How Much Do Nannies Make? Average Nanny Pay for 2026

Nanny pay has risen steadily over the past several years, driven by increased demand, inflation, and a competitive market for experienced caregivers. In 2026, the typical full-time nanny earns between $20 and $25 per hour nationwide — but averages tell only part of the story.

Where you live, how many children need care, the nanny's experience level, and the duties involved all move the rate up or down. A newborn specialist in San Francisco can command twice as much per hour as a recent high school graduate watching one toddler in a small town.

National average hourly rates

These figures are gross hourly wages before taxes and do not include benefits, overtime, or the employer's share of payroll taxes. We will cover the total cost to a family — often 15–25% above the base wage — later in this guide.

Nanny pay by number of children

Most nannies charge a base rate for one child and add a smaller amount for each additional child. The per-child increment is typically $1–$3 per hour rather than a full doubling or tripling of the rate, since one caregiver can supervise multiple children at once.

Rates shown are national averages for experienced nannies. Adjust up for high-cost cities and down for rural areas. Annual figures assume 52 weeks at 40 hours per week, no overtime, gross of taxes.

Nanny pay by experience level

Experience is one of the biggest factors in nanny pay. A caregiver who has worked with infants for a decade, holds certifications in CPR and early childhood education, and can handle children with special needs commands a premium over someone just starting out.

Rates are approximate and vary by location. Newborn Care Specialists (NCS) and night nannies often charge premium rates, especially for overnight work.

Location is the single biggest factor in how much a nanny costs. Nanny pay tracks closely with cost of living — families in expensive coastal cities pay dramatically more than families in the South or Midwest. The difference between San Francisco and Dallas can be as much as $15 per hour for the same level of care.

This makes sense when you think about it: nannies need to earn enough to live where they work, and supply and demand vary by market. Cities with more two-income professional households and fewer available caregivers tend to have the highest rates.

Average nanny hourly rates by city

Rates are approximate for full-time experienced nannies caring for 1–2 children. Actual rates vary by neighborhood, experience level, and job responsibilities.

Why location matters so much

Nanny rates are primarily driven by two factors: cost of living and supply and demand.

• Cost of living: Nannies need to earn enough to pay their own rent, groceries, and bills. In cities where a one-bedroom apartment costs $3,000+ per month, nanny rates have to be higher to attract and retain caregivers.
• Demand from families: Cities with a high concentration of two-income professional families have more demand for nannies. Tech hubs like San Francisco and Seattle, and financial centers like New York and Boston, consistently have the highest demand — and the highest pay.
• Local minimum wage: Many cities and states have minimum wages well above the federal $7.25/hr. Nanny rates are always well above minimum wage, but a higher local floor pushes all wages up.
• Cost of alternatives: If daycare centers in your area charge $2,000+ per month per child, nannies can charge more because families are already used to high child care costs.

The hourly rate is just the starting point. When you hire a nanny, you are becoming a household employer, which means you have payroll tax obligations and typically offer benefits. The total cost to employ a nanny is usually 15–25% higherthan the base wage alone.

This is one of the most common surprises for families new to hiring a nanny. They budget for the hourly rate, then discover they also need to cover Social Security, Medicare, unemployment taxes, paid time off, and more. Understanding the full cost upfront helps you avoid budget shortfalls later.

Payroll taxes (the "nanny tax")

If you pay a nanny $2,700 or more in a calendar year (the 2026 threshold), you are considered a household employer by the IRS. That means you are responsible for both employer-side payroll taxes and for withholding the employee's share of taxes from their pay.

