Nanny Tax Calculator (Schedule H)

Calculate household employment taxes for nannies, housekeepers, and other household employees.

By Konstantin Iakovlev · Updated April 2026 · Source: IRS — Forms, Instructions & Publications

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Nanny Lives In Your Home?

Total Employer Tax

$2,526.00

Total Cost (Wages + Tax)

$32,526.00

Quarterly Payment

$631.50

Employer Tax Breakdown

Annual Nanny Wages$30,000.00
2026 Threshold$3,000.00
Employer Social Security (6.2%)$1,860.00
Employer Medicare (1.45%)$435.00
Total Employer FICA (7.65%)$2,295.00
FUTA (0.6% on first $7,000.00)$42.00
State Unemployment (2.7% on first $7,000.00)$189.00
Total Employer Taxes$2,526.00
Total Cost to You$32,526.00

Employee Withholding (from wages)

Employee FICA (7.65%)$2,295.00
Net Wages to Nanny$27,705.00

Quarterly Payment Schedule (Schedule H)

Q1 (Jan-Mar)$631.50 due April 15
Q2 (Apr-Jun)$631.50 due June 15
Q3 (Jul-Sep)$631.50 due September 15
Q4 (Oct-Dec)$631.50 due January 15 (next year)

Use the Nanny Tax Calculator (Schedule H) above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Hiring a nanny, housekeeper, caregiver, or other household worker turns you into an employer in the eyes of the IRS, and the Schedule H taxes that come with it are easy to get wrong. The calculations here pin down your 2026 household employment tax obligations so you stay compliant and avoid the penalties and surprise bills that follow a miscalculation.

Your liability is built from Social Security, Medicare, and Federal Unemployment Tax (FUTA), all driven by the employee's gross wages. In 2026, Social Security runs 12.4% (split 6.2% employer and 6.2% employee) on wages up to $177,000, and Medicare runs 2.9% (1.45% each side) on all wages. FUTA is 6.0% on the first $7,000 of wages, an amount that state unemployment tax credits can bring down.

These taxes only kick in once you pay a household employee more than $2,700 in cash wages during 2026. Skipping the step of withholding the employee's share of Social Security and Medicare is a frequent slip, and it leaves you absorbing that cost yourself. Line up an Employer Identification Number (EIN) ahead of time as well, since you'll need one to file Schedule H.

Example: Full-time Nanny's Taxable Wages

  1. 1 Input: A nanny earns $4,000 per month, totaling $48,000 in gross wages for 2026. The employer has paid all state unemployment taxes on time.
  2. 2 Calculation: Social Security: $48,000 * 12.4% = $5,952. Medicare: $48,000 * 2.9% = $1,392. FUTA: $7,000 * (6.0% - 5.4% state credit) = $42 (assuming maximum state credit). Total household employment taxes = $5,952 + $1,392 + $42 = $7,386.
  3. 3 Result: The total household employment tax liability for the year 2026 for this employer, based on the nanny's wages, is $7,386.
  4. 4 Context: This $7,386 represents the total employer and employee portions of Social Security and Medicare, plus the employer's FUTA liability. The employer is responsible for remitting these taxes to the IRS, typically quarterly, or through increased income tax withholding.

Source: IRS — Forms, Instructions & Publications · Last updated: April 2026

Frequently Asked Questions

Do I have to pay nanny taxes?
Yes, if you pay any household employee $2,800 or more in 2026, you must withhold and pay Social Security and Medicare taxes (FICA). You may also owe federal and state unemployment taxes if you pay $1,000+ in any quarter.
How much are nanny taxes as a percentage?
The employer share of FICA is 7.65% (6.2% Social Security + 1.45% Medicare). You also withhold the employee share of 7.65% from their wages. Federal unemployment (FUTA) adds 0.6% on the first $7,000. Total employer cost is roughly 8-10% above wages.
What form do I file for nanny taxes?
File Schedule H with your personal Form 1040 to report household employment taxes annually. You must also provide your nanny with a W-2 by January 31. You may need to make quarterly estimated tax payments or increase your own W-4 withholding to cover the liability.

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