Household Employer
Nanny Tax Calculator 2025
Calculate your total cost as a household employer — FICA, FUTA, and state unemployment — plus your nanny's net take-home pay.
Not tax advice.Uses 2025 FICA rates. State SUI rates vary — enter your state's new employer rate or check your state DOR. Federal income tax withholding is optional for household employees. Always file Schedule H with your annual Form 1040.
Nanny / Household Employee Details
New employer rate is typically 2.7%. Check your state DOR for your specific rate.
Annual Tax Breakdown
Gross Annual Wages$40,000
Employee Withholding
Social Security (6.2%)−$2,480
Medicare (1.45%)−$580
Employee Net Pay$36,940
Your Employer Cost
Employer Social Security Match+$2,480
Employer Medicare Match+$580
Federal Unemployment (FUTA)+$42
Total Annual Employer Cost$43,291
Schedule H reminder: File Schedule H (Form 1040) annually by April 15. Remit quarterly estimated tax payments if annual FICA exceeds $1,000. Federal income tax withholding is optional but recommended — provide your nanny with Form W-4. You must issue a W-2 by January 31.
Nanny tax explained
2025 Thresholds
| FICA threshold per employee | $2,700 |
| FUTA quarterly threshold | $1,000 |
| SS wage base | $176,100 |
| Child Care Credit max (1 child) | $3,000 |
| Dependent Care FSA max | $5,000 |
Your obligations timeline
Jan 31Issue W-2 to your nanny
Apr 15File Schedule H with your 1040
QuarterlyAdd nanny taxes to estimated payments if >$1,000/year
Dec 31Verify FUTA liability; remit if owed
Nanny tax FAQ
What taxes do I owe as a nanny employer?
You owe: (1) Employer FICA — 6.2% Social Security + 1.45% Medicare matched on all wages. (2) Withhold the same amounts from your nanny's paycheck (employee side). (3) Federal Unemployment Tax (FUTA) — 0.6% on the first $7,000 of wages. (4) State unemployment insurance (SUI) at your state's new-employer rate. Federal income tax withholding is optional unless your nanny requests it on Form W-4.
When do nanny taxes apply?
The nanny tax threshold in 2025 is $2,700 per employee for the calendar year (adjusted annually). If total household employee wages exceed $1,000 in any calendar quarter, FUTA also applies. Below these thresholds, you generally have no withholding obligation for that employee.
How do I actually pay nanny taxes?
Report and pay nanny taxes on Schedule H attached to your Form 1040, due by April 15. If you owe more than $1,000 annually, include nanny FICA in your quarterly estimated tax payments (Form 1040-ES) to avoid an underpayment penalty. You must give your nanny a W-2 by January 31.
Can I deduct nanny expenses?
Yes — two ways. The Child and Dependent Care Tax Credit (Form 2441) gives a 20%–35% credit on up to $3,000 for one child ($6,000 for two+). A Dependent Care FSA lets you use up to $5,000 in pre-tax dollars from your employer benefits. You can combine both for maximum benefit, subject to IRS rules.
Do I need a payroll service for a nanny?
You are not legally required to use a payroll service, but services like SurePayroll, GTM Payroll, or Breedlove simplify the process significantly — they handle W-2 filing, quarterly payments, and state registrations. Annual cost is typically $400–$900. Many CPAs recommend it to avoid errors.
Let a payroll service handle it for you
GTM Payroll and SurePayroll specialize in household employee payroll. They file W-2s, remit taxes, and handle state registrations automatically.