How Much Does a Nanny Cost?

Last Updated on January 21, 2024
Written by CPA Alec Pow | Content Reviewed by Certified CFA CFA Alexander Popinker

Hiring a nanny can provide incredible peace of mind for busy parents, but it also represents a significant financial investment. As you weigh the pros and cons of nanny services, one of the key factors to consider is cost. In this comprehensive guide, we’ll break down the various expenses associated with hiring childcare help so you can determine if it fits your family’s budget.

We’ll cover the costs of different types of nannies, look at what impacts rates and salaries, highlight additional hiring expenses, and provide budgeting tips. Read on for real-world insights into nanny prices so you can make an informed decision when hiring childcare help.


To summarize this guide on nanny salaries and costs:

  • Full-time live-in nannies are the biggest investment, costing $25k to $65k annually.
  • Many factors like experience, location, and duties impact what you’ll pay.
  • Carefully weigh base salary, taxes, insurance, and other costs.
  • Nanny shares and part-time help can provide quality care at lower prices.
  • Find the right balance between cost and reliability by researching rates and being clear on priorities.

How Much Does a Nanny Cost?

There are a few main categories of nannies, each with typical price ranges:

Full-Time vs. Part-Time

Full-time nannies provide 40 or more hours of care per week and command the highest rates. Expect to budget $800 to $1,800 per week for one, which works out to $35,000 to $65,000 annually.

Part-time nannies work fewer hours, generally 25 or less per week. Their hourly rates are similar but total costs are lower – expect to spend $15 to $25 per hour for part-time care.

Live-In vs. Live-Out

Live-in nannies reside in your home and provide care for an extended time, often up to 60 hours per week. This arrangement costs $500 to $850 per week on average.

Live-out nannies live in their own homes and work a set schedule, like 9 am to 5 pm. They charge hourly rates in line with part-time nannies.

According to Care’s 2023 Cost of Care survey, the national average cost of a nanny for one child averaged $736 per week, or about $18.40 per hour.

The cost of a live-in nanny in Brooklyn, New York is currently about $22 an hour, while the cost of a live-in nanny in San Antonio, Texas is around $16.754.

Perfect Fit Nanny notes that the cost of hiring a nanny in Phoenix is around $20-25 per hour, while it is $25-30 in Denver. The cost of a nanny also varies based on factors such as the number of children, the ages of the children, and additional tasks.

Nanny Parent Connection membership starts as low as $8.99/month, and all Family/Parent memberships include personal Members also receive discounted pricing on all background check orders and have unlimited access to Plan To Budget: $0 – $10,000 The Background Check.

Factors Affecting Nanny Rates

Several factors affect what you’ll pay for a nanny:

  • Experience – Nannies with more years caring for kids or special skills command higher pay.
  • Location – Big cities with a high cost of living have pricier rates.
  • Job duties – Nannies expected to drive, cook, or teach kids merit higher pay.

Also consider a nanny’s education, background, training, and the number of kids she’ll care for.

Average Nanny Salaries and Hourly Rates

According to data, the average nanny hourly rate in the U.S. is $19.14. Monthly salaries usually range from $2,500 to $4,500 depending on hours, location and duties.

Here are typical nanny rates for popular roles:

  • Full-time live-out nanny: $3,500/month
  • Part-time afterschool nanny: $20/hour
  • Live-in nanny (60 hrs/wk): $2,800/month
  • Weekend nanny: $25/hour

Be prepared to pay on the higher end for nannies in expensive urban areas like New York or San Francisco.

Negotiating Nanny Salaries

When hiring a nanny, there is often room to negotiate pay. Be clear about your budget and ask what salary they expect. Many will work with you to find an amount you’re both happy with.

Also consider non-monetary benefits like paid time off, use of a vehicle, etc. that you can offer instead of higher pay.

Additional Costs of Hiring a Nanny

On top of weekly or average hourly rates, factor in these extra nanny expenses:

  • Agency fees – Using a nanny agency costs $300 to $1,500.
  • Taxes – You must pay nanny taxes like payroll, Social Security, and Medicare.
  • Insurance – Options like health insurance or accident coverage add costs.
  • Expenses – Things like gas, activities, and meals can add a few hundred dollars monthly.

