# How much is the nanny tax?

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.

- Page: https://www.acalculator.org/finance/nanny-tax-calculator
- JSON spec: https://www.acalculator.org/finance/nanny-tax-calculator.json
- Version: c48dfe445236

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| wages | Cash wages in 2026 | Cash wages (cash, checks, transfers) you pay this employee in 2026. |
| who | Who is the employee? | Wages to some relatives and to some young workers are free of these taxes. |
| qtr | Paid $1,000 or more in any quarter? | Cash wages to all household employees of $1,000 or more in a calendar quarter of 2025 or 2026 bring in unemployment tax. |
| share | I pay the employee’s share | Pay the employee’s Social Security and Medicare from your own money instead of withholding it. |
| suta | State unemployment tax rate | Your state unemployment rate for household employers. The default is only an example. |
| sutabase | State unemployment wage base | Wages per employee your state taxes for unemployment each year. The default is only an example. |
| futacr | FUTA credit reduction (optional) | Extra FUTA rate in a credit reduction state, as the Form 940 instructions list it; 0 elsewhere. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| employerTaxes | Your employer taxes | Your Social Security and Medicare share + FUTA + state unemployment tax, plus the employee’s share if you pay it. |
| scheduleH | Federal tax on Schedule H | Both shares of Social Security and Medicare + Additional Medicare withheld + FUTA (before any income tax you withhold). |
| socialSecurity | Social Security, your share | 6.2% of wages up to $184,500 when the $3,000 threshold is met. |
| medicare | Medicare, your share | 1.45% of wages when the threshold is met. |
| employeeShare | Employee’s share | 6.2% Social Security + 1.45% Medicare + 0.9% Additional Medicare on wages over $200,000. |
| futa | Federal unemployment tax (FUTA) | (6.0% − 5.4% + any credit reduction) × wages up to $7,000, when FUTA applies. |
| suta | State unemployment tax | State rate × wages up to the state wage base, when FUTA applies. |
| totalCost | Your total cost | Wages + your employer taxes. |
| takeHome | Employee’s pay after these taxes | Wages − the share withheld from the employee (before any income tax withholding). |
| fica | Social Security and Medicare | Whether these taxes apply to the wages, and why. |

## 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.

## Worked examples

1. wages = $26,000.00, who = other, qtr = yes, suta = 2.7%, sutabase = $7,000.00 gives socialSecurity = $1,612.00, medicare = $377.00, employeeShare = $1,989.00, futa = $42.00, suta = $189.00, employerTaxes = $2,220.00, scheduleH = $4,020.00, totalCost = $28,220.00, takeHome = $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.
2. wages = $2,900.00, who = other, qtr = yes, suta = 2.7%, sutabase = $7,000.00 gives socialSecurity = $0.00, medicare = $0.00, futa = $17.40, suta = $78.30, employerTaxes = $95.70, scheduleH = $17.40, takeHome = $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).
3. wages = $30,000.00, who = other, qtr = yes, share = yes, suta = 2.7%, sutabase = $7,000.00 gives socialSecurity = $1,860.00, medicare = $435.00, employerTaxes = $4,821.00, scheduleH = $4,632.00, takeHome = $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).
4. wages = $20,000.00, who = family, qtr = yes, suta = 2.7%, sutabase = $7,000.00 gives employerTaxes = $0.00, scheduleH = $0.00, takeHome = $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).
5. wages = $5,000.00, who = minor, qtr = yes, suta = 2.7%, sutabase = $7,000.00 gives socialSecurity = $0.00, futa = $30.00, suta = $135.00, employerTaxes = $165.00, scheduleH = $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).
6. wages = $20,000.00, who = parent, qtr = yes, suta = 2.7%, sutabase = $7,000.00 gives socialSecurity = $1,240.00, medicare = $290.00, futa = $0.00, suta = $0.00, employerTaxes = $1,530.00, scheduleH = $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).

## FAQ

### 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.

## 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)