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CareTax vs HomePay
A factual comparison of CareTax and Care.com HomePay for household employers.
In one sentence
HomePay files for you. CareTax shows you the math and lets you file. Pick HomePay for hands-off; pick CareTax for transparency and lower cost.
CareTax and Care.com HomePay both help household employers manage nanny payroll, but they operate differently. HomePay is a full-service provider: it files your federal and state payroll taxes and moves money on your behalf. CareTax is a calculation and record-keeping tool — it produces the numbers and documents you need, but you remain responsible for filing forms and making tax deposits yourself. HomePay is the right fit if you want hands-off compliance; CareTax is the right fit if you want full visibility into your numbers at a lower cost and are comfortable handling your own filings.
Feature & Pricing Comparison
Pricing and features as of April 2026— verify on the provider's site.
| Feature | CareTax | HomePay |
|---|---|---|
| Coverage (states) | All 50 states | All 50 states |
| Pricing | Free tier; paid plans from $5.99/mo or $49.99/yr | See provider site for current pricing |
| Pay run calculations | ✓ | ✓ |
| Tax withholding calculations | ✓ federal and state | ✓ federal and state |
| Year-end docs (W-2/W-3/Schedule H) | Reference docs (paid plan) | Filed on your behalf |
| Filing on your behalf | — you file | ✓ |
| Direct deposit / payments | — | ✓ |
| State registration help | Guides provided; you register | ✓ |
| Free tier | ✓ up to 2 saved pay runs | — |
When to Choose Each
Choose CareTax if…
- You want to see exactly how federal and state taxes are calculated before paying for a service.
- Your total payroll cost is modest and you are comfortable making quarterly tax deposits yourself.
- You already use an accountant and just need accurate numbers and records to hand off.
- You want to keep annual costs under $50.
Choose HomePayif…
- You want someone else to handle all filings, deposits, and state registrations on your behalf.
- You prefer not to track filing deadlines or interact with tax agencies directly.
- You are a first-time household employer who wants end-to-end support from a large, established platform.
Frequently Asked Questions
- Is CareTax cheaper than HomePay?
- CareTax's paid plans start at $5.99/month or $49.99/year. HomePay's pricing is not publicly listed on their website; check their site for current rates. The two products serve different needs: CareTax gives you the calculations and you file yourself, while HomePay files on your behalf, which typically costs more.
- Does CareTax file taxes for me?
- No. CareTax calculates your withholdings, employer taxes, and generates reference documents (W-2, W-3, Schedule H) to guide your filings, but you are responsible for submitting forms and making deposits to the IRS and your state agency.
- Can I switch from HomePay to CareTax mid-year?
- Yes. You can enter your year-to-date payroll figures into CareTax at any point in the year. Your prior provider should give you a record of wages paid and taxes withheld so you can continue accurately.
New here? See state guides, the glossary, or our methodology.