How Much Does a Nanny Cost?

The cost of a nanny is usually between $25 - $35 per hour. This varies depending on the details of the role, the nanny’s expertise and your location.

A skilled nanny can be a valuable addition to a family, to help parents manage the juggling act of children, school hours, work schedules, travel, extracurricular activities and busy lives!

We know it can be difficult to determine the right hourly rates for a nanny. The pay rate is a significant factor that helps employers attract and retain employees. Paying the right hourly rates will help parents find the best match for their family. This is particularly important in a tight employment market, where the demand for workers exceeds supply.

What is a nanny?

It’s important to define a nanny to determine the correct hourly rates. A nanny is a person who cares for children in the children's own home. She is usually a professional who has chosen to care for children as a career. Nannies commonly have a qualification in childcare or education. They may also have qualifications in CPR, first aid and anaphylaxis management. Most importantly career nannies are skilled and experienced in working with babies and children. Nannies are usually paid a higher hourly rate than a babysitter.

How much does a nanny cost?

Most nannies in major cities around the U.S.A. cost between $25-35 per hour. Hourly rates depending on the location, the nanny and the requirements of the role.

Based on a survey of the nannies in the U.S. here are the range of rates for a few cities:

How much does a nanny cost in Chicago?

The majority of nannies in Chicago are advertising rates between $18 - $35.

How much does a nanny cost in New York?

In New York most of the professional nannies have rates listed at $20 - $35 per hour.

How much does a nanny cost in Seattle?

In Seattle the majority of nannies are charging between $20-35/hour.

How much does a nanny cost in Minneapolis?

The nannies in Minneapolis are charging between $18-35/hour.

How much does a nanny cost through an agency?

As a comparison, here are some of the rates and fees that nanny agencies charge. Agencies usually conduct the screening, interviewing and credential checking for parents. The fees that agencies charge for this service vary.

What factors influence the hourly rates for nannies in the U.S.?

The hourly rates for nannies vary based on

• The nanny's qualifications
• The nanny's experience
• The number of children being cared for (rates are higher for 2, 3, 4 or more children)
• The ages of the children (rates are higher for young babies)
• The duties and responsibilities of the role
• Weekend work and holidays
• The location in the U.S.
• The employment market - the market forces drive hourly rates up or down. This is a significant factor post-pandemic with a tight labor market.

Is there a minimum wage for a nanny?

As household employees nannies are required to be paid the minimum hourly rate. This should be based on the highest of the Federal, states or counties. The Federal minimum wage is $7.25/hour. Please note that market rates for nannies are significantly higher than the minimums listed below. Here are the minimum wages in states around the U.S.

How much do agencies charge for nanny placement fees?

Nanny agencies commonly charge a placement fee for recruiting a nanny for long term positions with families. This is usually 10-15% of the annual gross compensation. This usually equates to $2,500 - $9,000.

Do hourly rates differ for part-time or full-time nannies?

A nanny who works on a part-time weekly basis earns between $400-$750/week gross, plus part-time benefits. This works out to $30-35/hour. A nanny who works on a full-time basis earns at least $1200/week gross, plus benefits. This works out to $30-35/hour. So the rates are in the same range. Hourly rates will differ though, based on the nanny’s experience and details of the role.

In addition to the nanny’s weekly pay, what benefits apply?

Benefits usually include paid vacation (two weeks for a full-time nanny), paid holidays and paid sick leave. Other benefits that parents may offer to attract and retain great nannies can include

• Guaranteed pay and overtime
• Health insurance contribution
• Paid professional development
• A holiday bonus
• Retirement plan contributions
• Higher health insurance contributions
• Mobile phone reimbursement

Is a nanny an employee or independent contractor?

Nannies can be

An employee: Federal laws that state that nannies, housekeepers and other household workers are considered employees if

• the nanny adheres to a specific schedule each week,
• the parents generally dictate the rules of how their work is done, when it’s done and what is done.
• the parents pay the nanny more than $2,400 per calendar year.

The parents are considered the employer and are responsible for paying and withholding taxes. These taxes are sometimes called the “Nanny Tax”.

An independent Contractor: According to IRS rules a nanny is considered self employed if they

• offer their work to the public
• have many families in their care
• bring their own supplies and goods to work
• determine how and when they work

In most cases being an ‘Independent Contractor’ applies to babysitters. Most nannies are defined as employees due to the nature of their job.

What is the Nanny Tax?

The Nanny Tax is a combination of taxes including Social Security, Medicare and Federal and State unemployment taxes that employers must pay, based on the wages paid to their employees. This applies when the nanny hits the threshold of $2,600 in wages (in 2023). The employer and the employee both pay an equal share of Social Security and Medicare Taxes. The Nanny Tax is important for nannies because it offers protections including Medicare and unemployment benefits if required. This also helps the nanny build a verifiable legal employment and credit history, which can help them apply for credit cards, loans or mortgages. The Nanny Tax helps employers by giving them tax savings.

What Type of Insurance Do Nannies Need?

Parents are responsible for providing insurance for their nanny if they’re an employee. This can include liability insurance, workers compensation, auto insurance and health insurance. You may like to consult an insurance agent to help with this.

What is the cost of a nanny share?

A nanny share is when 2 families employ 1 nanny to care for their children in one of the families' homes. Some families choose to share a nanny to halve the cost of care and provide the children with the shared care opportunity. This works well when each family has 1 or 2 children, so the total number of children combined is suitable for a sole carer. For example if the nanny's rate is $30/hr, then each family pays $15/hr.

How are nannies paid?

When it comes to paying your nanny, The Best Babysitters does not process payments. The parents and the nanny arrange this directly, off the platform. Some parents outsource nanny pay to specialist payroll services. There are many of these services that specialize in nanny or household employees and can manage the process and details for a monthly fee.

Can I pay cash to my nanny?

Yes, it is legal to pay wages in cash, as long as you take out the appropriate tax deductions. This may be more convenient for some families. In this situation the income must be declared and the employer and employee must follow all the IRS requirements.

Should we write an Employment Contract for our nanny?

To finalize the arrangements regarding your nanny’s pay and conditions, it’s wise to consider writing an employment contract. An employment contract is a great way to formalize the exact details of the role, the pay and conditions for your nanny. It’s a good opportunity to discuss, agree and set expectations as you write the contract. Areas to consider include:

• Agreement to background check and reference checks.
• Job description - detailed list of duties and responsibilities
• Standard days and hours of work
• Overtime, overnights or travel with family
• Starting date
• Wages and benefits - including vacation and sick pay
• Extra benefits if applicable
• Payroll system
• Reimbursement for expenses
• Notice for leave requests
• Paid trial / orientation
• Performance review dates
• Termination of employment - notice required & process
• Review dates for this agreement.

Please note The Best Babysitters cannot provide professional advice regarding nanny employment. This information is only provided as a general guide. The Best Babysitters is not a nanny agency, we are simply a job posting and introduction site. We give parents an affordable and efficient way to meet a range of carers to suit their family. We do not specify the nannies' rates or add any other costly overheads. Nannies create profiles on our site and state their rates. Parents have the freedom and flexibility to select the best babysitter or nanny for their family.

We hope that this information helps give you an overview of how much a nanny costs in cities in the U.S.