True Cost of a Nanny in Texas (2026)

Calculate true nanny costs in Texas. No state income tax. Federal minimum wage, FLSA overtime (live-in exempt), SUI 2.7% on first $9,000, voluntary workers comp, and Texas Payday Law (pay at least twice a month).

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 Texas?

Non–live-in nannies in Texas must be paid 1.5x their regular hourly rate for hours over 40 in a week. Live-in nannies are exempt from overtime under the federal FLSA; you pay only their agreed rate for all hours worked. Texas has no daily overtime—only weekly.

What is the minimum wage for a nanny in Texas?

As of January 1, 2026, the minimum wage for a nanny in Texas is the federal rate of $7.25 per hour. Texas has no state minimum above federal, and state law preempts cities (e.g., Austin, San Antonio) from setting higher private-sector minimum wages.

Is there state income tax on nanny wages in Texas?

No. Texas has no state income tax. You do not withhold state income tax from your nanny's pay. You still withhold federal income tax and FICA (Social Security and Medicare) as required by federal law.

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

You become liable for Texas unemployment insurance when you pay your household employee more than $1000 in cash wages in a calendar quarter. The rate for new employers is 2.7% on the first $9000 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 Texas?

Workers' compensation is voluntary for household employers in Texas. If you do not carry coverage, you are a "non-subscriber" and must notify your employee and file DWC Form-005. Going without coverage exposes you to unlimited liability if your nanny is injured on the job; coverage is highly recommended.

How often must I pay my nanny in Texas?

Under the Texas Payday Law, you must pay at least twice a month (semi-monthly) or on a bi-weekly schedule. At least twice a month (semi-monthly) or bi-weekly. Texas Payday Law.Texas Payday Law.

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

In Texas, 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 Texas?

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. Texas has no state income tax, so there is no separate state credit for nanny wages.

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 non–live-in nannies, tracking weekly hours ensures correct overtime. We offer a Total Nanny Pay & Time Tracker Solution that can produce compliant pay stubs for Texas.

How to Calculate Texas Nanny Overtime

Texas follows federal FLSA rules. There is no daily overtime.

  • Non–live-in: Overtime = (Total Weekly Hours − 40) × (1.5 × Hourly Rate)
  • Live-in: Exempt from overtime under federal FLSA. Pay the agreed rate for all hours worked; no overtime premium required.
Voluntary for household employers. 'Non-subscribers' must notify employees and file DWC Form-005. Highly recommended to limit liability.

The Complete 2026 Texas Nanny Tax Guide

Hiring a nanny in Texas is simpler than in many other states: there is no state income tax, and wage and hour rules follow the federal Fair Labor Standards Act (FLSA). As a Texas household employer, you must pay at least the federal minimum wage, comply with federal overtime rules for non–live-in nannies, meet the Texas Payday Law (pay at least twice a month), and consider voluntary workers' compensation to limit liability. This guide and the Texas Nanny Pay Calculator above use only verified data from official sources so you can budget accurately and stay compliant.

Texas Nanny Minimum Wage: Federal Rate Only

As of January 1, 2026, the minimum wage for a nanny in Texas is the federal rate of $7.25 per hour. Texas does not set a state minimum above federal, and state law preempts cities—including Austin, San Antonio, Dallas, and Houston—from setting higher minimum wages for private employers. So no matter where in Texas you live, the same minimum applies. You may always pay more than the minimum; the calculator accepts any hourly rate at or above this floor.

Wage and Hour Laws: FLSA and the Live-In Exemption

Texas follows federal FLSA standards for domestic workers. That means:

  • Non–live-in nannies: You must pay 1.5 times the regular rate for hours over 40 in a workweek. There is no daily overtime in Texas.
  • Live-in nannies: Under the federal FLSA live-in exemption, they are exempt from overtime. You pay their agreed wage for all hours worked; you do not add an overtime premium. This is a major difference from states like California or New York, where live-in domestic workers often get overtime after a certain weekly threshold.

Use the calculator's "Is this a Live-In Nanny?" toggle so it applies the correct rules. For non–live-in, enter your schedule; the calculator applies weekly overtime automatically.

Taxes: No State Income Tax

Texas has zero state income tax. You do not withhold state income tax from your nanny's pay. The only state employment tax for household employers is Texas unemployment insurance (SUI).

When You Owe SUI

You become liable for Texas unemployment when you pay your household employee more than $ in cash wages in a calendar quarter. New employers typically pay 2.7% on the first $9000 of wages per employee per year. You pay this as the employer; it is not deducted from the nanny's paycheck.

Federal Taxes Still Apply

You must still withhold federal income tax (based on the nanny's Form W-4) and FICA (Social Security and Medicare) from their pay, and you pay the employer share of FICA plus FUTA (federal unemployment) on the first $7,000 of wages. The calculator above estimates all of these so you see true cost vs. take-home pay.

Workers' Compensation: Voluntary but Recommended

In Texas, workers' compensation is voluntary for household employers. If you do not carry coverage, you are a "non-subscriber." Non-subscribers must notify employees in writing and file DWC Form-005 with the Texas Department of Insurance, Division of Workers' Compensation. Choosing not to carry coverage means you have no statutory cap on liability if your nanny is injured on the job; a lawsuit could expose your personal assets. Many household employers add an endorsement to their homeowner's or renters insurance or purchase a separate policy. Coverage is highly recommended to limit liability.

Texas Payday Law: Pay at Least Twice a Month

Under the Texas Payday Law, you must pay your nanny at least twice a month (semi-monthly) or on a bi-weekly basis. At least twice a month (semi-monthly) or bi-weekly. Texas Payday Law. Pay stubs should show hours worked, rate(s) of pay, gross and net pay, and all deductions so both you and your nanny have a clear record.

Live-In Room and Board Deductions

If your nanny is live-in, you may deduct reasonable room and board from wages under Texas Labor Code § 62.053, which follows federal FLSA "reasonable cost" rules. Texas does not publish fixed dollar caps; deductions must be authorized in writing and must reflect the reasonable value of the lodging and meals provided. The calculator applies federal guidance when you enter a room and board amount for a live-in nanny.

The "Nanny Tax" Checklist for Texas Employers

  • Obtain a Federal EIN (FEIN) from the IRS.
  • Have your nanny complete Form I-9 and Form W-4.
  • Register with the Texas Workforce Commission for unemployment tax if you will pay more than $ in a quarter.
  • Pay at least twice a month and provide pay stubs with each payment.
  • If you do not carry workers' comp, notify your nanny and file DWC Form-005 as required.
  • File Schedule H with your federal 1040 tax return.

Nanny vs. Au Pair in Texas

In the US, a nanny is a household employee: you pay at least the applicable minimum wage, apply overtime rules where required, and withhold and pay FICA, FUTA, and state unemployment (SUI in Texas). 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 Texas Nanny Pay Calculator

Use the calculator above to estimate your total cost and your nanny's take-home pay. Enter an hourly rate at or above $7.25 (federal minimum). Choose whether the nanny is live-in (no overtime) or not (overtime after 40 hours/week). The calculator applies no state income tax, estimates SUI at 2.7% on the first $9000, and shows FICA and FUTA 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 Texas Workforce Commission, Texas Labor Code, IRS publications, and FLSA guidance for 2026. Data last updated: 2026-02-01. Laws and rates may change; confirm with the TWC or a qualified tax or employment professional for your situation.

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