live-in nanny cost

It can be a convenient solution for busy families, but really how much does a live-in nanny cost? With the rising costs of child care, it’s important to understand the financial commitment involved in hiring a live-in nanny.

The cost of a live-in nanny depends on various factors, including location, experience, and the specific needs of the family. In this article, we’ll break down the different costs associated with hiring a live-in nanny. 

At a glance:

How much should you pay a live-in nanny?
7 extra costs to consider for live-in nannies
Live-in nanny taxes and payroll
Breakdown of live-in nanny expenses by category
Other common questions about live-in nanny costs

How much do live-in nannies make?

Since nanny pay rates vary greatly depending on the job requirements, it is advisable to research your local market rates, consider the nanny’s qualifications and experience, evaluate additional responsibilities, and account for the live-in aspect of the job.

By taking these factors into consideration, parents can ensure that they are paying a fair and competitive nanny pay rate that reflects the value the nanny brings to the household.

  • Average live-in nanny salary

    The average live-in nanny salary in the US ranges from $30,000 to $60,000 annually, influenced by factors like location, with higher wages in major cities due to the cost of living.

    Additionally, experience, qualifications, and the scope of responsibilities, including care for multiples or night nanny duties for newborns, along with additional tasks like housekeeping, affect earnings. Higher live-in nanny salaries may reflect specialized skills, certifications, or experience level.

  • Average live-in nanny cost per month

    The monthly average cost for a live-in nanny ranges from $2,500 to $4,000. In metropolitan areas with higher living costs and minimum wage, such as New York or Los Angeles, expenses may lean toward or exceed the upper end of this range.

  • Average live-in nanny cost per week

    Parents can expect to pay an average cost of $400 and $1,000 per week for a live-in nanny. Remember, it’s essential to note that this weekly salary range can differ based on the variables mentioned.

  • Average live-in nanny hourly rate

    Finally, the average live-in nanny hourly rate can range from $10 to $25 per hour. In general, live-in nannies tend to work more hours per day and therefore have lower hourly rates compared to live-out nanny rates because room and board are provided as well as other compensation.

7 Extra Costs to Consider for Live-in Nannies

Generally, families offer additional compensation and benefits to live-in nannies as a way to enhance their employment packages and attract highly skilled and experienced professionals. These additional perks acknowledge the hard work of live-in nannies and aim to create a positive working relationship.

  1. Room and Board
  2. Room and board refers to providing the live-in nanny with housing and meals, typically in the family’s home. When budgeting, it is important to include the average monthly cost for room and board. This expense can vary significantly depending on your location.

    If you already have a guest room in your home, the average to house an additional adult, including utilities and meals in the US, would be in the range of $500 to $1,000 per month. However, this cost can be higher in areas with a higher cost of living.

    You may want to factor in additional costs if you utilize services like housekeeping, food delivery, and video streaming services that might be impacted by an additional adult in the household.

  3. Health insurance
  4. A family might want to pay for their live-in nanny’s health insurance for several reasons. Firstly, it demonstrates a caring and compassionate approach, showcasing the family’s commitment to their nanny’s overall well-being.

    The cost of providing health insurance for a live-in nanny can vary depending on the coverage and plan selected. On average, parents should budget between $200 to $500 per month for health insurance coverage for their live-in nanny. This cost can fluctuate based on the nanny’s needs, age, and any pre-existing conditions.

  5. Cell phone allowance
  6. Many families opt to provide their live-in nanny with a cell phone or a monthly cell phone allowance. This ensures that the nanny has reliable communication with the family at all times and can easily reach out in case of an emergency.

    The cost of a cell phone allowance can vary depending on the type of plan chosen and the features included. On average, parents should budget between $50 to $100 per month for a cell phone allowance for their live-in nanny.

  7. Transportation
  8. Depending on your location and the nanny’s responsibilities, you may also need to consider providing transportation for your live-in nanny. This could include providing a car for the nanny’s use, reimbursing for public transportation costs, or covering the expenses associated with using a ride-sharing service like Uber or Lyft.

    If you are providing a vehicle for your live-in nanny’s use, you will need to factor in additional costs such as car insurance, maintenance, and fuel. On average, parents should budget between $200 to $ 500 per month for transportation costs for their live-in nanny.

  9. Paid time off
  10. It is important to provide your live-in nanny with paid time off, including vacation time and sick leave. This ensures that your nanny has time to rest and recharge, which ultimately benefits both the nanny and your family.

    On average, a live-in nanny may be entitled to around two weeks of paid time off per year. This can be divided into a combination of vacation days and personal days. For example, the nanny may have the flexibility to take one week off for vacation and then use the remaining days for personal time as needed.

    On average, parents should budget between $1,000 to $2,000 per year for paid time off for their live-in nanny. This can include vacation days, sick leave, and any additional personal days.

  11. Holiday bonus
  12. During the holiday season, many families show their appreciation for their live-in nanny by giving a holiday bonus. According to a survey conducted by UrbanSitter, 68% of families give their nanny a holiday bonus and one week of pay is the most common amount.

    The holiday bonus serves as a token of gratitude for the nanny’s hard work and dedication throughout the year. It is a way for families to show their appreciation for the valuable role the nanny plays in their household. This bonus not only acts as a financial reward but also reinforces the bond and mutual respect between the family and the nanny.

