Nanny vs. Daycare Cost Comparison
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We assume 40 hours a week for the nanny. Daycare is a flat monthly tuition, so the hours do not change tuition; they change the nanny’s cost and what a day of backup care costs.
Nanny hourly rates: Care.com’s average nanny rate by state (the average starting rate nannies post on Care.com; as of October 2025). A second child adds roughly $2–$4/hour per Care.com; we use $3.
Daycare prices: computed from Shortlist’s own source-verified provider prices. Each child is priced at the median monthly tuition full-time centers publish for that age, where at least 10 centers with a source publish one: . An age below that uses the median of every age’s published price together: . Most programs do not publish a price at all, so these medians rest only on the ones that do.
Employer taxes: IRS Publication 926 (2026), Household Employer’s Tax Guide. The employer pays 7.65% of wages (6.2% Social Security, 1.45% Medicare) and federal unemployment tax at a net 0.6% on the first $7,000 of each employee’s wages. State unemployment tax is also owed and is not included, because its rate varies by state and employer.
Workers’ comp, Washington: not required for “a domestic servant in a private home by an employer who has less than two employees regularly employed forty or more hours a week” (RCW 51.12.020), so $0. Other states set their own rules; enter a quote.
Nanny sick days, Washington: a nanny is a domestic worker (RCW 49.96.010) and accrues “at least one hour of paid sick leave for every forty hours worked” (RCW 49.46.210). Over 50 working weeks that is 6.25 days; the calculator assumes all of it is used and values each day as a day of backup care. Not counted for other states.
Kid sick days, commute, payroll service, a bonus, replacing a nanny, and classes: Shortlist has no source for these, so none is filled in. Each counts only when you enter your own figure.
Closure days and backup care, Seattle only. These are assumptions, not measured figures, and each can be replaced with your own above. Days: 5, the most professional training days a year Washington’s subsidy program pays a provider to close for (WAC 110-15-0036). The 11 state holidays in the same rule are assumed to be your family’s days off too, so they are not counted, and neither are winter, spring or summer breaks: no source says how long they run, so ask each program for its calendar. A day of backup care is valued two ways and the total uses the midpoint. Low: what the state pays a King County center for a full day of care, $135.23 for an infant, $120.91 for a toddler and $106.82 for a preschooler (DCYF Working Connections center rates, Region 4, effective July 1, 2026). High: a sitter paid Seattle’s 2026 minimum wage, $21.30 an hour, for your hours each day (Seattle Office of Labor Standards). Shortlist has no sourced figures for other cities, so none are added there unless you enter your own.
Application fee, Seattle only: the median published application fee of Seattle-area centers, $105, from 126 centers that publish one (counted September 30, 2026), added once per child. Shortlist has not measured it for other cities, so none is added there. Supply fees are not included: Shortlist does not collect them. Ask each program.
How much does a nanny cost compared to daycare?
They are priced differently, so the calculator converts both to an hourly figure for the city you picked. The nanny rate is Care.com’s average nanny rate by state — a state-wide average, not a rate for your city. The daycare rate is Shortlist’s median of the published tuition in your city, converted using each program’s published hours. Daycare is usually cheaper on paper, and the gap narrows or reverses once sick days, closures, backup care and a second child are counted.
When is a nanny cheaper than daycare?
Usually with two or more children. A nanny’s hourly rate rises only modestly for a second child — Care.com puts it at roughly $2–$4 an hour, and this calculator uses $3 — while a second daycare place is close to a second full tuition. Change the number of children above and the comparison recalculates.
Do I have to pay taxes for a nanny?
Yes. Pay a household employee $3,000 or more in cash wages in 2026 and you owe Social Security and Medicare tax; pay $1,000 or more in any calendar quarter and you owe federal unemployment tax. The employer’s share of Social Security and Medicare is 7.65% of wages. Federal unemployment tax is a net 0.6% on the first $7,000. All of these figures are from IRS Publication 926 for 2026. State unemployment tax is also owed, at a rate that varies, and this calculator does not include it.
What is the real cost of a nanny after taxes?
Higher than the wage. On top of the hourly rate the calculator adds the employer’s 7.65% share of Social Security and Medicare and federal unemployment tax. Workers’ comp is $0 in Washington for one nanny; elsewhere, and for a payroll service, enter your own quote. Switch “Employer taxes” off above to see the wage alone.
How many sick days does a nanny get?
In Washington, paid sick leave accrues at one hour for every 40 hours worked, under RCW 49.46.210, and a nanny is covered. Over 50 working weeks that comes to about six days. When the nanny is out, you need cover, so for Washington the calculator values each of those days as a day of backup care. Other states set their own minimum, and the calculator does not count one for them.
How many days a year does daycare close?
It varies by program, and no published study counts it. Centers close for holidays, staff training and seasonal breaks, and unexpectedly for illness or weather. For Seattle the calculator counts 5 training days, the most Washington’s subsidy program pays a provider to close for, and assumes your family is off on the 11 state holidays. Seasonal breaks are not counted. Ask each program for its calendar and enter the days above.
How much does backup childcare cost?
Shortlist has no measured backup-care price. For Seattle the calculator values a day two ways: what the state pays a King County center for a full day ($120.91 for a toddler, from July 1, 2026) and a sitter at Seattle’s minimum wage ($21.30 an hour) for your hours. It uses the midpoint and shows both. Enter your own daily rate above to replace them.
How much does infant daycare cost?
Usually more than care for an older child, because infant rooms need the most staff per child. The calculator prices each child at the median full-time tuition that centers in your city publish for that age, wherever at least 10 centers publish one. Where fewer do, it uses the city’s median across all ages and says so. Ask any program you are considering for its own infant tuition and enter it as the daycare rate.
What is a nanny share, and how much does it cost?
A nanny share is two families employing one nanny to care for their children together, splitting a single higher hourly rate. Shortlist has no source-verified data on share rates, so this calculator does not model one and we do not publish a share figure.
Is a nanny share a good idea?
It works when both families have compatible schedules and enough slack to absorb the other family’s holiday or illness. The risk is the exit: if one family leaves, the other usually carries the whole cost until a replacement is found. Because we have no sourced share rates, we do not publish a saving figure to weigh against that risk.