Do I need to make estimated tax payments for my nanny?
Updated November 6, 2026 · For 2026 · General information, not tax or legal advice
Household employment taxes are paid once a year with Schedule H, but the IRS still expects the money during the year. For a full-time nanny the employer share plus the withheld employee share is often $8,000 to $12,000, enough to trigger an underpayment penalty if it all lands in April.
The safe harbor
You avoid the penalty if, through withholding and estimated payments combined, you pay at least 90% of this year's total tax or 100% of last year's tax (110% if your adjusted gross income was over $150,000). Nanny taxes are part of "total tax," so a family that was fine last year can fall short the first year they hire.
Option 1: raise your own withholding
The simplest fix. Give your employer a new W-4 with an extra dollar amount on line 4(c). Divide the expected Schedule H total by the number of paychecks left in the year. Withholding counts as paid evenly across the year no matter when it happens, so this works even if you start in October.
Option 2: quarterly estimated payments
Pay with Form 1040-ES, online through IRS Direct Pay or your IRS account. 2026 due dates:
- April 15, 2026
- June 15, 2026
- September 15, 2026
- January 15, 2027
Estimated payments are credited when made, so a missed quarter can still leave a small penalty for that period.
How much to set aside
Roughly 10% of gross wages for the employer side (7.65% Social Security and Medicare, plus unemployment taxes) and another 7.65% that you withheld from your nanny and are holding until April. If you also withhold federal income tax for your nanny, add that. The calculator gives the exact annual figure for your state, and CareTab's dashboard tracks the running Schedule H balance so you know what to send each quarter.
Frequently asked
Can I just pay nanny taxes in April with my return?
You can, but household employment taxes count toward your required annual payment, so a large April balance can trigger an underpayment penalty unless you meet a safe harbor.
What are the 2026 estimated tax due dates?
April 15, June 15 and September 15, 2026, and January 15, 2027.
Is it easier to raise my own withholding?
Usually yes. Add an extra flat amount on line 4(c) of the W-4 at your job. Withholding is treated as paid evenly through the year, so it fixes an underpayment even late in the year.
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