True Cost of a Nanny in Colorado (2026)

Calculate true nanny costs in Colorado. Denver/Boulder/Edgewater/state min wages, 12h daily and 40h weekly overtime (greater of), flat 4.4% income tax, FAMLI (employee 0.44%), SUI 3.05% on $30,600, workers comp if 40+ hrs or 5+ days.

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 Colorado?

In Colorado, nannies must be paid 1.5x their regular hourly rate for hours over 12 in a single day or over 40 in a single week. You pay the greater of the two amounts (no pyramiding). Both live-in and non–live-in nannies are entitled to overtime; Colorado does not follow the federal live-in exemption.

What is the minimum wage for a nanny in Colorado?

As of January 1, 2026, the Colorado state minimum wage is $15.16/hour for the remainder of the state. Denver, Boulder County, City of Boulder, and Edgewater have higher local minimum wages. You must pay the rate that applies to the location where the work is performed. Use the region selector in the calculator to apply the correct minimum.

Do I have to withhold FAMLI for my nanny in Colorado?

Yes. Colorado's Family and Medical Leave Insurance (FAMLI) program requires you to withhold the employee share from your nanny's wages. For household employers (small employers with fewer than 10 employees), the employee pays 0.44% of wages (capped at $184500 per year). You (the employer) pay 0%. You must still deduct and remit the employee's share to the state. Small employers (<10) exempt from employer share. Employee still pays 0.44%.

What is the state income tax for a nanny in Colorado?

Colorado has a flat state income tax of 4.4% on taxable income. You must withhold this from your nanny's pay along with federal income tax and FICA. Standard deductions apply; the calculator above estimates take-home pay after state and federal withholdings.

When do I owe Colorado unemployment (SUI) for my nanny?

You become liable for Colorado unemployment insurance when you pay your household employee more than the state quarterly threshold in a calendar quarter. The rate for new employers is typically 3.0% on the first $30600 of wages per employee per year. You pay this as the employer; it is not deducted from the nanny's paycheck.

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

Mandatory if working 40+ hours/week OR 5+ days/week.Mandatory if working 40+ hours/week OR 5+ days/week. Exempt only if working <40 hours AND <5 days. If your nanny works 5 days a week (even part-time) or 40 or more hours per week, coverage is mandatory. Below both thresholds it is voluntary. Check with your homeowner's insurance or a workers' comp carrier for household employees.

Can I deduct room and board for a live-in nanny in Colorado?

Under COMPS Order #41, you may deduct the reasonable cost or fair market value of lodging and meals, or use the state maximums: $100.0/week for a private room and $25.0/week for a shared room (if not using FMV). A written agreement is recommended.

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

In Colorado, a nanny is almost always a W-2 employee. You set the schedule, provide the workplace, and direct the childcare. The IRS and state treat household childcare workers as employees. Classifying a nanny as a 1099 contractor can lead to back taxes, penalties, and liability for unpaid employment taxes.

Are My Nanny Expenses Tax Deductible in Colorado?

You may be able to claim the federal Child and Dependent Care Credit (CDCC) for qualifying childcare expenses, including nanny wages. The credit can be up to 35% of qualifying expenses, subject to limits. You generally need the nanny's name, address, and SSN (or TIN) on your return. Colorado state income tax rules apply to your own return; the nanny's wages are deductible as childcare expenses where allowed.

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

Use a time-tracking app or a spreadsheet (e.g., Google Sheets or Excel) to record hours. For Colorado, accurate records are essential for overtime (daily over 12 hours and weekly over 40) and for determining workers' comp eligibility (40+ hours or 5+ days). We offer a Total Nanny Pay & Time Tracker Solution that can produce compliant pay stubs.

How to Calculate Colorado Nanny Overtime

  • Step 1: Calculate Daily Overtime = (Hours worked today − 12) × (1.5 × Hourly Rate)
  • Step 2: Calculate Weekly Overtime = (Total Weekly Hours − 40) × (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. Colorado (COMPS Order 38) prohibits pyramiding, so you pay the calculation that is more beneficial to the employee. Live-in nannies are not exempt from overtime in Colorado.

The 2026 Colorado Nanny Tax Guide

Hiring a nanny in Colorado means complying with state wage and hour rules, the FAMLI program, and workers' compensation requirements that depend on how many hours and days your nanny works. Denver's minimum wage is $19.29 per hour in 2026; the remainder of the state uses $15.16 per hour (effective January 1, 2026). Colorado enforces daily overtime after 12 hours and weekly overtime after 40 hours—and unlike federal law, live-in nannies are not exempt. You must withhold state income tax at a flat 4.4%, deduct the employee share of FAMLI (you pay 0% as a small employer), and pay state unemployment insurance. This guide and the Colorado Nanny Pay Calculator above use only verified data so you can budget accurately and stay compliant.

