Family Caregiver Taxes and Employment in Texas

When you employ a family member as your household caregiver in Texas, your caregiver's age and/or their relationship to you may mean certain federal and Texas taxes apply a little differently. We've broken down these differences below — along with the state-specific employment requirements you'll want to know — so you always know what's going on with your employee's payroll.

Tax exemptions

Requirements and rates vary by state and are subject to change. The information below is current as of 2026.

Federal taxes

FICA (Social Security and Medicare) and FUTA (Federal Unemployment Tax) may apply a little differently based on your caregiver's age and family relationship to you.

Caregiver relationship	FICA (Social Security and Medicare)	FUTA (Federal Unemployment)
A minor under 18 who isn't your child	Exempt (until age 18)	Applies
Your child, currently under 21	Exempt (until age 21)	Exempt (until age 21)
Your spouse	Exempt	Exempt
Your parent	Usually exempt (see parent-childcare exception)	Exempt

When your caregiver passes one of the age thresholds, we'll automatically update how their wages are taxed based on the information in your account, and email you in advance. For the full federal breakdown, see How federal tax exemptions work for family caregivers.

Texas state taxes

Texas mirrors the federal family caregiver exemption exactly. The only state-level employer tax in Texas is the Texas Unemployment Tax (UI), administered by the Texas Workforce Commission. Texas has no state income tax, no state disability insurance, and no state paid family leave program.

Caregiver relationship	Texas UI
A minor under 18 who isn't your child	Exempt (until age 18)
Your child, currently under 21	Exempt (until age 21)
Your spouse	Exempt
Your parent	Exempt

Disclaimer: This information is provided for general educational purposes and should not be considered tax, legal, financial, or human resources advice. State-specific employment requirements (such as minimum wage, overtime, and workers' compensation) for this state are still being finalized. For questions about how family caregiver relationships impact your specific tax and employment obligations, we recommend speaking with a qualified tax professional or attorney.