Nanny Cost: Average Prices & Cost Factors

A nanny is a household employee who cares for your children in your home, either on a set schedule or live-in. Because you are the employer, the hourly rate is only part of the cost. Payroll obligations, overtime, and benefits you offer all affect what you actually spend.

This guide looks at hourly rates from several sources, what a full-time and part-time schedule costs per week, and how much rates differ by city. It also covers the factors that raise pay and the employment costs that sit outside the hourly rate. Rates come from posted job listings and nanny profiles, so they are a starting point for a negotiation.

National averages cluster in a band, but each source measures something different. Care.com reports rates that parents post for jobs. Sittercity reports the average hourly rate of the nannies on its platform. Payscale reports a median based on salary profiles, with a spread from the lower tenth to the upper tenth.

A posted rate is what a parent offers, which is not always what a nanny ends up earning, and rates differ with the number of children and the duties involved. If you are setting a budget, use the figure that matches your city and the kind of care you need.

Weekly cost depends on hours. At the Care.com average of $870/wk for a full-time week, a part-time schedule costs less in proportion. Posted figures for a 30-hour week reach $652.50/wk, a 20-hour week $435/wk, and a 15-hour week $326.25/wk.

These weekly numbers come from multiplying the posted hourly average by the hours worked, so they do not include overtime, taxes, or benefits. Full-time nanny schedules often run past the standard hours, and overtime rules can apply. Ask a tax or employment professional how the rules in your state apply to you.

Where you live is a major factor. Sittercity publishes rates by metro area, and the spread between the most and least expensive cities is wide.

Cities with a high cost of living, such as San Francisco and New York, are at the top of the list. Smaller metros tend to be lower. Prices within a metro also vary by neighborhood and by how many families compete for nannies.

• Experience and training, including CPR and first-aid certification.
• The number of children in your care.
• Extra duties such as cooking, laundry, or driving.
• Live-in or live-out arrangement and the hours required.
• Special needs or infant care.
• Your location and demand for care in your area.

Rates rise with each child you add, and a common recommendation is to add a modest amount for each extra child.

Hiring a nanny makes you a household employer, and the rate you agree on is not the whole bill. You will likely owe employment taxes and may need workers' compensation coverage. Paid time off, holidays, sick days, and a guaranteed-hours agreement are part of many nanny contracts. Some families also pay for health stipends or contribute to a retirement plan.

The rules on employment taxes, minimum wage, and overtime depend on where you live and how much you pay. Speak with a tax professional or a household payroll service before you hire so that you know which obligations apply.

A nanny offers one-on-one care at home with flexible hours, which helps families with irregular schedules or several children. Daycare may be less expensive per child and runs on set hours. An au pair is a program participant on a cultural exchange visa with weekly hour limits, and the family pays an agency fee plus a stipend. Compare the full annual cost of each option, including payroll costs for a nanny.

If a full-time nanny is out of reach, a nanny share splits one nanny between two families, usually at your home on alternating days or at a shared location. Each family pays a portion of the rate, and the nanny often earns more in total than from one family. Part-time and after-school nannies are another option when you only need coverage for certain hours. Whichever route you take, put the schedule, pay, and notice period in writing.

1. Write a job description with hours, duties, and pay range before you post.
2. Check references and run a background check with the nanny's consent.
3. Ask about experience with your children's ages.
4. Agree on pay, raises, time off, and overtime in writing.
5. Use a trial period to see whether the fit works before committing.