2024 Nanny Tax Calculator | Accurate Household Employment Tax Estimator
Our free nanny tax calculator helps US households comply with IRS requirements for domestic employees. Calculate Social Security, Medicare, FUTA, and state unemployment taxes for your nanny, senior caregiver, or housekeeper in minutes. Updated for 2024 tax rates and wage bases.
Important: This calculator provides estimates only. Consult a tax professional for official advice. You may have additional state/local tax obligations.
How Our Nanny Tax Calculator Works
This nanny tax calculator uses 2024 IRS guidelines to estimate household employment taxes:
Calculates Social Security tax at 6.2% up to $168,600 wage base
Determines Medicare tax at 1.45% of all wages
Estimates FUTA at 0.6% of first $7,000 in wages
Computes SUTA using current state unemployment tax rates
Accounts for employee withholdings (7.65% total)
2024 Tax Thresholds:
• Social Security/Medicare: $2,700+ annually to any one employee
• Federal Unemployment (FUTA): $1,000+ in any calendar quarter
• Most states require unemployment insurance registration immediately
Our nanny tax calculator 2024 covers these key obligations:
Federal Taxes
Social Security: 6.2% employer + 6.2% employee (up to wage base)
Medicare: 1.45% employer + 1.45% employee (no wage limit)
FUTA: 0.6% employer on first $7,000 (after state unemployment paid)
State Requirements
Unemployment insurance: Rates vary from 1% to 4%
Disability insurance: Required in CA, HI, NJ, NY, RI
Workers compensation: Often required for household employees
2024 Nanny Tax Changes
The nanny calculator tax incorporates these updates:
Social Security wage base: Increased to $168,600 (from $160,200)
State unemployment rates: Many states adjusted rates downward
Standard mileage rate: Increased to 67¢ per business mile
Form W-4 updates: New withholding options for employees
Step-by-Step Nanny Tax Compliance
Follow these steps after using our nanny tax estimator:
Register as household employer with state
Obtain EIN from IRS if you don't have one
Withhold taxes from each paycheck
File Schedule H with your personal tax return
Provide W-2 to employee by January 31
Pro Tip: Consider using a payroll service to automatically calculate withholdings, file taxes, and generate year-end forms. Many integrate directly with this calculator's outputs.
Frequently Asked Questions
What if I pay my nanny less than $2,700 annually?
You're exempt from Social Security/Medicare taxes but may still owe state unemployment taxes if you pay $1,000+ per quarter.
Are bonuses and gifts taxable?
Yes, all cash compensation is taxable. Non-cash gifts under $100 may be exempt.
How do I handle overtime pay?
Domestic workers are non-exempt under FLSA. Check the "Include Overtime" box in our calculator for accurate estimates.
Can I deduct nanny expenses?
You may qualify for Child Care FSA or Dependent Care Credit. Consult a tax professional.