What nanny taxes do I pay in Massachusetts?
Reviewed September 2026 against the same data that powers Kindred's free calculators.
If you pay a nanny $2,700 or more in a year, you owe the federal "nanny taxes": Social Security and Medicare (7.65% employer share) plus federal unemployment tax. In Massachusetts, you also pay state unemployment tax of about 2.03% on the first $15,000 of wages, plus a small state program surcharge. Your nanny gets a W-2, not a 1099.
Federal obligations (same in every state)
Once your nanny crosses the $2,700 annual threshold, the IRS treats you as a household employer:
- Social Security and Medicare (FICA): 7.65% paid by you and 7.65% withheld from your nanny's wages
- Federal unemployment tax (FUTA): effectively 0.6% on the first $7,000 of wages for most employers
- A W-2 for your nanny each January. Household workers are employees, not 1099 contractors, in nearly every real arrangement.
Massachusetts obligations
On top of the federal rules, Massachusetts adds:
- State unemployment tax (SUTA): about 2.03% on the first $15,000 of wages, at the typical new-employer rate
- Additional employer-paid state programs: about 0.37% of wages (MA PFML: ~0.69% split between employer and employee)
- Employee-side state programs you withhold from your nanny's check: about 0.32% of wages
- Massachusetts has a state income tax. Withholding it for a household employee is usually optional for you, but your nanny still owes it, so most families withhold as a courtesy.
- Workers' compensation: Required for household employees working 16+ hours/week under Massachusetts' Domestic Workers Bill of Rights.
Get the real number for your budget
The free Kindred nanny tax calculator applies these Massachusetts rates to your actual hours and hourly rate, and shows the employer cost and your nanny's take-home side by side.
Related
- How much does a nanny cost in Massachusetts?
- Do nannies get overtime in Massachusetts?
- What is the nanny tax?
This page is a plain-English summary for planning, not tax or legal advice. Rates and thresholds change; confirm current figures with the IRS, your state agency, or a payroll professional before filing.