the employee?",
        "description": "Wages to some relatives and to some young workers are free of these taxes.",
        "type": "string",
        "enum": [
          "other",
          "family",
          "parent",
          "minor"
        ]
      },
      "qtr": {
        "title": "Paid $1,000 or more in any quarter?",
        "description": "Cash wages to all household employees of $1,000 or more in a calendar quarter of 2025 or 2026 bring in unemployment tax.",
        "type": "string",
        "enum": [
          "yes",
          "no"
        ]
      },
      "share": {
        "title": "I pay the employee’s share",
        "description": "Pay the employee’s Social Security and Medicare from your own money instead of withholding it.",
        "type": "boolean"
      },
      "suta": {
        "title": "State unemployment tax rate",
        "description": "Your state unemployment rate for household employers. The default is only an example.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 100
      },
      "sutabase": {
        "title": "State unemployment wage base",
        "description": "Wages per employee your state taxes for unemployment each year. The default is only an example.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "futacr": {
        "title": "FUTA credit reduction (optional)",
        "description": "Extra FUTA rate in a credit reduction state, as the Form 940 instructions list it; 0 elsewhere.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 5.4
      }
    }
  },
  "outputs": {
    "employerTaxes": {
      "label": "Your employer taxes",
      "description": "Your Social Security and Medicare share + FUTA + state unemployment tax, plus the employee’s share if you pay it.",
      "format": "money"
    },
    "scheduleH": {
      "label": "Federal tax on Schedule H",
      "description": "Both shares of Social Security and Medicare + Additional Medicare withheld + FUTA (before any income tax you withhold).",
      "format": "money"
    },
    "socialSecurity": {
      "label": "Social Security, your share",
      "description": "6.2% of wages up to $184,500 when the $3,000 threshold is met.",
      "format": "money"
    },
    "medicare": {
      "label": "Medicare, your share",
      "description": "1.45% of wages when the threshold is met.",
      "format": "money"
    },
    "employeeShare": {
      "label": "Employee’s share",
      "description": "6.2% Social Security + 1.45% Medicare + 0.9% Additional Medicare on wages over $200,000.",
      "format": "money"
    },
    "futa": {
      "label": "Federal unemployment tax (FUTA)",
      "description": "(6.0% − 5.4% + any credit reduction) × wages up to $7,000, when FUTA applies.",
      "format": "money"
    },
    "suta": {
      "label": "State unemployment tax",
      "description": "State rate × wages up to the state wage base, when FUTA applies.",
      "format": "money"
    },
    "totalCost": {
      "label": "Your total cost",
      "description": "Wages + your employer taxes.",
      "format": "money"
    },
    "takeHome": {
      "label": "Employee’s pay after these taxes",
      "description": "Wages − the share withheld from the employee (before any income tax withholding).",
      "format": "money"
    },
    "fica": {
      "label": "Social Security and Medicare",
      "description": "Whether these taxes apply to the wages, and why.",
      "format": "text"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "wages": 26000,
      "who": "other",
      "qtr": "yes",
      "share": false,
      "suta": 2.7,
      "sutabase": 7000
    },
    "outputs": {
      "employerTaxes": 2220,
      "scheduleH": 4020,
      "socialSecurity": 1612,
      "medicare": 377,
      "employeeShare": 1989,
      "futa": 42,
      "suta": 189,
      "totalCost": 28220,
      "takeHome": 24011,
      "fica": "Yes: cash wages of $3,000 or more"
    },
    "text": "Paying a household employee $26,000.00 in 2026 costs you $2,220.00 in employer taxes."
