Employment Taxes

If you employ a care provider in your home, you're responsible for the so-called "Nanny Tax"-employment taxes for household employers. The tax applies if you pay more than $1,500 per year to any individual.

The tax rate is 15.3%, assuming that wages are under the Social Security cap of $97,500.

You may also owe unemployment taxes if you employ an at-home care provider. Our calculator doesn't include unemployment taxes because they vary from state to state.