Here is what employers pay:

• Social Security: 6.2% of wages (up to the Social Security wage base — $168,600 in 2026)
• Medicare: 1.45% of all wages (no wage cap)
• FUTA (Federal Unemployment Tax Act): 6% on the first $7,000 of wages, but most employers get a 5.4% credit for state unemployment taxes, reducing it to 0.6% ($42 per year)
• SUTA (State Unemployment Tax Act): Varies by state, typically 1–5% on the first $7,000–$50,000+ of wages depending on your state and experience rating

And here is what the employee pays (you withhold it from their paycheck):

• Federal Income Tax (FIT): Based on the employee's W-4 form, filing status, income, and deductions. Use our FIT tax guide to understand how it works.
• Social Security: 6.2% (matched by the employer)
• Medicare: 1.45% (matched by the employer)
• State Income Tax: Varies by state — some states have no income tax, others have progressive rates

Curious what a nanny actually takes home? Use our paycheck calculator to estimate net pay after federal and state withholding, FICA, and pre-tax deductions.

Benefits that add to cost

Beyond taxes, most families offer their nanny a benefits package. These are not legally required in most cases, but they are standard for full-time nannies and help attract and retain good caregivers.

• Paid time off (PTO): 1–2 weeks of paid vacation per year is standard, plus 5–10 paid holidays. Many families also offer 3–5 paid sick days.
• Health insurance stipend: Some families contribute $100–$400 per month toward the nanny's health insurance premium. This is a taxable benefit unless set up through a qualified plan.
• Mileage reimbursement: If the nanny uses their own car for driving kids to school, activities, or errands, you should reimburse them at the IRS standard mileage rate (67.5¢ per mile for 2026).
• Annual bonus or raise: A holiday bonus (typically one week's pay) or an annual raise of 3–5% is common for nannies who stay long-term.
• Professional development: Some families pay for CPR renewal, early childhood education classes, or nanny conferences.
• Guaranteed hours: Many nannies negotiate a guaranteed minimum number of paid hours per week, so they still get paid even if the family goes out of town or doesn't need care that day.

Example: $25/hr nanny's true cost

Let us walk through a concrete example. Suppose you hire a full-time nanny at $25 per hour, working 40 hours per week, and you live in a state with a 3% SUTA rate on the first $9,000. Here is what the total annual cost looks like:

Example for illustrative purposes only. Actual SUTA rates and wage bases vary by state. Paid time off and benefits are negotiable and vary by family.

In this example, the family's total cost is about $63,890 per year — roughly 23% above the $52,000 base wage. That is a meaningful difference, and it is why it is so important to budget for the full cost, not just the hourly rate.

Nannies can be paid in different ways depending on the arrangement. The pay structure affects everything from taxes to overtime eligibility to how easy it is to budget. Here are the most common structures and what you need to know about each.

Hourly vs salaried

Most nannies are paid hourly, which is generally the simplest and most compliant approach. Hourly pay makes it easy to track hours, calculate overtime, and adjust for schedule changes. Because nannies are almost always non-exempt employees under the FLSA (meaning they are entitled to overtime), hourly pay is the most straightforward way to comply with labor laws.

Some families prefer a salary arrangement for predictability. A salary can work, but you need to be careful: salaried non-exempt employees are still entitled to overtime, so the salary must be structured to account for any hours over 40 per week. Many families who use a salary structure set it based on a guaranteed number of hours (e.g., 45 hours per week) with overtime already built in.

• Hourly: Best for most situations. Simple, compliant, easy to adjust for schedule changes.
• Salary: Can work for predictable full-time schedules, but must still track hours and pay overtime correctly.
• Guaranteed hours: A hybrid where the nanny is guaranteed a minimum number of paid hours per week, even if you don't need them. Provides income security for the nanny.

Live-in vs live-out nannies

Live-out nannies commute to your home each day and are the most common arrangement. Live-in nannies live in your home, often with a private bedroom and bathroom, and sometimes meals and utilities included in their compensation.

Live-in nannies may have a slightly lower hourly rate because room and board are provided, but the total compensation value is comparable. Under federal law, live-in nannies are exempt from overtime requirements, though some states (like California) require overtime for live-in domestic workers after a certain number of hours per day or week.

• Live-out: Most common. Nanny commutes daily. Eligible for overtime after 40 hours/week under federal law.
• Live-in: Nanny lives in your home. Lower cash rate but includes housing. Exempt from federal overtime (check state rules).

