In most cases, yes — minors do pay Social Security and Medicare taxes on their wages at the same 7.65% rate adults pay, with the employer withholding 6.2% for Social Security and 1.45% for Medicare from each paycheck and matching that amount.1Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates A handful of specific exemptions can spare a minor from FICA, but they depend on who the employer is, what kind of work is involved, and sometimes the child’s age or earnings. Being under 18 by itself is not one of them.
The General Rule for a Working Teenager
A 15-year-old bagging groceries has the same FICA obligations as the 40-year-old cashier next to them. The employer deducts 6.2% for Social Security and 1.45% for Medicare, contributes an identical 7.65%, and sends both shares to the IRS.1Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates
There is no standard deduction or personal exemption for FICA the way there is for income tax. Even a minor who earns too little to owe any income tax will still see Social Security and Medicare taken out of every paycheck, unless one of the exemptions below applies.
Working for a Parent’s Business
The most useful exemption for families involves a child working for a parent. If the business is a sole proprietorship, or a partnership in which every partner is a parent of the child, wages paid to a child under 18 are not subject to Social Security or Medicare tax.2Internal Revenue Service. Family Employees The day the child turns 18, FICA withholding starts on all wages going forward.
The exemption vanishes if the business is set up as a corporation, an estate, or a partnership that includes anyone besides the child’s parents.2Internal Revenue Service. Family Employees Parents running the business through an LLC should check how the LLC is classified for federal tax purposes. A single-member LLC treated as a sole proprietorship qualifies; one taxed as a corporation does not.
One detail worth flagging: the exemption only covers FICA. Federal income tax withholding still applies to the child’s wages.3Internal Revenue Service. Tax Treatment for Family Members Working in the Family Business A child earning more than the standard deduction will owe income tax even though Social Security and Medicare were not withheld.
Babysitting, Nannying, and Other Household Work
Household workers follow separate rules with two layers of exemption that matter for minors.
First, a cash-wage threshold applies to household employees of any age. For 2026, if a household worker earns less than $3,000 in cash wages from a single household employer during the calendar year, neither side owes FICA.4Internal Revenue Service. Publication 926 (2026), Household Employer’s Tax Guide The threshold adjusts annually.
Second, even above $3,000, a household employee under 18 is exempt from FICA as long as household work is not their principal occupation. A high school student who babysits on weekends qualifies, because their primary role is being a student.5Internal Revenue Service. Topic No. 756, Employment Taxes for Household Employees Someone 18 or older does not get this break, even if they are also enrolled in school.
A separate rule applies when a parent hires their own child for household work: wages paid to a child under 21 are exempt from both FICA and federal unemployment tax.4Internal Revenue Service. Publication 926 (2026), Household Employer’s Tax Guide The under-21 cutoff here is higher than the under-18 cutoff that applies to unrelated household workers.
Newspaper and Magazine Delivery
Federal law exempts anyone under 18 who delivers or distributes newspapers or shopping news directly to consumers — the classic house-to-house route.6Office of the Law Revision Counsel. 26 USC 3121 – Definitions The exemption covers the delivery itself and incidental tasks such as assembling the papers. It does not cover regional distribution to stores or drop points. Once the carrier turns 18, FICA applies to future earnings.
Student Workers at Their Own School
Students who work for the school, college, or university where they are enrolled and regularly attending classes can qualify for a FICA exemption under IRC Section 3121(b)(10).7Internal Revenue Service. Student FICA Exception The test is whether the educational relationship is the primary one, meaning the job is incidental to pursuing a course of study rather than the other way around.8Internal Revenue Service. Student Exception to FICA Tax
The student generally needs to be enrolled at least half-time.7Internal Revenue Service. Student FICA Exception The exemption also does not apply during extended breaks. If a student keeps working at the campus bookstore over a summer break longer than five weeks without being enrolled in summer classes, FICA applies to those weeks. It resumes once the student re-enrolls for the next term. This is why summer paychecks sometimes come out smaller than expected.
Self-Employed Minors
A minor who works as an independent contractor rather than an employee — mowing lawns, freelancing online, selling goods at a market — has no employer to split FICA with. They owe self-employment tax, which covers both the employee and employer shares: 12.4% for Social Security and 2.9% for Medicare, totaling 15.3%.9Internal Revenue Service. Topic No. 554, Self-Employment Tax The obligation starts once net self-employment earnings reach $400 for the year.
Self-employed minors report these earnings on Schedule SE with Form 1040. They can deduct half of the self-employment tax when calculating adjusted gross income, which offsets part of the sting of paying both halves.9Internal Revenue Service. Topic No. 554, Self-Employment Tax
Because no one is withholding taxes along the way, a self-employed minor who owes enough may need to make quarterly estimated payments. The deadlines are April 15, June 15, September 15, and January 15 of the following year.10Internal Revenue Service. When Are Quarterly Estimated Tax Payments Due? You can generally skip them if you expect to owe less than $1,000 in total tax for the year.11Internal Revenue Service. Underpayment of Estimated Tax by Individuals Penalty For most minors with modest side income, that safe harbor keeps quarterly filings off the table.
The IRS does not extend a grace period for age. A minor who clears the $400 threshold and ignores the return owes the same failure-to-file penalty as any other taxpayer: 5% of the unpaid tax per month, up to 25%.12Internal Revenue Service. Failure to File Penalty
Getting FICA Back If It Was Withheld by Mistake
If a minor qualifies for one of the exemptions above but the employer withheld FICA anyway, the money is recoverable. Start by asking the employer to correct the error and issue an adjusted W-2. If the employer refuses or is out of business, the minor or a parent can file Form 843, Claim for Refund and Request for Abatement, directly with the IRS, attaching copies of the W-2 showing the incorrect withholding.13Internal Revenue Service. Topic No. 608, Excess Social Security and RRTA Tax Withheld
You cannot simply claim the excess FICA as a credit on your annual income tax return when a single employer made the mistake. The refund has to go through the employer or through Form 843. Waiting until you file and hoping the IRS sorts it out will leave the money sitting unclaimed.
The Upside of Paying In Early
Every dollar subject to Social Security tax earns credits toward future retirement, disability, and survivor benefits. In 2026, you earn one credit for every $1,890 in covered earnings, up to four credits per year.14Social Security Administration. Quarter of Coverage It takes 40 credits, roughly ten years of work, to qualify for retirement benefits. A teenager who earns $7,560 or more in 2026 picks up all four credits for the year.15Social Security Administration. Social Security Credits Starting the clock early means reaching that 40-credit threshold sooner in adulthood, which matters most for anyone who later takes time away from the workforce.