Nanny Care
In-home childcare provided by a caregiver employed directly by the family in the family's own home.
Nanny care is the most personalized form of childcare, where a dedicated caregiver works exclusively for one family, typically in the family's home. Nannies may be full-time (40 or more hours per week), part-time, live-in, live-out, or shared between two or three families (a nanny share) to reduce cost. The International Nanny Association and survey data from Care.com put median nanny hourly wages at $20 to $25 nationally, with live-in nannies often compensated at a lower hourly rate plus room, board, and benefits. Full-time nanny care in high-cost metros routinely exceeds $45,000 to $70,000 per year when including payroll taxes, workers compensation, and paid time off, making it the most expensive childcare option. Unlike center and family-based care, the DOL National Database of Childcare Prices does not track nanny costs because nanny arrangements are private employment contracts rather than licensed childcare services. Families employing a nanny become household employers, obligated to withhold federal and state taxes, issue a W-2, carry workers compensation insurance in most states, and comply with domestic-worker labor laws. Federal "nanny tax" thresholds kick in when wages exceed $2,700 per year (2024 figure), triggering Social Security, Medicare, and FUTA obligations. Despite the cost, families choose nannies for maximum schedule flexibility, one-on-one attention, reduced exposure to illness in group settings, and the ability to care for children in their own home environment. Nanny care is most common for infants (when center costs are highest and ratios are lowest) and for families with nonstandard work schedules, multiple young children, or children with special medical needs.