True Cost of a Nanny in California (2026)

Calculate true nanny costs in California. Includes 2026 SDI rates, 9/45 overtime rules, city-specific minimum wages (SF, LA, San Diego), and EDD registration steps

The Basics

The Schedule

Enter hours for each day worked. This will override Total Hours and Days per Week above for more precise overtime calculations.

Deductions & Options

Total Monthly Cost:$0.00

Frequently Asked Questions

What is the overtime rule for nannies in California?

In California, most nannies are considered "Personal Attendants." They must be paid 1.5x their regular hourly rate for any hours worked over 9 in a single day or over 45 in a single week.

Do I have to pay California SDI for my nanny?

You are required to withhold State Disability Insurance (SDI) from your nanny's wages if you pay them more than $750 in a calendar quarter. For 2026, the SDI rate is 1.3%. You do not pay this yourself; you deduct it from their paycheck and send it to the EDD.

What is the minimum wage for a nanny in California?

As of January 1, 2026, the California state minimum wage is $16.9/hour. However, many cities like San Francisco, Los Angeles, and West Hollywood have higher local minimum wages that you must follow.

Do I need workers' compensation for a nanny in California?

Yes, if your nanny works at least 52 hours and earns at least $100 in the 90 days before an injury. This is often covered by the liability portion of your homeowner's insurance, but you must verify this with your broker.

Is My Nanny an Independent Contractor? (1099 vs W-2)

In California, this is strictly regulated under Assembly Bill 5 (AB 5). It is virtually impossible to legally classify a nanny as an independent contractor (1099). You set the hours; you provide the home and supplies; you direct the work (childcare). Therefore, nannies are W-2 employees. Misclassifying a nanny as a 1099 contractor in California can lead to massive penalties from the EDD and the Labor Commissioner.

Are My Nanny Expenses Tax Deductible in California?

In the United States, you may be able to claim a tax credit for childcare expenses, including a nanny's wages, depending on your income and the Child and Dependent Care Credit (CDCC). The credit can be up to 35% of qualifying expenses, with limits based on the number of qualifying individuals. To claim the credit, you generally need the nanny's name, address, and Social Security Number (or Taxpayer Identification Number) on your return. Rules vary by state for additional credits or deductions.

How Do I Keep Track of My Nanny's Hours Worked?

There are numerous hour and time tracking apps available for both iOS and Android. Another method is to use a spreadsheet (Google Sheets or Microsoft Excel). We have created a spreadsheet specifically for this that even produces state-compliant pay stubs: the Total Nanny Pay & Time Tracker Solution.

How to Calculate California Nanny Overtime (Personal Attendant)

  • Step 1: Calculate Daily Overtime = (Hours worked today - 9) × (1.5 × Hourly Rate)
  • Step 2: Calculate Weekly Overtime = (Total Weekly Hours - 45) × (1.5 × Hourly Rate)
  • Step 3: Compare Step 1 total vs Step 2 total. Pay the greater of the two amounts.
  • Note: You do not add these two totals together. California law prohibits "pyramiding" (paying overtime twice for the same hour), so you simply pay the calculation that is more beneficial to the employee.

The Complete Guide to Paying a Nanny in California (2026)

Hiring a nanny in California involves more than just agreeing on an hourly rate. As a household employer in the Golden State, you are navigating some of the strictest and most complex labor laws in the country. Unlike most states that follow federal weekly overtime rules, California enforces daily overtime, mandatory disability insurance deductions, and city-specific minimum wages that can change drastically across county lines.

This guide works in tandem with our California Nanny Tax Calculator to help you budget accurately, stay compliant with the Domestic Worker Bill of Rights, and avoid costly audits from the EDD (Employment Development Department).

California Nanny Minimum Wage: It's Not Just One Number

One of the most common mistakes California families make is assuming the state minimum wage applies everywhere. While the California state minimum wage is $16.9 per hour (effective January 1, 2026), many cities have passed local ordinances requiring significantly higher pay.

If you live in these areas, you must pay the higher local rate. Common examples include:

  • West Hollywood: $20.25 per hour
  • San Francisco: $19.18 per hour
  • Berkeley: $19.18 per hour
  • Los Angeles: $17.87 per hour
  • San Diego: $17.75 per hour
  • San Jose: $17.75 per hour

Tip: Our calculator allows you to input your specific hourly rate. Always check your city's official labor standards office for the most current rate before making an offer.

Understanding California Overtime: The "9/45" Rule

Federal law requires overtime after 40 hours in a week. California law is different and depends on whether your nanny is classified as a "Personal Attendant."

What is a Personal Attendant?

