All states · Updated for 2026

How to pay a nanny in Tennessee

Everything a Tennessee family has to do to pay a nanny, housekeeper or caregiver legally: the taxes, the registrations, the forms, and the deadlines. CareTab does the math and reminds you; you keep paying them the way you already do.

The short version

Federal: withhold 7.65% Social Security and Medicare from their pay and match it; pay FUTA (0.6% of the first $7,000.00); file Schedule H with your 1040; give them a W-2 by Jan 31.
Tennessee unemployment tax: register with Tennessee Department of Labor & Workforce Development after $1,000 or more in cash wages for domestic service in any calendar quarter (current or preceding year); new employers pay 2.70% on the first $7,000.00 of wages; file LB-0456 / LB-0851 (TNPAWS) quarterly.
Tennessee income tax: none.
New hire report: within 20 days of their start date.
Minimum wage: $7.25/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
Paid sick leave: not mandated by the state.
Workers' compensation: Domestic servants are excluded from the Workers' Compensation Law (Tenn. Code Ann. § 50-6-106(3)); coverage may be purchased voluntarily.

Step by step

Get an EIN from the IRS (free, online, 10 minutes).
Have your nanny complete Form I-9 and, if they want federal income tax withheld, a W-4.
File the Tennessee new-hire report within 20 days at the state site.
Register with Tennessee Department of Labor & Workforce Development once you cross $1,000 or more in cash wages for domestic service in any calendar quarter (current or preceding year) (registration).
Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65%, give a pay stub.
Each quarter: file LB-0456 / LB-0851 (TNPAWS). Last day of the month after each quarter. New employers pay 2.7% until they have been liable for 36 consecutive months ending Dec 31; experience rates are set each January and July.
January: W-2 to your nanny, W-2/W-3 to the SSA. April: Schedule H with your 1040.

Run your numbers

Use the free Tennessee nanny tax calculator: take-home pay, what you withhold, and your total cost including employer taxes.

Frequently asked

Do I have to pay nanny taxes in Tennessee?

Yes. Once you pay a household employee $3,000.00 or more in a year you owe Social Security and Medicare (7.65% withheld from your nanny and 7.65% from you), and FUTA once you pay $1,000.00 in any quarter. Tennessee unemployment tax applies after $1,000 or more in cash wages for domestic service in any calendar quarter (current or preceding year).

Do I withhold Tennessee income tax from my nanny?

Tennessee has no state income tax, so there is nothing to withhold.

What forms do I file in Tennessee?

LB-0456 / LB-0851 (TNPAWS) quarterly with Tennessee Department of Labor & Workforce Development, a W-2 for your nanny and W-3 to the SSA by Jan 31, and Schedule H with your federal return.

Does my nanny get overtime in Tennessee?

Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in Tennessee. Tennessee has no state minimum wage or overtime law; the FLSA applies.

What is the minimum wage for a nanny in Tennessee?

$7.25 per hour in 2026.

Pay your Tennessee nanny legally for $14.99/month

Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with LB-0456 / LB-0851 (TNPAWS) pre-filled. 14-day free trial, no card needed.

Start free trial

Sources: Tennessee Dept. of Labor & Workforce Development — How is my premium rate determined? (new employer premium rate 2.7% until 36 consecutive months of liability; $7,000 taxable wage base); Tennessee Dept. of Labor & Workforce Development — Who is liable for unemployment insurance premiums? (domestic employers: $1,000 in cash wages in any calendar quarter of the current or preceding year); Tennessee Dept. of Labor & Workforce Development — When are quarterly reports due? (last day of the month following the quarter); Tennessee Dept. of Labor & Workforce Development — UI Tax Rates (Premium Rate Table 6 in effect July–December 2026); Tenn. Code Ann. § 50-6-106(3) — Workers' Compensation Law does not apply to domestic servants. Rules for 2026. General information, not tax or legal advice.