All states · Updated for 2026
How to pay a nanny in Texas
Everything a Texas 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.
- Texas unemployment tax: register with Texas Workforce Commission after $1,000 or more in gross cash wages for domestic service in a calendar quarter; once liable, all wages from jan 1 of that year are taxable; new employers pay 2.70% on the first $9,000.00 of wages; file C-3 / C-4 (Unemployment Tax Services online) quarterly.
- Texas 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: Texas does not require private employers, including household employers, to carry workers' compensation coverage.
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 Texas new-hire report within 20 days at the state site.
- Register with Texas Workforce Commission once you cross $1,000 or more in gross cash wages for domestic service in a calendar quarter; once liable, all wages from jan 1 of that year are taxable (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65%, give a pay stub.
- Each quarter: file C-3 / C-4 (Unemployment Tax Services online). Last day of the month after each quarter. New employers pay the 2026 entry-level rate of 2.70% until they have four chargeable quarters. Domestic-only employers may elect annual reporting (Form C-20 filed by Dec 31 for the following year); the annual report and payment are then due Jan 31.
- 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 Texas 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 Texas?
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. Texas unemployment tax applies after $1,000 or more in gross cash wages for domestic service in a calendar quarter; once liable, all wages from jan 1 of that year are taxable.
Do I withhold Texas income tax from my nanny?
Texas has no state income tax, so there is nothing to withhold.
What forms do I file in Texas?
C-3 / C-4 (Unemployment Tax Services online) quarterly with Texas Workforce Commission, 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 Texas?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in Texas. Texas has no state overtime law for private employers; the FLSA applies.
What is the minimum wage for a nanny in Texas?
$7.25 per hour in 2026.
Pay your Texas nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with C-3 / C-4 (Unemployment Tax Services online) pre-filled. 14-day free trial, no card needed.
Start free trialSources: Texas Workforce Commission — Your Tax Rates (2026: minimum 0.32%, maximum 6.32%; $9,000 taxable wage base; rate components); Texas Workforce Commission — Tax Rates (entry-level rate for new employers: higher of industry average or 2.70%; 2.70% for all groups in 2026); Texas Workforce Commission — Domestic Employment ($1,000 in a calendar quarter liability test; Form C-20 annual reporting election). Rules for 2026. General information, not tax or legal advice.