Household employer tax basics for 2026
If you pay a household employee, such as a nanny, housekeeper or house manager, you may owe federal employment taxes. For 2026, Social Security and Medicare taxes apply once you pay one employee $3,000 or more in cash wages, and federal unemployment tax (FUTA) applies if you pay $1,000 or more in cash wages in any calendar quarter. You report them on Schedule H with your Form 1040 and give your employee a Form W-2. Free for families through 2026. Candidates never pay.
Thresholds at a glance (2026 wages)
| Tax | When it applies | Who pays | Where reported |
|---|---|---|---|
| Social Security and Medicare (FICA) | Cash wages to any one household employee of $3,000 or more in 2026 | Employer and employee each pay 7.65% (15.3% in total). Employer may choose to pay the employee's share | Schedule H and Form W-2 |
| Federal unemployment tax (FUTA) | Total cash wages to all household employees of $1,000 or more in any calendar quarter of 2025 or 2026 | Employer only. 6.0% on the first $7,000 of each employee's wages, with a credit of up to 5.4% for state unemployment tax paid on time, so the net can be 0.6% | Schedule H |
| Federal income tax withholding | Not required. Withhold only if the employee asks and you agree (Form W-4) | Employee | Form W-2 |
Source: IRS Publication 926 (for 2026), https://www.irs.gov/publications/p926
Forms and dates (2026 wages)
- Employer identification number (EIN): get one free from the IRS. https://www.irs.gov/ein
- Form W-2 and W-3: give your employee their copies and file Copy A with the Social Security Administration by February 1, 2027. You do not send a W-2 to the SSA if Social Security and Medicare wages were under $3,000 and you did not withhold federal income tax. https://www.irs.gov/instructions/iw2w3
- Schedule H (Form 1040): file with your 2026 federal income tax return by April 15, 2027. https://www.irs.gov/instructions/i1040sh
- Pay as you go: household employment taxes are paid with your own return, so you may want to make estimated payments or ask your own employer to withhold more.
- Form I-9: keep a completed Form I-9 for each employee.
- Records: keep payroll records and copies of forms.
Who is an employee, and who is not
- A nanny, housekeeper, house manager, private chef or driver who works in your home under your direction is generally a household employee, even if part-time. Calling someone an independent contractor does not change that if you control what they do and how. IRS Pub 926 has the test.
- Some people you pay are not counted: your spouse, your child under 21 and your parent (with exceptions), and employees under 18 in some cases. See Pub 926.
Florida
- Florida has no state personal income tax, so there is no state income tax withholding for household employees.
- Reemployment tax (Florida's unemployment tax) is run by the Florida Department of Revenue. A private home that paid $1,000 in cash wages in a quarter for domestic services is liable. New employers pay an initial rate of 2.7% on the first $7,000 of each employee's wages in a calendar year, and employees do not pay it. Reports are due the month after each quarter. Household employers who meet the Department's conditions may apply to file annually (Form RT-7A). https://floridarevenue.com/taxes/taxesfees/Pages/reemployment.aspx and https://floridarevenue.com/Forms_library/current/rt7a.pdf
- Minimum wage: FloridaCommerce (formerly DEO) lists $15.00 per hour from September 30, 2026. https://floridajobs.org/florida-minimum-wage
- Reemployment benefits for workers are handled by FloridaCommerce.
Credits that may help the family
The child and dependent care credit may apply when you pay for care so you can work. See IRS Publication 503. https://www.irs.gov/publications/p503
Sources
IRS Publication 926 (2026); IRS Instructions for Schedule H; IRS Instructions for Forms W-2 and W-3; Florida Department of Revenue reemployment tax pages; FloridaCommerce minimum wage page.
Not legal or tax advice.
This page is general information for families who hire household staff directly. It is not legal or tax advice, and it may not fit your situation. Ask a qualified adviser, or contact the government offices linked below, for your own facts. HomeHire is not the employer and does not run payroll or hold wages.
Related guides
Explore the US Salary Guide for national, state, and metro pay context.
Frequently asked questions
What is the nanny tax?
It is the common name for the employment taxes a family may owe when paying a household employee: Social Security and Medicare tax, and federal and state unemployment tax. Households report them on Schedule H with their Form 1040.
When do I have to pay Social Security and Medicare tax for a nanny in 2026?
For 2026 wages, when you pay any one household employee $3,000 or more in cash wages. The rate is 7.65% each for employer and employee, 15.3% in total.
When does federal unemployment tax apply to household employees?
When you pay total cash wages of $1,000 or more to all household employees in any calendar quarter of 2025 or 2026. The tax is paid by the employer.
Do I give my household employee a W-2?
Generally yes. For 2026 wages, give the employee their copies and file Copy A with Form W-3 at the Social Security Administration by February 1, 2027, unless the exception in the IRS instructions applies.
What is Schedule H?
Schedule H is the form you file with your Form 1040 to report household employment taxes. For 2026 wages it is due with your return, by April 15, 2027.
Do I have to pay Florida reemployment tax for a household employee?
A private home that paid $1,000 in cash wages in a quarter for domestic services is liable. The Florida Department of Revenue runs the tax, and workers do not pay it. See the Department's pages for rates, filing and the annual filing option.
Is a nanny an employee or an independent contractor?
A household worker who works in your home under your direction is generally an employee. Call it what you like, the IRS looks at who controls the work. See IRS Publication 926 or ask an adviser.
Does HomeHire file or pay these taxes for me?
No. The family is the employer and handles payroll and tax filing. HomeHire does not run payroll or hold wages.
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