What nanny taxes do I pay in Oregon?
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 Oregon, you also pay state unemployment tax of about 2.4% on the first $56,700 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.
Oregon obligations
On top of the federal rules, Oregon adds:
- State unemployment tax (SUTA): about 2.4% on the first $56,700 of wages, at the typical new-employer rate
- Additional employer-paid state programs: about 0.4% of wages (OR Paid Leave: 1% split 40% employer / 60% employee. OR Transit Tax: 0.1%)
- Employee-side state programs you withhold from your nanny's check: about 0.6% of wages
- Oregon 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 under Oregon's Domestic Workers' Protection Act for household employees working 25+ hours/week.
Get the real number for your budget
The free Kindred nanny tax calculator applies these Oregon rates to your actual hours and hourly rate, and shows the employer cost and your nanny's take-home side by side.
Related
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.