Nanny Tax Calculator (Schedule H)
Estimate household employment taxes: Social Security, Medicare, Additional Medicare, FUTA, and state UI. See Schedule H total, employer share, nanny take-home, and total family cost — with 2024, 2025, and 2026 thresholds.
FICA threshold: $3,000 · SS wage base: $184,500
Gross cash paid to nanny/housekeeper per year
Triggers FUTA and state UI obligations
Covering employee share makes it W-2 taxable income
Optional — only if nanny gave you a W-4
Default 2.7% new-employer rate — check your state
Total Schedule H
$4,632Employer share
$2,526Total family cost
$32,526| Tax | Employee | Employer | Total |
|---|---|---|---|
| Social Security (6.2%) | $1,860.00 | $1,860.00 | $3,720.00 |
| Medicare (1.45%) | $435.00 | $435.00 | $870.00 |
| FUTA (0.6% net, on first $7,000) | — | $42.00 | $42.00 |
| State UI (est. 2.7%) | — | $189.00 | $189.00 |
| Total | $2,295.00 | $2,526.00 | $4,821.00 |
Schedule H (Form 1040) reports FICA both halves + FUTA + any federal income tax withheld. State UI is reported separately to your state agency. FUTA is shown at the net 0.6% assuming full 5.4% state credit on timely state UI payment.
| Gross cash wages | $30,000.00 |
| − Employee FICA share | $2,295.00 |
| Take-home wages | $27,705.00 |
How nanny tax works
When you pay someone to work in your home — a nanny, housekeeper, home health aide, gardener — the IRS treats you as a household employer, and the worker as a W-2 household employee (not a 1099 contractor) if you control what they do and how they do it. Schedule H is how you reconcile and pay those employment taxes with your annual Form 1040.
There are two separate triggers with different thresholds:
- FICA (Social Security + Medicare) applies if cash wages to any one household employee reach $3,000 for 2026 ($2,800 for 2025, $2,700 for 2024). You and the employee each owe 7.65% (6.2% SS + 1.45% Medicare).
- FUTA (Federal Unemployment Tax) applies if cash wages to any household employee hit $1,000 or more in any calendar quarter, in either the current year or the prior year. FUTA is employer-only, 0.6% net on the first $7,000 of wages per employee (6.0% gross, minus a 5.4% credit for paying state UI on time).
The two triggers are independent — you can owe FUTA without owing FICA, or vice versa. State unemployment insurance (SUI/SUTA) is separate, reported directly to your state, and rates vary widely. New-employer rates are typically 2.5–3.5%.
2026 key figures
- FICA threshold: $3,000 cash wages per employee per year
- Social Security wage base: $184,500 @ 6.2% each (employee + employer)
- Medicare: 1.45% each, no cap
- Additional Medicare: 0.9% on employee wages above $200,000 (employer withholds, no match)
- FUTA quarterly trigger: $1,000 in any calendar quarter
- FUTA wage base: first $7,000 per employee, net 0.6% (with full state credit)
Frequently asked questions
What is the nanny tax threshold for 2026?
For 2026, you owe Social Security and Medicare (FICA) taxes on wages paid to any one household employee if you pay them $3,000 or more in cash wages during the year. That's up from $2,800 in 2025 and $2,700 in 2024. Below the threshold, no FICA is owed. FUTA is triggered separately if you pay any household employee $1,000 or more in any calendar quarter.
What taxes does Schedule H report?
Schedule H (Form 1040) reports the FICA taxes you owe on household wages (both employee and employer shares of Social Security at 6.2% and Medicare at 1.45%), plus FUTA at a net 0.6% on the first $7,000 of wages per employee, plus any federal income tax you withheld for the employee (optional, only if they filed a W-4). State unemployment insurance tax is not on Schedule H — it's reported directly to your state agency.
Do I have to withhold federal income tax from my nanny?
No — federal income tax withholding is optional for household employees. You're not required to withhold it unless the employee gives you a W-4 asking you to. Most families skip withholding and let the nanny handle their own estimated taxes. Either way, you must issue a W-2 and report wages at year-end.
Can I pay my nanny's share of FICA instead of deducting it?
Yes, and many families do. If you pay the employee's 7.65% share instead of withholding it, that extra amount counts as additional taxable income to the employee (it's added to their W-2 box 1 wages), though it's not additional Social Security or Medicare wages. Total family cost is higher but the nanny receives the full gross wage.
What's the Social Security wage base for 2026?
For 2026 the Social Security wage base is $184,500 (up from $176,100 in 2025). Only the first $184,500 of cash wages is subject to the 6.2% SS tax. Medicare applies to all wages with no cap, and the 0.9% Additional Medicare Tax applies to employee wages above $200,000 — employer must withhold but does not match.
Sources
Related Calculators
FICA & Social Security
6.2% SS to $176,100, 1.45% Medicare, 0.9% additional Medicare
Self-Employment Tax
15.3% on 92.35% net, 6.2% SS to wage base, deductible half
W-4 Withholding Optimizer
Iterative W-4 tuning to hit a target refund or balance due at year-end.
Dependent Care Credit
20–35% of $3k/$6k expenses (Form 2441)