Use this nanny tax calculator to see what employing a nanny really costs. When you employ a nanny you become an employer, so on top of their gross pay you pay employer National Insurance and pension contributions, and you deduct their tax through payroll.
Cost of employing your nanny
- Your total cost a year
- –
- Employer NI
- –
- Employer pension
- –
- Nanny takes home a month
- –
| Year | Week |
|---|
In the example, a nanny on a £30,000 gross salary costs the family £34,462.80 a year: £3,750.00 employer National Insurance and £712.80 employer pension on top of the salary. The nanny takes home about £2,014.10 a month.
How to use the nanny tax calculator
- Enter the gross pay you have agreed, yearly or weekly. Always agree pay as a gross figure, so changes in tax rates do not change your costs.
- Keep the pension box ticked if your nanny is enrolled in a workplace pension, which is required if they earn over £10,000 and are aged 22 or over.
- Choose where the nanny lives for Income Tax. Scottish residents pay Scottish rates.
What taxes do nanny employers pay?
- Employer National Insurance: 15% on earnings above £5,000 a year (£96 a week).
- Employer pension: at least 3% of qualifying earnings between £6,240 and £50,270.
- Your nanny’s Income Tax and NI: you deduct these from their pay through PAYE and pay them to HMRC.
Families cannot claim the £10,500 Employment Allowance for someone who works in their home, so the full employer NI is due. The GOV.UK guide to employing someone in your home explains when you count as the employer.
Nanny cost examples
| Gross salary | Employer NI | Employer pension | Total cost | Nanny net a month |
|---|---|---|---|---|
| £20,000 | £2,250 | £413 | £22,663 | £1,447 |
| £25,000 | £3,000 | £563 | £28,563 | £1,731 |
| £30,000 | £3,750 | £713 | £34,463 | £2,014 |
| £35,000 | £4,500 | £863 | £40,363 | £2,297 |
| £40,000 | £5,250 | £1,013 | £46,263 | £2,581 |
| £45,000 | £6,000 | £1,163 | £52,163 | £2,864 |
The nanny tax calculator uses yearly figures. Payroll works per pay period, so the NI each week or month can differ slightly from a twelfth of the yearly total.
Gross vs net pay agreements
Many nannies quote a net weekly figure. If you agree a net wage, you take on the risk of any tax change and the cost goes up if your nanny has another job or a different tax code. Use the nanny tax calculator to turn a net figure into a gross salary, and put the gross figure in the contract.
Nanny tax calculator for part-time and live-in nannies
For a part-time nanny, enter the weekly gross pay. If they earn under £96 a week, no employer NI is due, but you must still check the minimum wage. Live-in nannies are paid the same way, and accommodation can count towards the minimum wage only up to a small daily limit. Our hourly wage calculator turns a weekly wage into an hourly rate.
Setting up as a nanny employer
- Register as an employer with HMRC before the first payday.
- Run payroll. Use HMRC’s Basic PAYE Tools or a nanny payroll service, report pay each payday and pay HMRC by the 22nd of the next month (or quarterly if you qualify).
- Set up a workplace pension and enrol your nanny if they qualify.
- Give a written contract and payslips, and check their right to work in the UK.
- Consider insurance. Employers’ liability insurance is not legally required for household staff, but it is strongly recommended.
Once payroll is running, re-check your costs with the nanny tax calculator every April, when tax and NI thresholds can change.
Help with the cost of a nanny
If your nanny is Ofsted registered (or registered in Scotland or Wales), you may be able to pay using Tax-Free Childcare, which adds £2 for every £8 you pay. See the tax free childcare calculator. Nanny shares, where two families split the cost, also need separate payroll for each family.
Frequently asked questions
How much does a nanny cost per year?
For a £30,000 gross salary, about £34,463 a year including employer NI and pension. Add payroll fees, insurance and any expenses such as food and outings.
Do I have to pay tax for my nanny?
Yes, if you employ them and they earn over the Lower Earnings Limit. You deduct their tax and NI and pay employer NI to HMRC. Nannies are rarely self-employed.
Can I claim the Employment Allowance for my nanny?
No. The Employment Allowance is not available for employees who do personal, household or domestic work.
What about holiday pay?
Nannies are entitled to 5.6 weeks of paid holiday a year, including bank holidays, like other workers.
About this calculator
This nanny tax calculator uses 2026/27 tax, National Insurance and auto-enrolment figures, checked against GOV.UK on 9 November 2026. It assumes the nanny has no other job and a standard tax code. Results are estimates.