When calculating the full weekly cost for a nanny, it’s crucial to look beyond just the hourly or daily rate. The rate itself, which often sits between $15 and $25 per hour for one child in the US, will vary based on location, the nanny’s experience, factors like childcare requirements, and whether you opt for full-time or part-time care.
Full-time live-out nannies can easily total $700-$1,400 per week, assuming a 40- to 60-hour work week. For those choosing a live-in arrangement, costs might be a bit less in wages but could increase slightly when factoring in room and board, which, depending on your circumstances, can translate into a modest weekly allowance to the nanny for food, utilities, and private quarters. Overnight or around-the-clock care tends to raise the weekly rate because of overtime pay requirements, pushing costs well over $1,800 in many areas.
Part-time or after-school nannies generally work fewer hours, perhaps 15-30 per week, so their weekly expenses can range from $300-$900 depending on hours and duties. If you only need occasional care—like date nights or events—hourly hires will be less costly up front, but over a year, can add up or become unpredictable.
If your care involves multiple children, the rate climbs; each additional child may boost the hourly rate by $1 to $3 or more, pushing total weekly costs up accordingly.
It isn’t just wage expectations to consider, though. Taxes are a significant and often overlooked expense: as an employer, you’ll need to withhold Social Security and Medicare taxes (FICA, presently 15.3% of earnings), plus federal and sometimes state unemployment taxes—these employer obligations can add several hundred dollars per month. Some families set aside an extra $50-$150 per week for taxes and related paperwork.
And then come the legal requirements. Many states require you to carry workers’ compensation insurance if hiring a nanny, which safeguards both you and your employee in case of injury on the job. Even if not mandatory in your state, it’s worth considering. For families interested in a nanny share—where two families split the cost and portion care—those costs, like taxes and insurance, may be split. However, the hourly wage could go up to account for the extra responsibility on the nanny.
Let’s lay out an approximate breakdown for typical weekly costs:
Base wage (40 hours @ $20/hr) $800
Overtime (5 hours @ $30/hr)* $150
Employer taxes $100-$150
Additional weekly expenses (insurance/activity stipends) $30-$50
LIVE-IN OPTION
Base wage (live-in) $700
Room & board value $150-$250
Employer taxes $80-$120
Additional weekly expenses (meals/activities) $30-$50
NANNY SHARE
Base wage (shared hours) ~$700
Split between 2 families ~$350 ($175 per family)
Taxes for each family ~$50-$75
*Note: Overtime is typically paid at time-and-a-half for hours beyond 40 per week.
**Note: Exact tax amounts depend on wages and local/state requirements.
In the end, weekly nanny costs can vary widely. The final amount depends on the level of care, additional responsibilities, your family’s specific needs, and how you choose to structure employment (live-in vs. live-out, full-time vs. part-time, share arrangements, and so on). By factoring in base pay, employer obligations, and legal requirements, you can budget for all aspects of in-home childcare and avoid surprises down the road.