Why Is There No Federal Income Tax on My Nanny’s Paycheck? 2026 Withholding Thresholds Explained
If you run payroll for a nanny, caregiver, or other household employee, you may have noticed that some paychecks show $0 for federal income tax (FIT) withholding. This is one of the most common questions we hear from household employers, and the answer is simpler than you might think: it is how the IRS payroll withholding system is designed to work.
Federal income tax withholding is not the same as Social Security and Medicare taxes (FICA). FICA is withheld from the very first dollar your employee earns. Federal income tax, on the other hand, does not start being withheld until your employee’s wages exceed a specific threshold based on their W-4 filing status. For many household employees, especially those working part-time or moderate hours, wages simply do not reach that threshold.
How Payroll Withholding Works
Every paycheck, your payroll system uses the IRS Publication 15-T wage-bracket tables to calculate federal income tax withholding. The calculation is based on the employee’s W-4 form, specifically their filing status (Single, Married Filing Jointly, or Head of Household). If your employee only filled out Step 1 of the W-4 and left Steps 3 and 4 blank, the system uses the standard deduction built into the withholding tables.
The key point: the IRS does not withhold federal income tax until wages exceed the per-pay-period equivalent of the standard deduction. If your employee earns below that line each pay period, their federal income tax withholding will be $0. This is correct behavior, not a payroll error.
2026 Federal Income Tax Withholding Thresholds (Weekly Payroll)
Based on the 2026 IRS Publication 15-T wage-bracket method, here are the approximate thresholds where federal income tax withholding begins for weekly payroll. These assume the employee completed only Step 1 of their W-4 (filing status), with no dependents or additional adjustments.
Single
Annual wages up to approximately $15,800 / Weekly wages up to approximately $303.85
FIT withholding begins at approximately $303.86 per week
Head of Household
Annual wages up to approximately $23,700 / Weekly wages up to approximately $455.77
FIT withholding begins at approximately $455.78 per week
Married Filing Jointly
Annual wages up to approximately $31,200 / Weekly wages up to approximately $600.00
FIT withholding begins at approximately $600.01 per week
How 2026 Compares to 2025
The zero-FIT withholding thresholds increased modestly for 2026, reflecting inflation adjustments to the standard deduction that flow into the Publication 15-T wage-bracket tables.
Single: $288.46/week in 2025 vs. $303.85/week in 2026
Head of Household: $432.69/week in 2025 vs. $455.77/week in 2026
Married Filing Jointly: $576.92/week in 2025 vs. $600.00/week in 2026
What This Means in Practice
For 2026, many nannies and household employees earning under approximately $16,000 (single), $24,000 (head of household), or $31,000 (married filing jointly) per year may see $0 federal income tax withheld on their paychecks. This is normal and expected based on IRS withholding tables.
It is important to understand that this applies to payroll withholding, not to the employee’s total tax liability. Your employee may still owe federal income tax when they file their annual tax return, depending on their complete financial picture including other income, deductions, and credits.
What Can Increase the Zero-FIT Range Even Further?
The thresholds above assume the employee’s W-4 has only their filing status filled in (Step 1), with no dependents entered in Step 3 and no other adjustments in Step 4. If your employee claims dependents on their W-4, the zero-FIT threshold goes up even further. For example, a married employee who claims children in Step 3 of their W-4 could earn significantly more before any federal income tax is withheld.
Federal Income Tax Is Not the Same as FICA
A common source of confusion is mixing up federal income tax withholding with Social Security and Medicare taxes (FICA). These are two completely different things on a paycheck. FICA taxes (7.65% from the employee and 7.65% from the employer, totaling 15.3%) are withheld from the very first dollar of wages with no threshold or exemption. Federal income tax withholding, by contrast, only kicks in after wages exceed the filing-status-based threshold described above. So even when you see $0 for federal income tax, the paycheck will still show deductions for Social Security (6.2%) and Medicare (1.45%).
Important Points to Remember
Withholding is not the same as tax owed. Even if your employee’s paycheck shows $0 federal income tax withheld, they may still owe tax when they file their annual return. This depends on their complete tax situation, including income from other jobs, a spouse’s income, investment income, and other factors.
Multiple income sources change the picture. If your employee or their spouse has other jobs or income, federal income tax withholding may start earlier or the employee may want to adjust their W-4 to avoid owing a large amount at tax time.
Household employers are not required to withhold FIT. Unlike FICA taxes which are mandatory once you cross the $3,000 household employer threshold for 2026, federal income tax withholding for household employees is technically voluntary. You only need to withhold FIT if your employee requests it by submitting a W-4. However, most payroll systems (including Nest Payroll) process FIT withholding based on the employee’s W-4 as a standard part of payroll.
The IRS Tax Withholding Estimator can help. If your employee is concerned about having too little or too much withheld, the IRS offers a free Tax Withholding Estimator at irs.gov that helps them determine the right W-4 settings for their situation.
See It in Action with Our Paycheck Calculator
Want to see exactly how federal income tax withholding is calculated for your employee’s wages? Try our free Paycheck Calculator to enter your employee’s pay rate, filing status, and hours to see a full breakdown of taxes, including when FIT withholding kicks in.
The information provided on this page is general in nature. This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult an attorney or financial advisor for your specific situation.
Sources
IRS Publication 15-T (Federal Income Tax Withholding Methods)
IRS Publication 926 (Household Employer’s Tax Guide)