Full-time vs part-time

Full-time nannies typically work 40–50 hours per week and command a higher hourly rate than part-time nannies. This may seem counterintuitive, but full-time nannies are more experienced, more committed, and harder to find — so they can charge more.

Part-time nannies (under 30 hours per week) often have a slightly lower hourly rate, but the gap is not huge. Many part-time nannies work multiple jobs to piece together full-time income. Part-time arrangements may or may not include benefits like paid time off or health insurance.

• Full-time (40+ hrs/week): Higher hourly rate, more experienced nannies, usually includes benefits.
• Part-time (<30 hrs/week): Slightly lower hourly rate, may be a student or someone with other jobs, benefits vary.
• Summer only / temporary: Similar hourly rates to regular nannies, but no long-term commitment or benefits.

Overtime rules for nannies

Overtime is one of the most commonly misunderstood aspects of nanny pay. Under the federal Fair Labor Standards Act (FLSA), most nannies are entitled to overtime pay at 1.5 times their regular rate for all hours worked over 40 in a week.

Key rules to know:

• Live-out nannies: Overtime required after 40 hours/week at 1.5x regular rate. No exceptions.
• Live-in nannies: Exempt from federal overtime, but some states (California, New York, Massachusetts, and others) require overtime for live-in domestic workers. Always check your state's rules.
• State rules may be stricter: Some states require overtime after 8 hours in a day (California, Alaska) or on the 7th consecutive day of work.
• Salary does not eliminate overtime: Even if you pay a salary, you still need to track hours and pay overtime for hours over 40.
• "Off the clock" work counts: If your nanny is expected to respond to texts, plan activities, or do other work outside their scheduled hours, that time counts toward their hours worked.

The "nanny tax" is not a single tax — it is the collective name for all the payroll tax responsibilities that come with hiring a household employee. Many families are surprised to learn that hiring a nanny makes them an employer in the eyes of the IRS, with all the filing and payment obligations that entails.

While it may seem tempting to pay cash "under the table," doing so exposes both you and your nanny to significant risk: back taxes, penalties, interest, and even legal trouble. Legally employing your nanny is the right choice — and it is not as complicated as it sounds, especially with payroll services that handle most of the work.

When you're considered a household employer

You become a household employer in the eyes of the IRS if you pay any household employee (including a nanny, housekeeper, or babysitter) $2,700 or more in a calendar year (2026 threshold). This is the Social Security and Medicare (FICA) threshold. Once you cross it, you are responsible for FICA taxes on all wages paid that year.

For federal unemployment tax (FUTA), the threshold is $1,000 or more in any calendar quarter. State unemployment thresholds vary — some match the federal $1,000, others are lower.

What taxes you're responsible for as an employer

As a household employer, you have two types of tax responsibilities: taxes you pay as the employer, and taxes you withhold from the nanny's paycheck and remit to the government on their behalf.

Employer-paid taxes:

• Social Security (6.2%): On wages up to the Social Security wage base ($168,600 in 2026)
• Medicare (1.45%): On all wages — no wage cap
• FUTA (up to 6%): On first $7,000 of wages; effectively 0.6% with the SUTA credit
• SUTA: Varies by state and your experience rating

Employee-paid taxes (you withhold and remit):

• Federal Income Tax (FIT): Based on the employee's W-4. Learn more about what FIT means on a paycheck.
• Social Security (6.2%): Employee's half — matched by employer
• Medicare (1.45%): Employee's half — matched by employer
• State Income Tax: If your state has one
• Additional Medicare Tax (0.9%): On wages over $200,000 (single) — employee only

How to handle withholding and filing

Setting up nanny payroll involves several steps. Here is a high-level overview of the process:

1. Get an EIN: Apply for an Employer Identification Number from the IRS. It is free and takes minutes online.
2. Have your nanny complete forms: They will need to fill out a W-4 (federal withholding), state withholding form (if applicable), and an I-9 (employment eligibility verification).
3. Register with your state: Register as a household employer with your state's labor department and tax agency for unemployment and state withholding.
4. Run payroll each pay period: Calculate gross wages, withhold employee taxes, and write a paycheck for net pay. Use our paycheck calculator to estimate take-home pay.
5. File and pay taxes: Remit withheld taxes and employer taxes to the IRS and state on the required schedule (quarterly is common for household employers).
6. Provide a W-2: At the end of the year, give your nanny a W-2 form and file a W-2 copy with the Social Security Administration.
7. File Schedule H: Report household employment taxes on Schedule H with your personal Form 1040.

