How Much Does It Cost To Hire a Nanny? Your Complete Guide

Thinking about bringing a nanny on board? Beyond simply agreeing on an hourly rate, several hidden costs can sneak up on you. Here’s what every parent should know before budgeting for childcare.

Minimum Pay in Your Area 

Start by checking your state and local minimum wage, your nanny’s rate can’t fall below it. In metro markets like New York City or Los Angeles, local ordinances often set higher floors, so be sure to look up your city’s specific requirements.

Competitive Local Rates 

On average, nannies across the U.S. earn around $20/hr, but your region makes a difference. In big cities you might see $25–$30/hr, while smaller towns often start near $15–$18/hr. Offering a rate that’s competitive in your neighborhood helps you attract top caregivers.

Taxes & Legal Obligations

When a nanny’s annual earnings top $2,400, you become a household employer and must handle:

• Social Security & Medicare (7.65% employer share)

• Federal & state unemployment taxes

• Workers’ compensation insurance

Skipping these can lead to fines so factor them into your budget.

Extra Duties Mean Extra Pay Cooking, driving kids to activities, or light housekeeping aren’t typically part of a basic nanny role. If your nanny takes on these tasks, plan for an additional $2–$5/hr, depending on complexity.

Experience & Special Skills 

A nanny with specialized training, newborn care certification, CPR, or a degree in early childhood development brings extra value. Expect to pay a premium for those qualifications.

Why Payroll Services Matter 

Managing payroll, taxes, and end‑of‑year filings can be overwhelming. For an expert breakdown on nanny payroll costs and compliance, check out the article from our trusted payroll partner, GTM - Payroll Services: 👉 How Much Does a Full‑Time Nanny Cost? (GTM)

Ready to find the perfect nanny for your family? At Mom’s Choice Nanny Agency, we make the process simple, supportive, and stress‑free. 👉 Click here to begin your personalized nanny‑match!