Wage and Hour Laws: Region-Based Minimum Wages and 12/40 Overtime

Colorado minimum wage depends on where the work is performed. As of January 1, 2026:

  • Denver (City & County): $19.29 per hour
  • Boulder County (Unincorporated): $16.82 per hour
  • City of Boulder: $16.82 per hour
  • Edgewater: $18.17 per hour
  • Remainder of State: $15.16 per hour

You must pay at least the rate that applies to the worksite. Under Colorado COMPS Order 38 (and related wage orders), domestic workers are entitled to overtime at 1.5 times the regular rate for hours over 12 in a day or over 40 in a week. You pay the greater of the daily-based total or the weekly-based total—you do not add them together (no pyramiding). Live-in nannies are not exempt from overtime in Colorado; the same rules apply. Use the calculator's region selector to apply the correct minimum wage and enter your schedule; the calculator applies the greater-of-daily-weekly overtime logic for all nannies.

FAMLI Tax: Mandatory Paid Leave Deduction

Colorado's Family and Medical Leave Insurance (FAMLI) program is mandatory. It funds paid family and medical leave for employees. For household employers (small employers with fewer than 10 employees), the default is: the employee pays 0.44% of wages, and the employer pays 0%. Wages are capped at $184500 per year for the FAMLI calculation. You must withhold the employee share from your nanny's paycheck and remit it to the state. Small employers (<10) exempt from employer share. Employee still pays 0.44%. The calculator above applies this rate and cap so you see the true take-home after FAMLI.

Taxes: Flat 4.4% Income Tax and SUI

Colorado has a flat state income tax of 4.4% on taxable income. You must withhold this from your nanny's pay along with federal income tax and FICA. Standard deductions apply; the calculator estimates take-home after all withholdings.

Unemployment Insurance (SUI): You become liable for Colorado unemployment when you pay your household employee more than the state quarterly threshold in a calendar quarter. New employers typically pay 3.0% on the first $30600 of wages per employee per year. You pay this as the employer; it is not deducted from the nanny's paycheck. Federal FICA and FUTA still apply.

Workers' Compensation: 40 Hours OR 5 Days Rule

In Colorado, workers' compensation for household employees is Exempt only if working <40 hours AND <5 days. If your nanny works 5 days a week—even if part-time—or 40 or more hours per week, coverage is mandatory. Only if they work fewer than 40 hours and fewer than 5 days per week is coverage voluntary. Check with your homeowner's insurance or a workers' comp carrier that offers household-employee coverage to confirm your situation.

Deductions: Lodging and Meals (COMPS Order #41)

If you provide room and board to a live-in nanny, you may deduct the reasonable cost or fair market value (FMV) from wages, or use the state maximums under COMPS Order #41: $100.0 per week for a private room and $25.0 per week for a shared room when not using FMV. A written agreement is recommended. The calculator allows you to enter room and board and applies the cap for your state.

The "Nanny Tax" Checklist for Colorado Employers

  • Obtain a Federal EIN (FEIN) from the IRS and register with the Colorado Department of Labor and Employment for unemployment and FAMLI if required.
  • Have your nanny complete Form I-9 and Form W-4.
  • Withhold state income tax (4.4% flat) and FAMLI (employee 0.44%, capped at $184500).
  • Obtain workers' compensation coverage if your nanny works 40+ hours/week or 5+ days/week.
  • Provide pay stubs with each payment showing hours, rate, gross and net pay, and all deductions (federal tax, state tax, FICA, FAMLI).
  • File Schedule H with your federal 1040 tax return.

Nanny vs. Au Pair in Colorado

In the US, a nanny is a household employee: you pay at least the applicable minimum wage (by region in Colorado), apply overtime rules (daily over 12 hours and weekly over 40, greater of), and withhold and pay FICA, FUTA, state income tax, FAMLI, and state unemployment. You file a W-2 and Schedule H. An au pair participates in the J-1 Au Pair program and receives a stipend plus room and board. The calculator supports both W-2 household employees and J-1 Au Pair arrangements.

How to Use the Colorado Nanny Pay Calculator

Use the calculator above to estimate your total cost and your nanny's take-home pay. Select your region (Denver, Boulder County, City of Boulder, Edgewater, or Remainder of State) so the correct minimum wage applies. Enter an hourly rate at or above that minimum. Choose whether the nanny is live-in or not; overtime after 12 hours in a day and 40 hours in a week applies to both, and the calculator pays the greater of daily vs. weekly OT. It applies state income tax at 4.4%, FAMLI at 0.44% (capped at $184500), and SUI at 3.0% on the first $30600, so you see 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 Colorado Department of Labor and Employment, Division of Labor Standards, FAMLI, and IRS publications for 2026. Data last updated: 2026-02-01. Laws and rates may change; confirm with the state or a qualified tax or employment professional for your situation.

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