Many families use a nanny payroll service to handle all of this — they calculate payroll, file taxes, provide W-2s, and keep you compliant. The cost is typically $50–$100 per month, which is worth it for most families who would rather spend their time on other things.

Want to see how payroll taxes affect take-home pay? Try our tax withholding guide to understand exactly how much comes out of a paycheck and why.

Nanny care is a significant expense — but there are legitimate ways to reduce the cost. Between tax-advantaged accounts, tax credits, and creative arrangements, many families are able to make nanny care more affordable than the sticker price suggests.

Dependent Care FSA

If your employer offers a Dependent Care FSA (DCFSA), this is one of the most valuable tax breaks available for child care. You can set aside up to $7,500 per year (2026 limit) in pre-tax dollars to pay for nanny expenses. Because the money comes out before federal income tax, Social Security, and Medicare, the typical family saves 22–32% on every dollar contributed.

For example, if you contribute the full $7,500 and you are in the 22% federal bracket, you save about $1,650 in federal income tax plus about $574 in FICA taxes — roughly $2,224 per year in total savings. That is like getting a 30% discount on your first $7,500 of nanny costs.

The catch: you need a qualifying child under age 13 (or a disabled dependent), and the care must be necessary so you can work. You also need to have earned income, and your spouse must also have earned income (unless they are a full-time student or disabled).

Child and Dependent Care Tax Credit

The Child and Dependent Care Tax Credit (CDCC) lets you claim a credit on your tax return for a percentage of child care expenses. The credit covers 20–35% of up to $3,000 in expenses for one child or $6,000 for two or more children. The percentage depends on your income — lower earners get a higher percentage.

You generally cannot claim the same expenses for both the Dependent Care FSA and the CDCC. If you max out your FSA at $7,500, you have already used up more than the $6,000 expense limit for two children, so there is no leftover to claim the credit on. But if your FSA election is lower than the credit's expense limit, you may be able to claim the credit on expenses above your FSA amount.

Nanny share arrangements

A nanny share is when two or more families share one nanny, splitting the cost. The nanny watches all the children at the same time (usually at one family's home, alternating, or in a dedicated space). Each family pays less than they would for a solo nanny, and the nanny earns more than they would working for just one family — a win-win.

• Cost savings: Each family typically pays 60–75% of a solo nanny rate, saving 25–40% compared to hiring alone.
• Social benefits: Kids get built-in playmates and social interaction.
• Logistics: Requires coordination between families on schedule, sick days, discipline approach, and payment. A written agreement between all parties is essential.
• Tax implications: Each family is technically a separate employer, so each has their own tax responsibilities. Alternatively, one family can be the employer and the other pays them their share — but this gets complicated legally.

Part-time or shared care

If full-time nanny care is out of budget, consider a part-time nanny combined with other care options like daycare, preschool, or family care. Many families use a nanny for 20–30 hours per week to cover the trickiest parts of the schedule — early mornings, after school, or days when daycare is closed — and use cheaper options for the rest.

Other cost-saving ideas include:

• Flexible scheduling: Some nannies offer lower rates for less desirable shifts or split shifts.
• Au pair: An au pair program can be cheaper than a full-time nanny, especially for families with multiple children, though the cultural exchange aspect is the main draw.
• Long-term commitment: Many nannies will negotiate a slightly lower rate in exchange for a guaranteed one-year contract and steady hours.
• Negotiate benefits instead of pay: If pay is your main constraint, you might offer fewer paid days off or no health stipend in exchange for a lower hourly rate.

Whether you are hiring a nanny and want to budget for the full cost, or you are a nanny wanting to know your take-home pay, these tools use the same 2026 payroll engine to give you accurate numbers.