In this article
Once you’ve made the decision to hire a nanny to care for your kids, the next step is figuring out how much you should pay them. If you’ve never hired a nanny before, this can feel a little overwhelming. However, we’ll cover several topics that should help you come up with a realistic pay rate for your nanny.
Key takeaways
- What factors influence the hourly pay rate for a nanny? Several factors influence a nanny’s hourly pay rate, including the number of children they’ll be caring for, their level of experience, whether they have first aid or CPR certification, and any additional job responsibilities beyond childcare.
- How can I determine the nanny pay rate in my city if it’s not listed? If your city isn’t listed, you can use our Cost of Care Calculator to estimate the hourly pay rate in your area. Keep in mind that rates may vary depending on location and specific circumstances.
- Are there additional costs associated with hiring a nanny? Yes, in addition to the nanny’s hourly rate, you should consider household employment taxes, workers’ compensation insurance (if required by your state), and the use of a nanny tax service like HomePay to manage tax filings, payroll calculations, and compliance with labor laws.
What is the current hourly pay rate for a nanny in my area?
According to the Care.com 2024 Cost of Care Report, parents posted rates for nannies averaging $766 per week, or about $19.15 per hour.
To get a baseline for how much a nanny earns in your city, Care.com is a great resource. Based on the millions of job posts on the site, the average posted nanny rate in the U.S. currently ranges between $20.13 and $27.27 per hour, and here is the average posted starting rate* for a nanny in several major cities.
| City, State | Avg. Nanny Pay Rate by City | City, State | Avg. Nanny Pay Rate by City |
|---|---|---|---|
| Atlanta, Georgia | $21.01/hr | Nashville, Tennessee | $20.73/hr |
| Austin, Texas | $22.14/hr | New York City | $23.07/hr |
| Baltimore, Maryland | $19.87/hr | Philadelphia, Pennsylvania | $20.87/hr |
| Boston, Massachusetts | $22.72/hr | Phoenix, Arizona | $19.80/hr |
| Charlotte, North Carolina | $19.86/hr | Pittsburgh, Pennsylvania | $19.63/hr |
| Chicago, Illinois | $21.20/hr | Portland, Oregon | $21.55/hr |
| Dallas, Texas | $20.39/hr | Sacramento, California | $21.87/hr |
| Denver, Colorado | $22.15/hr | Salt Lake City, Utah | $19.02/hr |
| Detroit, Michigan | $19.94/hr | San Diego, California | $22.55/hr |
| Houston, Texas | $19.27/hr | San Francisco, California | $27.60/hr |
| Los Angeles, California | $25.25/hr | Seattle, Washington | $25.43/hr |
| Miami, Florida | $21.42/hr | Kansas City, Missouri | $18.09/hr |
| Minneapolis, Minnesota | $19.89/hr | Washington, DC | $21.72/hr |
If you don’t see your city on this list, use our Cost of Care Calculator to see the estimated rate in your city. Keep in mind, these hourly nanny pay rates assume a nanny caring for one child and working full time. If your care needs are different, you should decrease or increase this rate.
What should I take into account to adjust my nanny’s hourly pay rate?
Now that you have a good estimate of what the average nanny expects to earn in your area, you need to look at the details of the job you’re offering and the credentials of the nannies you’re interviewing to fine-tune the final pay rate. Here are four major factors to consider:
1. How many children your nanny will care for
Nannies who watch multiple children should earn more than nannies watching one child. Best practices are to increase your hourly rate $1 to $2 per hour for each additional child a nanny cares for.
2. How much experience your nanny has
According to the International Nanny Association’s most recent salary benefits survey, nannies with 1-3 years of experience earn almost $2 less per hour than nannies with 4-6 years of experience. Additionally, a nanny with 7-10 years experience earns about $1 per hour more than a nanny with 4-6 years of experience. The point is, the more experience a candidate has, the more you can expect to pay for their services.
3. Whether your nanny is first aid or CPR certified
If so, they most likely should command a higher hourly rate than a candidate with no medical training. The added peace of mind knowing your nanny can provide a basic level of support for your child if something goes wrong is generally worth paying extra for.
4. Any job responsibilities that go beyond caring for your kids
Some families ask their nanny to pitch in with additional household help, such as laundry and running errands. If you’re planning to ask your nanny to handle things like this, expect to pay them additional money for these tasks.
What other costs are associated with hiring a nanny?
By now, you should have a good idea of what to pay your new nanny. But there are other expenses aside from payroll that you need to think about to finalize your total care budget.
Household employment taxes
Sometimes called nanny taxes, these will be about 10% of the wages you pay your nanny. The IRS says when you pay a nanny $2,800 or more during the calendar year, you’re responsible for paying these taxes.
Workers’ compensation insurance
Your state may require you to have a workers’ compensation insurance policy in place to protect you and your nanny if they get hurt while on the job.
Tax and payroll service
Many families either don’t have the time or the desire to manage all the tax filings, payroll calculations, labor law compliance updates and government notice correspondence that come with being a household employer. Using a nanny tax and payroll service like HomePay should be part of your budget if you need help. Give us a call at (888) 273-3356 for a free consultation and we’ll walk you through any questions you have!
Next Steps:
- Use a budgeting calculator to figure out your tax costs and tax breaks.
- Learn about how to set up payroll for your nanny.
- Read about the specific tax and payroll rules the IRS has for hiring a nanny.
