PA · State Guide · Tax year 2026

Pennsylvania nanny tax guide

Everything you need to pay a nanny, caregiver, or household employee legally in Pennsylvania— 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)

3.82%

On first $10,000

SDI

None

PFML

None

State income tax

3.07%

Flat rate

Minimum wage

$7.25/hr

Workers' comp

Not required

Quick Facts

ItemValue
Minimum Wage$7.25/hr
Pay FrequencyTwice monthly
Overtime Rules1.5x after 40 hrs/week; live-in exempt
Record Retention4 years

Unemployment Insurance

Registration: Register online

New Hire Reporting

Deadline: Within 20 days of hire

Report Online: File report

Special Requirements

Philadelphia requires written employment contract (signed by both parties); Philadelphia rest periods: 10 min/4 hrs + 30 min/5 hrs; live-in: max 6 consecutive days

Local Taxes

LocalityTax TypeRateNotes
Various municipalitiesLocal EIT and LST--Local earned income tax and local services tax vary by municipality

Required Forms

Pennsylvania 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 Pennsylvania?
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. Pennsylvania state unemployment kicks in once you exceed the state's wage threshold — typically the first $10,000 of wages.
What is the Pennsylvania SUI rate for a new household employer?
New household employers in Pennsylvania start at 3.82%, applied to the first $10,000 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
How much state income tax do I withhold for a Pennsylvania nanny?
Pennsylvania applies a flat 3.07% state income tax. You withhold this from each paycheck after applying any state standard deduction or exemptions based on your employee's state withholding certificate.
What forms do I need to file for a household employee in Pennsylvania?
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 Pennsylvania: 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 Pennsylvania state portals.