Make sure to budget around $5,000 to $10,000 extra per year on top of base nanny pay.

You might also like our articles about the cost of day care, Kiddie Academy, or Lightbridge Academy.

Legal Considerations for Nanny Hiring

To hire a nanny legally, you should:

  • Create an employment contract outlining pay, duties, benefits, etc.
  • Follow labor laws for overtime, breaks, minimum wage, and more.
  • Obtain workers’ comp and disability insurance.
  • Handle taxes correctly by withholding and filing.

This protects both you and your nanny. Seek legal help to ensure compliance.

Tips for Budgeting to Pay a Nanny

Here are some tips to budget wisely for a nanny:

  • Research average rates in your area.
  • Get quotes from a few candidates.
  • Calculate total costs beyond just hourly pay.
  • See if you qualify for tax credits like the Child and Dependent Care Credit.
  • Set a max budget and stick to it when negotiating.
  • Consider a nanny share to split costs with another family.

How to Calculate Your Total Nanny Costs

Add up these elements to determine your total costs:

  • Hourly or weekly base pay
  • Overtime or extra hours
  • Agency fees if applicable
  • Payroll taxes – often 10-15% of salary
  • Insurance costs if providing
  • Other expenses like food, gas, activities

Use a nanny tax calculator online to estimate taxes and run the numbers for different scenarios.

Finding an Affordable, Reliable Nanny

Nanny Helps You With Your ChildIf hiring a full-time nanny busts your budget, consider these lower-cost options:

  • Hire a part-time or afterschool nanny for just the hours you need coverage.
  • Look for a nanny who is newer to the field and charges lower rates.
  • Find an au pair – they provide 45 hours of child care for around $400 per week.
  • Post on job sites or use social networks to find candidates without paying an agency.
  • Offer room and board to lower salaries for live-in help.

Vet candidates thoroughly and don’t sacrifice on safety and responsibility just to save money.

The Impact of Agencies on Cost

Working with an agency that pre-screens nannies can cost $1,000 to $15,000 depending on services. But they match you with thoroughly vetted candidates worth the higher investment.

Alternatively, you can hire a nanny independently and just pay the one-time cost for a background check, usually $50 to $100. Just make sure you check for proper certifications and qualifications when hiring someone.

Real-Life Nanny Salaries and Costs

To give you a real-world idea of what you should expect to pay, here are some examples from families and their costs of child care:

  • Sara in Chicago spends $2,800/month for a part-time nanny caring for her two kids before and after school.
  • James employs a full-time nanny in Houston for $50,000 a year including taxes and expenses.
  • Alicia hired a live-in au pair in Denver for $460 per week, saving almost $15,000 annually over a full-time nanny.
  • Doug and Susan split the cost of a nanny in Seattle using a nanny share model, paying just $1,750 per month each.

Balancing Cost, Quality, and Reliability

The most affordable nanny options may not provide the level of experience, responsibility, and skill you want for your kids. On the other hand, hiring the most educated nanny with glowing references could blow your budget.

Analyze your childcare needs, research local rates, and determine what balance of cost and quality help you can realistically afford before starting your search.

Final Words

Hiring help can bring welcome relief for stressed families. Understanding nanny costs and aligning expectations with the budget makes the process smoother.

Frequently Asked Questions

What’s the difference between a nanny and a babysitter?

The main difference between a nanny and a babysitter is the level of involvement and responsibility. A nanny provides full-time or near full-time comprehensive care for children and takes on responsibilities like cooking, driving, and light housekeeping.

A babysitter offers part-time, temporary care with minimal additional duties beyond watching the kids. Nannies also tend to build closer bonds with families and provide more educational activities. While babysitters are less expensive, nannies offer more complete care and support.

Do nannies clean the house?

It’s common for nannies to provide some light housekeeping and domestic chores in addition to childcare. Typical nanny duties may include cooking simple meals for kids, doing their laundry and dishes, tidying play areas or kids’ rooms, and occasionally helping with errands.

However, deep cleaning such as scrubbing bathrooms or mopping floors is not standard. Families should be clear about housekeeping expectations upfront and compensate nannies accordingly if extensive home maintenance will be required. The core role of a nanny is caring for and engaging with children, so cleaning should be a secondary task.

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