True Cost of a Nanny in Pennsylvania (2026)

Calculate the full cost of hiring a nanny in Pennsylvania, including FICA, FUTA, state unemployment tax, overtime, and room & board deductions for 2026.

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

Is My Nanny Tax Deductible in Pennsylvania?

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.

The "Hidden" Costs of Hiring a Nanny in Pennsylvania

The hourly rate you agree upon with your nanny is just the starting point. As a household employer, you are responsible for employer-side FICA (Social Security and Medicare), federal unemployment (FUTA), and state unemployment (SUTA) taxes. Overtime rules vary by state and can differ for live-in employees.

In Pennsylvania, overtime and minimum wage rules depend on state law. This calculator uses your selected state's rules to estimate gross pay, employer taxes, and the nanny's take-home pay after federal and state income tax.

Live-in vs. Live-out Nanny Costs in Pennsylvania

A common question is whether it's cheaper to have a nanny live in your home. You can often deduct a reasonable amount for room and board from the nanny's wages, but the rules and caps vary by state. This deduction reduces the cash you pay the nanny; it is not rental income for you.

In Pennsylvania, the maximum allowable deduction for room and board is subject to state and federal rules. This calculator caps any entered deduction at the applicable legal limit for your state to ensure compliance.

What is "Room and Board"?

For a live-in caregiver, "Room and Board" means the lodging and meals you provide. "Room" typically means a private, furnished bedroom with access to common areas. "Board" refers to meals. Federal law allows a "reasonable cost" credit under FLSA Section 3(m); many states set stricter caps. The deduction reduces wages, not a source of rental income for the family.

How Can I Keep Track of My Nanny's Hours?

Accurately tracking your nanny's hours is required for correct payroll and overtime. Use timesheets, spreadsheets, or time-tracking apps so both you and your nanny agree on hours before each pay period.

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.

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.

Data Sources and Last Modified

Tax rates and wage bases are from the IRS, Tax Foundation, and state tax agencies for 2026. Labor rules come from the FLSA, IRS Publication 926, and state departments of labor. Data last updated: 2026-02-01. This calculator is for estimation only.