The average nanny salary in the U.S. starts around $22.26 an hour, based on rates nannies reported on Care.com, last updated in October 2026. Full time, that’s about $46,300 a year before any employer taxes.
A close friend of mine went back to work after her second baby and spent a full weekend with a calculator trying to decide between daycare and a nanny. She called me at 10 p.m. on Sunday and said, “Nobody tells you the hourly rate is only the beginning.” She was right. So let’s go through what nannies earn right now, what a nanny costs a family once taxes come in, and the math that helped her decide.
The average nanny salary right now
Nannies set their own rates, so the best national picture comes from where they post them. Care.com’s nanny cost data, updated in October 2026, shows:
- Average starting rate: about $22.26 an hour nationwide.
- Average top rate: about $27.45 an hour for more experienced nannies.
- Average weekly nanny cost: $870 in Care.com’s 2026 cost of care report, up 5% from $827. That report assumed 40 hours a week.
- Toddler care: the same report put a nanny for one toddler at $936 a week, and for two toddlers at $952.
That small gap between one toddler and two is the part that surprised my friend. A daycare charges per child. A nanny mostly charges per family.
On a yearly basis, $22.26 an hour times 40 hours times 52 weeks comes to roughly $46,300. At the top rate of $27.45, it’s about $57,100.
Her hourly rate is her paycheck. Your cost as the employer is a bigger number, and the gap is where budgets break.
What pushes the average nanny salary up or down
The quotes my friend got ranged from $19 to $30 an hour. These were the main reasons:
- Location. Big metro areas pay more. Rates can differ by several dollars an hour between neighboring towns.
- Number and ages of kids. Infants and multiple children usually raise the rate, though not by as much as a second daycare spot would.
- Experience and training. Early childhood education, CPR certification and years with one family all push pay up.
- Extra duties. Driving, cooking for the family, laundry and homework help are often priced in.
- Live-in or live-out. Live-in arrangements change the pay structure because room and board are part of the deal.
- Guaranteed hours. Many nannies ask for a guaranteed weekly paycheck, even if the family takes a week off.
That last one caught my friend off guard. When her family went to her in-laws’ for a week in July, she still paid the nanny for 40 hours. That’s standard in a lot of nanny agreements, and it’s fair. A nanny can’t pick up another family for one week.
The nanny taxes most families don’t budget for
The taxes are where the real cost shows up. If you pay one household employee $3,000 or more in cash wages in 2026, the IRS says you generally need to handle Social Security and Medicare taxes. IRS Publication 926, the household employer’s guide, lays out the basics:
- Social Security: 6.2% from you, and 6.2% withheld from the nanny’s pay.
- Medicare: 1.45% from you, and 1.45% withheld from the nanny’s pay.
- Federal unemployment (FUTA): applies if you pay household employees $1,000 or more in any calendar quarter. The rate is 6% on the first $7,000 of wages, and a credit for state unemployment tax usually lowers it a lot.
- State taxes: most states have their own unemployment tax, and some have more.
You’ll also need to give your nanny a W-2 and report the taxes on your own return. It sounds like a lot. My friend uses a payroll service for about the cost of one takeout dinner a month, and she says it’s the best money she spends.
Paying “under the table” can seem simpler, but it leaves your nanny without Social Security credit and can leave you with back taxes and penalties later. This is a good place to talk to a tax professional if you’re unsure.
What a full-time nanny costs: a worked example
Here’s an example of a year’s cost at the national average starting rate. The tax lines use the federal rates from Publication 926; state taxes vary, so they’re left out.
| Line in this example | How it’s figured | Yearly cost | Monthly cost |
|---|---|---|---|
| Nanny’s gross pay | $22.26 x 40 hours x 52 weeks | $46,301 | $3,858 |
| Employer Social Security | 6.2% of gross pay | $2,871 | $239 |
| Employer Medicare | 1.45% of gross pay | $671 | $56 |
| Federal unemployment (FUTA) | About 0.6% of the first $7,000, with a full state credit | $42 | $4 |
| Total before state taxes and extras | Sum of the lines above | $49,885 | $4,157 |
So the average nanny salary of about $46,300 turned into roughly $49,900 in this example, before state taxes. If you’re budgeting off the hourly rate alone, you’d be about $300 short every single month.