  },
  "examples": [
    {
      "given": {
        "wages": 26000,
        "who": "other",
        "qtr": "yes",
        "suta": 2.7,
        "sutabase": 7000
      },
      "expect": {
        "socialSecurity": 1612,
        "medicare": 377,
        "employeeShare": 1989,
        "futa": 42,
        "suta": 189,
        "employerTaxes": 2220,
        "scheduleH": 4020,
        "totalCost": 28220,
        "takeHome": 24011
      },
      "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; FUTA 6.0% of the first $7,000 less a credit of up to 5.4%; family and under-18 exemptions; paying the employee’s share from your own funds, https://www.irs.gov/publications/p926; hand calculation in content.mdx; Python 3 check in docs/progress/WP-128/xcheck.py"
    },
    {
      "given": {
        "wages": 2900,
        "who": "other",
        "qtr": "yes",
        "suta": 2.7,
        "sutabase": 7000
      },
      "expect": {
        "socialSecurity": 0,
        "medicare": 0,
        "futa": 17.4,
        "suta": 78.3,
        "employerTaxes": 95.7,
        "scheduleH": 17.4,
        "takeHome": 2900
      },
      "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; FUTA 6.0% of the first $7,000 less a credit of up to 5.4%; family and under-18 exemptions; 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); Python 3 check in docs/progress/WP-128/xcheck.py"
    },
    {
      "given": {
        "wages": 30000,
        "who": "other",
        "qtr": "yes",
        "share": true,
        "suta": 2.7,
        "sutabase": 7000
      },
      "expect": {
        "socialSecurity": 1860,
        "medicare": 435,
        "employerTaxes": 4821,
        "scheduleH": 4632,
        "takeHome": 30000
      },
      "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; FUTA 6.0% of the first $7,000 less a credit of up to 5.4%; family and under-18 exemptions; paying the employee’s share from your own funds, https://www.irs.gov/publications/p926 (paying the employee’s share from your own funds); hand calculation in content.mdx; Python 3 check in docs/progress/WP-128/xcheck.py"
    },
    {
      "given": {
        "wages": 20000,
        "who": "family",
        "qtr": "yes",
        "suta": 2.7,
        "sutabase": 7000
      },
      "expect": {
        "employerTaxes": 0,
        "scheduleH": 0,
        "takeHome": 20000
      },
      "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; FUTA 6.0% of the first $7,000 less a credit of up to 5.4%; family and under-18 exemptions; paying the employee’s share from your own funds, https://www.irs.gov/publications/p926 (wages to your spouse, child under 21 or parent); Python 3 check in docs/progress/WP-128/xcheck.py"
    },
    {
      "given": {
        "wages": 5000,
        "who": "minor",
        "qtr": "yes",
        "suta": 2.7,
        "sutabase": 7000
      },
      "expect": {
        "socialSecurity": 0,
        "futa": 30,
        "suta": 135,
        "employerTaxes": 165,
        "scheduleH": 30
      },
      "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; FUTA 6.0% of the first $7,000 less a credit of up to 5.4%; family and under-18 exemptions; 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); Python 3 check in docs/progress/WP-128/xcheck.py"
    },
    {
      "given": {
        "wages": 20000,
        "who": "parent",
        "qtr": "yes",
        "suta": 2.7,
        "sutabase": 7000
      },
      "expect": {
        "socialSecurity": 1240,
        "medicare": 290,
        "futa": 0,
        "suta": 0,
        "employerTaxes": 1530,
        "scheduleH": 3060
      },
      "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; FUTA 6.0% of the first $7,000 less a credit of up to 5.4%; family and under-18 exemptions; paying the employee’s share from your own funds, https://www.irs.gov/publications/p926 (the parent exception; parents are never FUTA wages); Python 3 check in docs/progress/WP-128/xcheck.py"
    }
  ],
  "sources": [
    "IRS, Publication 926 (2026), Household Employer’s Tax Guide: Social Security and Medicare on cash wages of $3,000 or more in 2026, 6.2% and 1.45% each, wage base $184,500; 0.9% Additional Medicare Tax withheld on wages over $200,000; FUTA on cash wages of $1,000 or more in a calendar quarter of 2025 or 2026, 6.0% of the first $7,000, credit of up to 5.4%; wages not counted (spouse, child under 21, parent, employee under 18) and the parent exception; paying the employee’s share; cash wages; Schedule H. https://www.irs.gov/publications/p926 (retrieved 2026-10-18)",
    "IRS, Instructions for Form 940 (credit reduction states). https://www.irs.gov/instructions/i940 (retrieved 2026-10-18)"
  ],
  "related": [
    "employee-cost",
    "payroll-tax",
    "w2",
    "child-tax-credit"
  ],
  "changelog": []
}