DC · State Guide · Tax year 2026

District of Columbia nanny tax guide

Everything you need to pay a nanny, caregiver, or household employee legally in District of Columbia— the rates CareTax uses to calculate your pay runs, the forms you'll file, and the state portals you'll file them through.

SUI (new employer)

2.7%

On first $9,000

SDI

None

PFML

0.75%

No wage cap

State income tax

Progressive

Bracketed

Minimum wage

$17.50/hr

Workers' comp

Required

Quick Facts

ItemValueNotes
Minimum Wage$17.50/hr$17.50/hr; increasing to $17.95 (July 1, 2025)
Pay FrequencyTwice monthly; max 10 days after period end
Overtime Rules1.5x after 40 hrs/week; live-in exempt
Record Retention3 years

State Income Tax

Withholding Form: D-4

Unemployment Insurance

Registration: Register online

Workers' Compensation

Threshold: 240+ hrs in any calendar quarter

Paid Sick Leave

Accrual Rate: 1hr/87hrs worked

Annual Cap: 3 days/year

Yes -- 1hr/87hrs worked; 3 days/year cap; carryover required; Yes -- pregnancy 2wks; bonding 12wks; family care 12wks; own health 12wks

New Hire Reporting

Deadline: Within 20 days of hire

Special Requirements

Non-residents (VA/MD) generally exempt from DC income tax with D-4A; wage theft prevention notice required (English/Spanish); meal deductions allowed ($2.12/meal); minimum 4-hr pay for 4+ hr shifts

Tax Reciprocity Agreements

With StateDescriptionForm Required
VAVA residents generally exempt from DC income taxD-4A
MDMD residents generally exempt from DC income taxD-4A

Required Forms

Form D-4

District of Columbia state income tax withholding form

Purpose: Employee completes for state tax withholding

District of Columbia state form

Purpose: State compliance

Key Deadlines

DeadlineDateDescriptionFrequency
New Hire ReportingWithin 20 days of hireReport new employees within 20 days to the stateat-event

State Agencies

Sources

Frequently asked

Do I owe nanny tax in District of Columbia?
If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. District of Columbia state unemployment kicks in once you exceed the state's wage threshold — typically the first $9,000 of wages.
What is the District of Columbia SUI rate for a new household employer?
New household employers in District of Columbia start at 2.7%, applied to the first $9,000 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
Does District of Columbia require Paid Family and Medical Leave (PFML)?
Yes. District of Columbia requires PFML contributions totaling 0.75% of wages. The employee share is 0% and the employer share is 0.75%.
How much state income tax do I withhold for a District of Columbia nanny?
District of Columbia uses progressive tax brackets. Your employee's state income tax withholding depends on their expected annual wages and filing status per their state withholding certificate. CareTax's calculator handles bracketed withholding automatically for every pay run.
What forms do I need to file for a household employee in District of Columbia?
Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In District of Columbia: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the District of Columbia state portals.