How my friend decided between a nanny and daycare
This is the exact process she used. It took her one weekend and saved a lot of second-guessing:
- Get two real daycare quotes. Not averages. Call the two places you’d use and ask for the monthly price for each child.
- Get two real nanny quotes. Ask about the hourly rate, guaranteed hours and paid time off.
- Add employer taxes to the nanny number. About 7.65% for Social Security and Medicare, plus unemployment taxes.
- Count your kids. Two kids in daycare is two tuitions. One nanny for two kids is mostly one salary.
- Price your time. Daycare pickup by 5:30 p.m. and sick days at home cost something too, especially with a long commute.
- Check tax breaks. A dependent care FSA at work or the child and dependent care credit can apply to either option.
With two kids under three, the nanny came out about $600 a month more than two daycare spots in her town. For her family, the flexibility and fewer sick days were worth it. For a family with one child, daycare usually wins on price.
Cozy tip: Set up a separate checking account just for childcare and move the full monthly cost into it, taxes included, every payday. When the nanny’s paycheck and the quarterly tax payment come out, the money is already sitting there. The free printable budget template has a fixed-bills page that keeps this line from blending into everything else.
Ways families lower the cost of a nanny
- Nanny share. Two families split one nanny, and each pays less than a full salary while the nanny earns more overall.
- Part-time schedule. If grandparents or a partner can cover a day or two, a 24- or 30-hour week changes the math a lot.
- Dependent care FSA. If your employer offers one, you can pay some childcare costs with pre-tax money.
- Clear written agreement. Spelling out hours, duties, raises and time off up front avoids expensive misunderstandings later.
If you only need occasional help, the average babysitting rate is a better benchmark than a salary. And if you’re comparing options for full-time care, my post on daycare cost pairs with this one.
What the average nanny salary looks like on the nanny’s paycheck
It helps to see the other side, too. When my friend hired her nanny, they sat down together and walked through what a paycheck would look like. It made the conversation about pay a lot easier.
At the average nanny salary of about $22.26 an hour, a 40-hour week is $890 before anything comes out. Under the Publication 926 rules, 6.2% for Social Security and 1.45% for Medicare are withheld from the nanny’s side, which is about $68 a week. Federal income tax withholding is only required if you both agree to it, though many nannies ask for it so they don’t owe a big bill in April.
That’s why many nannies ask whether a quoted rate is “gross” or “net.” Gross means before those withholdings. Net means take-home pay, and if you agree to a net rate, your actual cost is higher than it looks.
- Agree on gross pay in writing. It keeps the math clear for both of you.
- Talk about raises up front. Many families revisit pay once a year, often around the start date.
- Spell out paid time off and holidays. Decide how many paid days off and which holidays are included before the first week.
My friend said the paycheck conversation was the moment the arrangement started to feel like a real working relationship instead of a favor. It also meant there were no surprises for anyone when the first W-2 showed up.
Common mistakes when budgeting for an average nanny salary
- Budgeting the hourly rate only. Employer taxes added about $3,600 a year in the example above, and that’s before state taxes.
- Forgetting guaranteed hours. Many nannies are paid for their regular week even when your family travels.
- Skipping the written agreement. Without one, overtime, sick days and holidays turn into tense conversations instead of line items.
For more numbers on what families spend, see my budgeting statistics page, or browse the budgeting section to build the rest of your plan around childcare.
Frequently Asked Questions
How much does a nanny make per hour?
Care.com’s October 2026 data puts the national average starting rate at about $22.26 an hour, with experienced nannies averaging up to about $27.45. Local rates can be higher or lower.
How much does a full-time nanny cost per week?
Care.com’s 2026 cost of care report put the average weekly nanny cost at $870 for about 40 hours. Employer taxes and any overtime add to that.
Do I have to pay taxes for a nanny?
Usually, yes, if you pay one household employee $3,000 or more in cash wages in 2026. The IRS says you’d then handle Social Security and Medicare taxes, and federal unemployment tax applies at $1,000 in any quarter. IRS Publication 926 has the rules.
Is a nanny cheaper than daycare?
For one child, daycare is usually cheaper. With two or more young kids, a nanny can come closer to the cost of multiple daycare spots, and a nanny share can make it cheaper still.
What is a nanny share?
A nanny share is when two families hire one nanny together, either at one home or alternating. Each family usually pays less than a full salary, and the nanny’s combined pay is often higher than one family alone would pay.
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