Nanny Cost Guide: State-by-State Pay Breakdown 2025

Published: April 1, 2025

Alicia Garibaldi

Key Takeaways

The cost of hiring a nanny can be daunting, especially for first-time parents. But the right nanny is worth their weight in gold. They’ll create a supportive environment where you can maintain your professional commitments while making sure your children receive excellent care.

In this article, we’ll break down everything you need to know about how much a nanny costs—from national averages to state-specific rates—so you can make the most informed decision for your family’s needs.

[TOC]How Much Does a Nanny Cost?

According to UrbanSitter, the national average hourly rate for a nanny is $23.61, with an annual average salary of approximately $49,000. That’s no small expense. However, with the right perks and thorough research, you can create a competitive package that aligns with your nanny’s experience, responsibilities, and the cost of living in your area.

Hourly vs. Salary Pay: What’s Best for Your Nanny?

Unless you’re in a state where a domestic worker must be paid by the hour, you can elect to pay your nanny either by the hour or a fixed annual salary. It’s important to check state by state to see what rates apply. Poppins Payroll’s Resources by State can help guide your choice, and the Fair Labor Standards Act (FLSA) outlines how to comply with minimum wage and overtime laws.

Paying Hourly

Paying by the hour is the most common choice and is an excellent option for families when weekly schedules and needs fluctuate. It simplifies compliance with overtime laws, too. Under the FLSA, nannies must be paid at least the local and state minimum wage and should accrue time and a half for any hours worked beyond 40 hours a week.

Paying Salary

For families with a more consistent schedule, a fixed salary can offer greater predictability. If you opt to pay your nanny a salary, document the number of hours the salary covers and the corresponding hourly rate in your written agreement. And remember – even if you choose to pay your nanny using a fixed salary, your nanny is always going to be considered a non-exempt employee which means that they are entitled to overtime pay in line with FLSA and state-specific overtime rules.

You can leverage tools like Poppins Sample Nanny Contract to create a contract. Remember to include overtime clauses to stay compliant. Check out our Common Nanny Payroll Questions to help you decide between hourly and salary pay.

[TOC]What Impacts Nanny Pay Rates?

Geography, training and certifications, education, experience, language skills, and responsibilities can heavily impact nanny salaries.

1. Nanny Experience and Certifications

Let’s break it down for you, along with some base experience and certifications to look out for. According to PayScale, nannies' pay varies considerably based on experience:

Entry-Level (0-2 years): Nannies in this category earn approximately 19% less than the average pay for nannies.
Early Career (2-5 years): These nannies earn about 8% less than the average.
Mid-Career (5-10 years): Their earnings are close to the average, with a slight decrease of about 2%.
Late Career (10-20 years): Nannies with this level of experience earn approximately 10% more than the average.
Experienced (20+ years): These nannies earn about 6% more than the average.

2. Certifications That Can Increase a Nanny’s Rate

Certain certifications and specialized training can add $1-3 per hhour to a nanny’s base rate. Some key certifications to look for include:

CPR and First Aid (Essential baseline certification)
Newborn Care Specialist
Sleep Training Certification
Positive Discipline Certification
Child Development Associate (CDA)
Early Childhood Education Degree (ECE) (*They may have certificates from institutes like Coursera or some states offer ECE credentials. Some institutes also allow for verification requests.)
Montessori or Waldorf Training

You may also want to look out for a ‘Special Needs Care Certification’ or even a nursing degree depending on your family's needs. To see a full breakdown of nanny certifications and their training, go to USNanny.org. They publish national standards and issues related to nanny, newborn, and infant care, along with the breakdown of professional nanny certifications.

Pro Tip: While higher qualifications mean higher rates, they also translate into enhanced care for your children and more peace of mind for you! Make sure you ask your nanny about certifications during the interview process.

3. Location and Cost of Living

Geographic location is one of the biggest factors on nanny costs. Reference a breakdown table further down in the article to compare nanny costs in top metros and states.

4. Schedule Demands

Overnight stays typically have additional flat fees between $100-200, and travel pay should also be handled differently to include working hours above and beyond the overnight portion. If you want your nanny to work certain holidays, those should also be paid out differently (read: at a higher rate) than regular working days.

5. Number and Ages of Children

Infant care often requires a more advanced skillset and attention to detail, making it more expensive than care for older, more independent children. Similarly, families with multiple children may see a per-child increase in rates.

6. Additional Skills

Nannies may also come with additional life skills that the whole family can benefit from: fluency in another language, musical abilities, or even an educational background – all of which could command higher rates. Most parents will agree that tutoring and enrichment activities are well worth the investment! There are also unique skills like self-defense training, culinary training, or house cleaning that can also benefit you and your child.

[TOC]Regional Nanny Cost Guide

When budgeting for nanny services, it’s important to consider regional variations in pay, which can vary significantly based on geographic location, living expenses, and demands for childcare.

Urban vs. Suburban Nanny Rates

Urban areas tend to command higher childcare rates due to increased living expenses when compared to rural or suburban areas. According to the U.S. Department of Labor’s National Database of Childcare Prices, the median annual cost for center-based infant care in very large counties (i.e., populations over 1 million) can cost more than double that in small counties (i.e., populations under 100,000).

