Nanny Tax Calculator 2026 (Household Employee Schedule H)
Estimate your 2026 Schedule H Form 1040 household-employer liability. Includes employer FICA 7.65%, FUTA, state SUTA, and optional employee FICA / federal income tax withholding. Based on IRS Publication 926.
| Gross cash wages | — |
| Employer Social Security 6.2% | — |
| Employer Medicare 1.45% | — |
| Employee Social Security 6.2% (withheld or paid by you) | — |
| Employee Medicare 1.45% (withheld or paid by you) | — |
| Additional Medicare 0.9% (employee only) | — |
| FUTA (6.0% on $7K, less 5.4% credit = $42) | — |
| State SUTA | — |
| Federal income tax withheld (optional) | — |
| Total Schedule H liability (Form 1040) | — |
| Nanny take-home (net) | — |
If you pay a household worker (nanny, housekeeper, eldercare aide, gardener) cash wages of $2,800 or more in 2026 (IRS Pub 926 threshold), you owe Schedule H household employment taxes attached to your Form 1040. Schedule H covers employer + employee FICA (15.3% combined), FUTA ($42 per worker), and any state unemployment tax (SUTA).
The 2026 Nanny Tax Thresholds (IRS Pub 926)
Three triggers to know: $2,800 cash wages per household worker in 2026 triggers FICA (Social Security 6.2% + Medicare 1.45% each side). $1,000 cash wages in any quarter triggers FUTA (6.0% on first $7,000, less 5.4% state credit = $42 per worker per year). State SUTA thresholds vary — most states match the federal $1,000/quarter trigger. Wages paid to your own spouse, parent (with exceptions), or anyone under 21 are exempt from FICA. Cash wages include checks, direct deposit, and money apps — but not food, lodging, or transit passes.
Withhold From Nanny or Pay Both Halves Yourself
You have two choices for the employee FICA share (7.65%): (1) Withhold it from nanny's paycheck — most common, cuts your cost. (2) Pay it yourself as a benefit — but then that 7.65% counts as ADDITIONAL taxable wages to the nanny (gross-up), increasing your total cost by ~8.3%. Federal income tax withholding is optional — most household employers skip it and let the nanny make estimated payments via Form 1040-ES. If you do withhold, get a signed Form W-4 and use IRS Pub 15-T tables.
How Schedule H Plugs Into Form 1040
You file Schedule H once per year with your 1040. The total liability gets added to your individual income tax bill (or reduces your refund). To avoid an underpayment penalty, increase your W-2 withholding or pay quarterly estimates via Form 1040-ES. You also need to give your nanny Form W-2 by January 31 and file Form W-3 + W-2 copy A with the SSA. You'll need an Employer Identification Number (EIN) from IRS Form SS-4 (free, online, 5 minutes).
Common Nanny Tax Mistakes To Avoid
(1) Paying nanny as 1099 contractor. Nannies are W-2 employees by IRS definition — you control where/when/how they work. Misclassification triggers back FICA, FUTA, SUTA, plus penalties. (2) Forgetting state registration. Most states require a state EIN, quarterly SUTA wage reports, and new-hire reporting within 20 days of hire. (3) Skipping the $2,800 threshold check. If wages hit $2,800 mid-year, FICA applies to ALL wages paid that year, not just the excess. (4) Missing the 2-week severance grace. Final cash wages paid within 2 weeks of termination remain subject to all the same taxes.
Last updated May 2026. Sources: IRS Publication 926 + Schedule H instructions, cited in tool output.