Under California labor law, a Personal Attendant is a household employee who spends at least 80% of their time supervising, feeding, or dressing a child (or elderly person).

  • If your nanny is a Personal Attendant: They are entitled to overtime (1.5x pay) for hours worked over 9 hours in a day OR 45 hours in a week.
  • If your nanny is NOT a Personal Attendant (e.g., they spend >20% of time cleaning, cooking, or doing laundry): They fall under General Household Worker rules. They get overtime for hours over 8 in a day OR 40 in a week, and double time after 12 hours in a day.

Example of the Difference: Your nanny works three 12-hour days (36 hours total).

  • Federal Rule: No overtime (under 40 hours).
  • California Rule: 9 hours of overtime pay (3 hours per day × 3 days).

Note: Live-in nannies in California also have specific overtime protections. They generally must be paid overtime for hours exceeding 9 in a day and for the first 9 hours on the 6th and 7th consecutive workdays.

California Nanny Taxes: What You Must Withhold and Pay

California household employment taxes are administered by the EDD. Once you pay a household employee $750 or more in cash wages in a calendar quarter, you become a specialized employer.

1. State Disability Insurance (SDI)

Who pays: The Employee (Nanny). Your role: You must withhold this from their paycheck and remit it to the state. 2026 Rate: The rate is 1.3% of taxable wages. Unlike Social Security, there is no wage cap for SDI. Every dollar earned is subject to this tax. If you fail to withhold it, you (the employer) may end up paying it out of pocket.

2. Unemployment Insurance (UI)

Who pays: The Employer (You). Trigger: Liable if you pay $1000+ in cash wages in a calendar quarter. Rate: New employers typically start at 3.4% on the first $7000 of wages per employee per year.

3. Employment Training Tax (ETT)

Who pays: The Employer (You). Rate: 0.1% on the first $7000 of wages per employee per year.

Workers' Compensation is Mandatory

In California, it is mandatory if your nanny works at least 52 hours and earns at least $100 in the 90 days preceding an injury.

Action Item: Check your Homeowners or Renters Insurance policy. Many California policies automatically include a "comprehensive personal liability" endorsement that covers domestic employees. If yours doesn't, you must purchase a standalone policy from the State Compensation Insurance Fund (SCIF) or a private carrier. Failure to have this coverage is a criminal offense.

Required Paid Sick Leave

California's Healthy Workplaces, Healthy Families Act requires you to provide paid sick leave. Accrual: 1 hour of paid sick leave for every 30 hours worked. Usage: Employees can use up to 40 hours (or 5 days) of sick leave per year. Cities like Santa Monica, San Francisco, and Oakland have even stricter sick leave accrual caps.

The "Nanny Tax" Checklist for California Employers

  • Obtain IDs: Get a Federal EIN (FEIN) from the IRS and a State Employer Payroll Tax Account Number from the CA EDD (eServices for Business).
  • Verify Eligibility: Have your nanny complete Form I-9.
  • File New Hire Report: You must report your new employee to the California New Employee Registry within 20 days of their start date.
  • Issue Pay Stubs: California law (Labor Code 226) requires detailed pay stubs. You must list total hours worked, hourly rates, all deductions (SDI, FICA), and available sick leave balances every pay period.
  • Quarterly Filings: File the DE 3BHW (Quarterly Report of Wages and Withholdings) with the EDD.
  • Annual Filings: File Schedule H with your federal 1040 tax return.

Nanny vs. Au Pair: Understanding the Difference

In the US, a nanny is a household employee. You are the employer: you pay at least the applicable minimum wage, calculate overtime where required, and withhold and pay FICA, FUTA, and state unemployment taxes. You may need to file a W-2 and Schedule H. An au pair participates in the J-1 Au Pair program. They receive a stipend tied to minimum wage, plus room and board. The calculator supports both W-2 household employees and J-1 Au Pair arrangements.

How to Use the California Nanny Pay Calculator

Our calculator above simplifies these complex rules. Enter your hourly rate (ensure it meets your local city minimum). Input your schedule; the calculator automatically applies California's daily overtime logic (over 9 hours/day) if you select "Detailed Daily Schedule." We estimate the standard 7.65% FICA (Federal) and 1.3% SDI (State) withholdings to show you the "True Cost" vs. "Take Home Pay."

Data Sources and Last Modified

Rates and rules in this guide and in the calculator are drawn from the California Employment Development Department (EDD), California Department of Industrial Relations, and IRS publications for 2026. Data last updated: 2026-02-01. Laws and rates may change; confirm with the EDD or a qualified tax or employment professional for your situation.

This guide is for informational purposes and does not constitute legal or tax advice. California labor laws are subject to change. Consult with a qualified employment attorney or tax professional for your specific situation.