Nanny Rates in 10 Major Cities

We’ve summarized data from UrbanSitter and pulled the average cost of childcare in 10 metropolitan areas across various states.

City	State	Hourly Rate	Monthly Salary
San Francisco	CA	$27	$4,667
Seattle	WA	$25	$4,517
Reno	NV	$23.50	$4,083
New York	NY	$23	$3,917
Austin	TX	$22	$3,917
Boston	MA	$22	$3,750
Washington	DC	$22	$3,750
Phoenix	AZ	$22	$3,750
Miami	FL	$21	$3,667
Portland	OR	$21	$3,667

State-by-State breakdown

Here’s a look at how UrbanSitter breaks down nanny pay rates across 22 states in the U.S. on an hourly and monthly salary basis.

State	Hourly Rate	Monthly Salary
CA	$27	$4,667
WA	$25	$4,417
NV	$23	$4,083
NJ	$23	$3,917
NY	$23	$3,917
TX	$22	$3,917
MA	$22	$3,750
DC	$22	$3,750
AZ	$22	$3,750
FL	$21	$3,667
OR	$21	$3,667
VA	$21	$3,667
CO	$21	$3,583
NC	$21	$3,583
HI	$21	$3,583
OH	$21	$3,583
IL	$20	$3,500
GA	$20	$3,500
MI	$20	$3,417
PA	$19	$3,333
MN	$19	$3,250
TN	$18	$3,167

Pay Differences by Nanny Type

The cost of hiring a nanny can vary significantly depending on the type of care you need and where you live. For example, families in major metropolitan areas like New York City might budget upwards of $150,000 annually for full-time, specialized care for infants or children with special needs.

However, monthly costs will depend on the agreed-upon hours and the specific type of care your family requires. A closer look at night nurses in large metros like New York and Los Angeles showed that specialized care for infants at night can cost between $35-60 and $42-70 per hour, respectively.

When budgeting for a nanny, consider the type of care your family requires and the associated costs in your area. This will help make sure you offer a competitive rate that attracts qualified candidates while meeting your family's needs.

[TOC]Additional Costs of Hiring a Nanny

Remember that the base salary is only part of the equation when budgeting for a nanny. Here are some additional costs to consider:

Taxes and Payroll Fees: Employers are responsible for paying nanny taxes. Check out our payroll guide for more information.
Insurance requirements: Some families assist the employee with health insurance and/or procure worker’s compensation insurance as part of the benefits package.
Paid Time Off (PTO) and Vacation Time: Vacation days, sick leave, and holidays should be considered.
Holiday Bonuses and Raises: Providing year-end or holiday bonuses is customary.
Transportation Allowances: Families often provide gas or transit stipends for commuting nannies.
Sick Time and Overtime: Many states require some allowance for paid sick time and expect to pay time-and-a-half for hours worked beyond 40 hours/week.

Other areas to consider might be guaranteed hours, professional development, and severance pay. Some states also require benefits like worker’s compensation insurance and have specific policies on sick time and overtime work. For a comprehensive understanding, refer to the Poppins Nanny Payroll Guide and their Payroll b y State Resources for more info.

[TOC]How to Determine What to Pay a Nanny

Here are the six steps to guide you when determining the cost structure for your nanny:

1. Research your area’s average nanny rates (use online tools like UrbanSitter or nanny agencies).

2. Assess your family’s needs (e.g., full-time, part-time, live-in, night nurse, or specialized care).

3. Budget for additional expenses (taxes, tax credits, insurance, PTO, holidays, and bonuses).

4. Discuss expectations upfront (payment schedules, duties, and any benefits).

5. Be prepared to negotiate a fair wage that respects the nanny’s qualifications and your budget.

6. Leave room for bonuses and discussions for raises in the future to create long-term incentives to stick with your family.

7. Don’t lose sight of the peace of mind that you will receive if you have a happy employee caring for your special little one.

[TOC]How Often Should You Pay Your Nanny

Most families choose to pay their nannies either weekly or biweekly, typically based on their nanny’s preference. You may want to check state-specific laws on pay frequency since certain states, such as Maine and Arizona, prohibit paydays being more than 16 days apart.

[TOC]Childcare Tax Credits and Employer Benefits

While nanny pay can be a significant expense, there are government and employer initiatives designed to help working parents. For instance, as of 2025, parents may be eligible for a child-care tax credit of $3,000 for one child and $6,000 for two or more. Learn more about the child-care tax credit to see if your family and area apply for these benefits.

Many employers also offer access to Dependent Care Flexible Spending Accounts (FSAs), allowing parents to set aside pre-tax dollars to cover childcare costs. For 2025, households with a Dependent Care FSA can exclude up to $5,000 pretax dollars for childcare expenses. For more information on how FSAs work, check out Gusto’s article on employer childcare benefits.

In order to use the Dependent Care FSA, though, you’ll need to show documentation to the IRS, such as payroll receipts. In order to make the process of paying your nanny seamless, you can opt for a household employee payroll provider like Poppins Payroll.

Ready to get started? Here’s a 3-step checklist to help!

Document everything around pay in a nanny contract
Talk about the payment schedule with your nanny
Research how pay varies by state

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The content of this article is general and informational in nature and may not be appropriate for your specific circumstances. The information is not intended to provide legal or tax advice, and should not be relied upon without consulting with an attorney and/or tax professional.