✓ 2026 IRS Guidance Compliant
✓ 2026 Payroll Rules Updated
Nanny Tax Guide 2026
Complete payroll guide for household employers. Federal and state rules.
Hiring a nanny means you are a household employer. You must pay FICA taxes if you pay $3,000 or more per year to that employee (the 2026 threshold, up from $2,800 in 2025), and FUTA taxes if you pay $1,000 or more in any calendar quarter.
- FICA: 7.65% for employer and 7.65% for employee (15.3% total), applies once wages reach $3,000/year.
- FUTA: 6% federal unemployment tax on the first $7,000 in wages (usually 0.6% net after state credit), triggered by $1,000+ paid in any single quarter.
- Overtime: The first $12,500 of qualified overtime premium pay is exempt from federal income tax in 2026 (does not reduce FICA).
Calculate Your Nanny Paycheck
Get an exact breakdown of FICA, FUTA, and total employer cost.
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