Nanny Tax Desk

How to pay nanny taxes yourself in 2026

You can do it without a service: get a free EIN, hold back 7.65% of each paycheck, and pay the IRS during the year through estimated tax or more withholding at your own job. On $36,000 of pay that is $5,550 for the year, about $1,388 a quarter. Then the W-2 by February 1 and Schedule H in April.

Pay to your nanny in 2026
You owe on top of pay $0 employer taxes for 2026

$0to the IRS for the year: both halves and federal unemployment
$0a quarter, if you pay by estimated tax
See the year-end steps

General information from IRS Publication 926, not tax advice. Check with a tax professional for your household.

The steps, in order

  1. Get an EINFree from the IRS online, or with Form SS-4. Register with your state's unemployment agency too.
  2. Each paydayHold back 7.65% for Social Security and Medicare and keep a record.
  3. During the yearPay through Form 1040-ES estimated payments, or ask your own employer to withhold more federal income tax on your W-4. For 2026, the last estimated payment is due January 15, 2027.
  4. By February 1, 2027W-2 to your nanny, Copy A and Form W-3 to the Social Security Administration.
  5. By April 15, 2027Schedule H with your Form 1040. What you paid during the year counts toward it.

On $36,000: $4,464 Social Security and $1,044 Medicare for both halves, plus $42 federal unemployment, is $5,550. If you pay too little during the year, the IRS may charge an underpayment penalty; Publication 505 has the rules.

General information from IRS Publication 926 (2026), not tax advice. Check with a tax professional for your household.

Questions people ask next

Can I pay it all at once in April?

You can pay with Schedule H, but if you and your household owe too little during the year you may owe an underpayment penalty. Paying through estimated tax or withholding avoids that.

Is more withholding at my job easier?

Often. Raising withholding on your own W-4 spreads the payments through the year, with no vouchers to send.

Do I file quarterly federal returns?

No. Household employers report once a year on Schedule H, not on Form 941. Most states want quarterly unemployment returns.

When is a service worth it?

A service files for you and handles state returns. Household payroll services charge from about $100 to over $1,000 a year; doing it yourself costs time.

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