We show results of nanorheological studies of different concentrations of xanthan (non-Newtonian fluid) in water using magnetic nanoparticles (MNPs) together with the AC susceptibility (ACS) vs frequency method. For comparison we also show the ACS response for different concentrations of glycerol in water (Newtonian fluid). The ACS response is measured, and the data is modelled using dynamic magnetic models and different viscoelastic models. We study the ACS response (in-phase and out-of-phase ACS components) at different concentrations of xanthan in water (up to 1 wt% xanthan) and with a constant concentration of MNPs. We use MNP systems that show Brownian relaxation (sensitive to changes in the environmental properties around the MNPs). ACS measurements are performed using the DynoMag system. The Brownian relaxation of the MNP system peak is shifting down in frequency and the ACS response is broadening and decreases due to changes in the viscoelastic properties around the MNPs in the xanthan solution. The viscosity and the storage moduli are determined at each excitation frequency and compared with traditional macroscopic small amplitude oscillatory shear rheological measurements. The results from the traditional rheological and nanorheological measurements correlate well at higher xanthan concentration.