Nanny Tax Calculator

Estimate the household employment taxes (often called "nanny taxes") you may owe as an employer for your nanny or other household employee.

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What Are "Nanny Taxes"?

"Nanny tax" is the common term for the household employment taxes that you, as an employer, are required to pay for anyone who works in your home (e.g., a nanny, senior caregiver, or housekeeper). If you pay a household employee more than a certain amount in a calendar year, you are responsible for withholding and paying federal and state taxes.

The primary taxes involved are:

  • FICA Taxes (Social Security & Medicare): This is a shared tax. You withhold 7.65% from your employee's pay, and you contribute a matching 7.65% as the employer.
  • FUTA Tax (Federal Unemployment): This tax is paid solely by you, the employer. It is calculated on the first $7,000 of the employee's wages.
  • State Unemployment Tax (SUTA): This is also an employer-paid tax, and the rate varies significantly by state.

How to Use the Nanny Tax Calculator

  1. Enter Gross Wages: Input the total gross wages you will pay your household employee for the year.
  2. Check Thresholds: The calculator uses the current IRS thresholds. If you pay more than the threshold ($2,700 in 2024), you are generally required to pay FICA taxes.
  3. Calculate: See an estimate of your employer portion of FICA taxes and potential FUTA taxes.

Frequently Asked Questions (FAQ)

Who is considered a "household employee"?

According to the IRS, you have a household employee if you can control not only what work is done, but also how it is done. This is different from an independent contractor, who controls how the work is performed. Nannies are almost always considered household employees, not independent contractors.

Does this calculator include state taxes?

No. This calculator focuses on the federal FICA and FUTA taxes. State unemployment tax (SUTA) rates vary widely from state to state. Additionally, you may be required to withhold state income tax depending on your state's laws. This tool provides a baseline federal estimate.

Tax & Legal Disclaimer

This calculator provides a simplified estimate for informational purposes ONLY and is NOT a substitute for professional tax or legal advice. Tax laws are complex and change annually. You MUST consult with a qualified CPA or tax professional to understand your specific obligations.