Nanny Tax Calculator

If you pay any one household employee $3,000 or more in cash wages during 2026, you owe Social Security and Medicare (FICA) tax on all of those wages — not just the amount above $3,000. The combined FICA rate is 15.3%, split evenly: 7.65% is the employer's share, and 7.65% is typically withheld from the employee's pay.

FUTA applies if you pay $1,000 or more in total household wages during any single calendar quarter of 2025 or 2026. It's paid entirely by the employer, at an effective rate of about 0.6% on the first $7,000 of wages per employee (after the standard state unemployment tax credit).

Yes — you can owe FUTA without owing FICA (e.g., wages spike in one quarter but total under $3,000 for the year) and you can owe FICA without ever owing FUTA (steady wages that never exceed $1,000 in any single quarter). Check both thresholds separately.

You're not legally required to withhold the employee's 7.65% share — some employers instead pay it themselves as an added benefit. If you don't withhold it, your total cost increases by that amount instead of the nanny's take-home pay decreasing.

Usually yes, in addition to federal FUTA — most states require household employers to pay state unemployment insurance too, at a rate set by your state (commonly 1-3%+ for new employers, though it varies significantly). This is often the biggest reason a rough "~10% of wages" employer-cost estimate is higher than FICA + FUTA alone. Enter your state's SUI rate if you know it.