  13. Other Extras for a Live-In Nanny
  14. Lastly, families might enhance their live-in nanny contract with additional perks, promoting job satisfaction and well-being.

    Including a retirement plan demonstrates investment in the nanny’s future, mirroring benefits given to traditional employees. Another thoughtful addition could be a gym membership, encouraging the nanny’s physical health and well-being, which is crucial given how many hours per day they work with your family.

    These extras, while requiring more budget, signify a family’s deep appreciation and care for their nanny’s overall welfare.

live-in nanny cost

Live-in nanny taxes and payroll

Overall, live-in nanny taxes and payroll can be a complex and often overlooked aspect of employing a live-in nanny. As an employer, it is your responsibility to understand and comply with the tax and payroll regulations associated with hiring a live-in nanny. Failure to do so can lead to legal consequences and financial penalties.

Do I have to pay taxes for a live-in nanny?

Yes. Families employing live-in nannies must pay taxes on their wages, according to the Internal Revenue Service (IRS), which classifies full-time nannies as household employees. This “nanny tax” covers social security, Medicare, and federal and state unemployment taxes, with the possibility of withholding federal income tax upon the nanny’s request.

More specifically, the IRS requires employers to pay taxes when the household employee earns more than $2,700 per year (as of 2024). Additionally, if your nanny earns more than $1,000 per quarter (as of 2024), then social security and Medicare taxes must be paid/withheld.

While estimating the nanny tax requires considering the nanny’s wages and state tax regulations, families generally allocate 10-15% of the nanny’s gross income for taxes. You’ll also want to offset these costs by taking advantage of the child care tax credit

Paying your nanny

Additionally, managing payroll can also be a headache, so many families opt to use a payroll service that handles tax withholdings, paperwork, and direct deposit for the nanny’s wages. These services can streamline the payroll process, ensure compliance with tax regulations, and provide peace of mind for both the family and the nanny.

For more information on the nanny tax and its requirements, families can visit the official IRS website dedicated to household employers. For accurate tax calculations and compliance, consulting a tax professional is advised.

Please note: We are not licensed tax professionals or payroll specialists. We encourage you to reach out to your tax professional for any questions or advice.

Breakdown of Live-In Nanny Expenses By Category

Expense Category Low-End Estimate High-End Estimate
Annual Salary $30,000 $60,000
Room and Board $500/month $1,000/month
Health Insurance $200/month $500/month
Cell Phone Allowance $50/month $100/month
Transportation $200/month $500/month
Paid Time Off $1,000/year $2,000/year
Holiday Bonus One week’s pay One week’s pay
Taxes and Payroll 10-15% of gross income 10-15% of gross income
Additional Perks (e.g., Gym Membership) Varies Varies
Total Estimate* $45,000/year $100,000/year

*These figures are rough estimates based on U.S.-based averages for illustration purposes. Actual costs vary significantly by location, individual needs, and specific arrangements.

Other Common Questions About Live-in Nanny Costs

  1. Are live-in nannies more expensive than live-out nannies?

    The cost of hiring a live-in nanny can vary depending on various factors, such as the location, experience, and qualifications of the nanny. However, in general, live-in nannies are often more cost-effective compared to live-out nannies. This is due to the fact that live-in nannies typically receive free room and board as part of their compensation package.

  2. How many hours per week do live-in nannies usually work?

    Live-in nannies are usually full-time nannies, working around 8-10 hours per day or 40-60 hours per week. The exact number of hours can vary week-to-week as schedules are typically flexible, requiring some weekend or evening work.

  3. Do I have to pay my live-in nanny overtime?

    In the U.S., the Fair Labor Standards Act requires families to pay live-in nannies overtime for any work more than 40 hours in a week. While specific agreements may affect overtime compensation, paying overtime is crucial for fair compensation and maintaining a respectful employment relationship.

  4. Are live-in nanny rates more expensive than live-out nanny rates?

    Though live-in nannies might seem cheaper when you break down their salary into an hourly rate, they’re typically costlier than live-out nannies overall due to room and board plus benefits like health insurance and transportation. These extras make the total expense higher, despite the seemingly lower hourly wage.

  5. Are live-in nannies more expensive than au pairs?

    Yes. Live-in nannies usually cost more than au pairs due to their professional experience and dedicated childcare. Au pairs, often younger and from abroad, provide care at a lower cost as part of a cultural exchange, but may lack the experience and qualifications of live-in nannies.

The bottom line

In conclusion, hiring a live-in nanny involves a comprehensive financial commitment that encompasses not just the nanny’s salary, but also covers the cost of room and board, extras like health insurance and transportation, as well as paid time off.

Considering all factors, including average salary, taxes, and various perks, the average total cost of employing a live-in nanny can range from the lower end of approximately $45,000 to the higher end of around $100,000 annually

Additional Resources

Please note that UrbanSitter is a platform for families and caregivers to connect. We are not an agency and do not employ caregivers. All members are individually responsible for any applicable tax, withholding or reporting. We are not licensed tax professionals. We encourage individuals to reach out to a local tax professional for any questions about tax preparations.

Recommended Posts