How much does a nanny share cost?

You may have heard that sharing a nanny can be a great way to save money on child care. It’s true! A nanny share often costs less than paying for a traditional child care center or for a private nanny, but how much money might a nanny share save you? Here, discover what rates nannies are posting and learn how to determine a fair proposed rate for cost-effective nanny share.

The cost of a nanny vs. a nanny share

First, consider what you might pay for a nanny to care for one child:

According to the Care 2024 Cost of Care Survey, parents posted rates for nannies that average $766 a week, or about $39,832 per year, for full-time work. This can, of course, vary based on where you live, what the nanny is hired to do and how much experience they bring to the position.

Next, compare posted nanny rates to how much you might spend on a nanny share:

The average cost of sharing a nanny is about two-thirds what one might typically pay to have their own nanny. For example, paying two-thirds of a proposed rate of $39,832 per year means you could pay about $26,555 per year by choosing a nanny share.

Now here’s how much you could save by choosing a nanny share:

According to the Care 2024 Cost of Care survey, parents posted rates for nannies that average $766 per week for one child — and that average continues to rise. Two-thirds of a proposed rate of $766 is about $511, which could add up to about $246 in savings a week, about $1,063 in savings a month or $12,758 in savings a year, if you chose to share a nanny with another family.

How do 2 families share the cost of a nanny?

Sharing a nanny usually means the two families involved split their nanny’s hourly fee at approximately “25-35% less than what they normally make,” according to Lora Brawley, a 30-year nanny veteran and consultant and trainer at Nanny Care Hub in Federal Way, Washington. (Though, she notes, with the recent increased demand for nannies, some are charging more — up to 75% of their typical rate.)

An example using the standard two-thirds rate: The asking pay rate for a nanny in Denver averages $22.03 per hour working for one family. In a nanny share, each family could pay about $15 an hour (two-thirds of $22.03, rounded to the nearest dollar), totaling $30 an hour for the nanny. Proposed rates, as always, will vary greatly depending on where you live.

Depending on your needs and the needs of your share family, there are many other factors to consider when calculating the overall cost of a nanny share. We’ve outlined a few of the more common ones in the following section.

Factors that contribute to the cost of a nanny share

While every nanny share is unique, here are a few of the more common factors that could contribute to the cost:

• How many children will nanny watch? If a nanny’ charges’s asking rate is $18 per hour for one child and $20 per hour for two, the nanny share families may opt to pay $10 per hour each. However, if either of the children is an infant or has allergies or special needs, this may mean additional work for the nanny, and that parent may consider paying a little more than the other.
• Will you need to buy extra supplies or gear? Consider whether you and the other family will need to buy extra equipment or supplies, such as double strollers or organic food. If you stick to one hosting location, you’ll only need one of everything, which could save you money. One group of parents in a nanny share decided that if one of them bought an item for the group, they’d add it to a shared expense list and then split it up once per fiscal quarter.
• Are you offering your nanny benefits? One Bay Area mom says offering two weeks of paid vacation and paid holidays is standard practice there, while a Portland, Oregon mom pays sick leave but does not pay her nanny for time off.
• Does your nanny have extra skills or certifications? A nanny who has extra skills, experience or safety certifications on their resume typically will charge a little more for their services. (And it’s only fair for them to do so because those are added benefits for your child.) So, if it’s really important for you to have a nanny who speaks Mandarin, or who has a water-safety certification, then consider paying a little more than you normally would.
• Will you have your nanny help around the house? Are you considering having the nanny take on extra tasks outside of her traditional child care job? We’re talking about things like laundry, walking the dog, running errands or cleaning the house. If you’re asking her to do more than just take care of the children, it’s only fair that you pay her more for that work, too.
• Will the nanny drive the children? Some families choose to have their nanny drive the children to and from school, practices and rehearsals. Typically, they’ll decide to reimburse their nanny for the cost of car travel. Each year, the IRS issues a standard mileage reimbursement figure for business. The 2024 rate is 67 cents per mile. Here are some ways to reimburse a nanny for gas and mileage.
• Have you thought about nanny taxes? Nanny taxes are a combination of federal and state taxes that families are expected to pay when they pay a nanny — or any household employee — $2,700 or more in a calendar year. Make sure to learn the unique payroll and tax rules to follow when you’re in a nanny share. You can also check out the nanny tax calculator for an easy way to estimate payroll costs, nanny taxes and possible tax breaks.

Once you’ve considered all the factors involved in the overall cost of a nanny share, you’ll be in a great position to come up with a budget and plan that respects what both families are comfortable spending.