Texas Nanny Tax Guide 2026
Paying a nanny, caregiver, or housekeeper in Texas? Federal rules apply once cash wages reach $3,000 for the year and Texas taxes employer-paid wages up to $9,000 per employee for state unemployment. Estimate the federal taxes below, then use the state links for registration.
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Cash wages only — Pub 926 excludes the value of meals and lodging provided for your convenience, and wages to a spouse, your child under 21, your parent, or an employee under 18 are generally not counted.
State unemployment tax and, in many states, workers’ compensation are additional and not included here. File Schedule H (Form 1040) with your 2026 federal income tax return by April 15, 2027.
Verified 2026-07-31 against Publication 926 (2026), Household Employer's Tax Guide (effective 2026-01-01)
Verified 2026-07-31 against State household-employer registration and UI wage bases (per-row citations) (effective 2026-01-01)
Estimate only — not legal, tax, or financial advice. Only the IRS can determine your actual amounts.
Official source: IRS Publication 926 — Household Employer’s Tax Guide ↗
State unemployment tax
Taxable wage base: $9,000 per employee for 2026. Employers pay state unemployment tax on wages up to that amount, in addition to federal FUTA.
Register as an employer in Texas ↗Workers’ compensation
The Texas Department of Insurance states that "In Texas, private employers can choose to carry workers' compensation insurance coverage, but it is not required in most cases"; the TDI employer page does not set a separate rule for household employers.
New-hire reporting
States require employers to report a new hire shortly after the start date, household employers included.
Texas new-hire reporting ↗Federal side
Social Security and Medicare apply once cash wages reach $3,000; FUTA is triggered by $1,000 in any calendar quarter and applies to the first $7,000 of wages. File Schedule H (Form 1040) with your 2026 federal income tax return by April 15, 2027.
Check whether the nanny tax applies to you →Source for Texas: TWC, Especially for Texas Employers — Estimate Chargebacks and Tax Rates ("'taxable wages' means only those wages taxable under the Texas unemployment tax laws, i.e., the first $9000 of each employee's earnings in a calendar year"); TWC Unemployment Tax Registration; Office of the Attorney General of Texas, New Hire Reporting; TDI, Workers' compensation — employer resources (verified 2026-07-31).
Texas household-employer questions
Do I have to pay nanny taxes in Texas?
The federal rules apply everywhere: once cash wages to a household employee reach $3,000 for 2026, Social Security and Medicare taxes apply and are reported on Schedule H. Texas adds its own state unemployment tax registration on top, and the calculator on this page estimates the federal portion.
What is the Texas unemployment taxable wage base?
Texas sets its state unemployment taxable wage base at $9,000 per employee for 2026, according to TWC, Especially for Texas Employers — Estimate Chargebacks and Tax Rates ("'taxable wages' means only those wages taxable under the Texas unemployment tax laws, i.e., the first $9000 of each employee's earnings in a calendar year"); TWC Unemployment Tax Registration; Office of the Attorney General of Texas, New Hire Reporting; TDI, Workers' compensation — employer resources. State unemployment tax is paid by the employer on wages up to that amount, separately from the federal FUTA tax.
Do I need workers' compensation insurance for a nanny in Texas?
The Texas Department of Insurance states that "In Texas, private employers can choose to carry workers' compensation insurance coverage, but it is not required in most cases"; the TDI employer page does not set a separate rule for household employers. Coverage rules turn on hours worked and wages paid, so the state agency page is the place to confirm a specific situation — and an insurance agent or employment attorney can advise where it is close.
How do I register as a household employer in Texas?
Registration happens with the state agency directly — the links on this page go to Texas's own employer registration and new-hire reporting pages. You will also need a federal EIN from the IRS, which is free and issued immediately online.
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Nanny and household-employer payroll service that files Schedule H, state registrations, and quarterly returns for you.
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Other states
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