Yes, minors do pay Social Security tax. Wages a minor earns as an employee are subject to Social Security and Medicare taxes (together called FICA) at the same 7.65% rate that applies to adult workers, with no minimum age.1Internal Revenue Service. Publication 926 (2026), Household Employer’s Tax Guide Several important exemptions can eliminate that tax entirely, though, especially for children working in a family business or doing casual household work.
The employee’s 7.65% breaks down to 6.2% for Social Security and 1.45% for Medicare. The employer pays a matching 7.65%, so the total tax on each paycheck is 15.3%.2Social Security Administration. What Are FICA and SECA Taxes? Whether a minor actually owes FICA depends less on age and more on who the employer is and what kind of work the child is doing.
Working for a Parent’s Business
This is the exemption that matters most to families. When a child under 18 works for a parent’s sole proprietorship, their wages are completely exempt from Social Security and Medicare taxes.3Internal Revenue Service. Family Employees The exemption covers both the employee and employer sides, and it eliminates federal unemployment tax (FUTA) as well. The same rule applies to a partnership where both partners are parents of the child.4Office of the Law Revision Counsel. 26 U.S. Code 3121 – Definitions
A single-member LLC that hasn’t elected corporate tax treatment is generally treated as a sole proprietorship for federal employment tax purposes, so the exemption should apply in that situation too. But the structure of the business matters. If the parent’s business is a corporation, the exemption disappears. The corporation is a separate legal entity, and the IRS treats the child as any other employee: FICA, income tax withholding, and FUTA all apply.3Internal Revenue Service. Family Employees
There’s a separate and often overlooked rule for domestic work. If a child does household chores, yard work, or similar tasks in a parent’s private home, those wages are exempt from Social Security and Medicare tax until the child turns 21, not 18.4Office of the Law Revision Counsel. 26 U.S. Code 3121 – Definitions That three-year extension can create real savings for a college-age child still living at home.
Babysitting and Household Work for Other Families
Minors who babysit, mow lawns, or do other household work for someone other than a parent get a different form of protection. In 2026, a household employer only owes FICA on cash wages of $3,000 or more paid to a single worker during the year.5Social Security Administration. Employment Coverage Thresholds Below that threshold, no Social Security or Medicare tax is due on either side.
Even above $3,000, a second exemption often applies. If a household employee is under 18 at any point during the year, their wages don’t count toward FICA as long as household work is not their principal occupation. For students, the IRS automatically treats household work as not their principal occupation.1Internal Revenue Service. Publication 926 (2026), Household Employer’s Tax Guide So a 16-year-old babysitter who’s still in school stays exempt even if she earns well over $3,000 from one family. The exemption only fails if a minor has left school and household work is genuinely their main job.
Working for a School or College
Minors employed by the same educational institution where they’re enrolled can qualify for the student FICA exception. To qualify, the student must be enrolled at least half-time, and the work must be incidental to their studies. The student also cannot be a career or professional employee of the school.6Internal Revenue Service. Student FICA Exception
This typically covers work-study jobs, campus dining positions, and library roles. It applies during the academic term and short breaks of a few weeks, but generally not through summer employment when the student isn’t actively enrolled. A 17-year-old working part-time in a high school’s administrative office could be exempt from FICA on those wages.
Newspaper Carriers Under 18
Federal law treats newspaper delivery as a form of direct selling rather than traditional employment when three conditions are met: pay is tied to sales or output rather than hours, there is a written contract, and that contract states the worker won’t be treated as an employee for tax purposes.7Office of the Law Revision Counsel. 26 U.S. Code 3508 – Treatment of Real Estate Agents and Direct Sellers When those conditions apply, no FICA is withheld.
For carriers under 18, the exemption goes further: delivery income is also excluded from self-employment tax, so young carriers owe neither. Once a carrier turns 18, self-employment tax applies to net earnings of $400 or more, even though the direct-seller classification still keeps them outside the FICA withholding system.
Self-Employed Minors Pay a Different Tax
A minor who freelances, runs an online business, or does contract work isn’t an employee, so FICA doesn’t apply. Self-employment tax does. Once net earnings reach $400 for the year, the self-employed owe 15.3%: 12.4% for Social Security and 2.9% for Medicare, covering both sides of what an employer and employee would split.8Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)
Age doesn’t change any part of the calculation. As the IRS puts it, self-employment tax applies no matter how old you are.9Internal Revenue Service. About Schedule SE (Form 1040), Self-Employment Tax A self-employed minor calculates the tax on Schedule SE and files it with Form 1040. One offset worth knowing: half of the self-employment tax is deductible when calculating adjusted gross income, which lowers the income tax bill.8Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)
Why Those Contributions Aren’t Wasted
FICA money leaving a paycheck feels like it’s just gone, but each dollar goes on a permanent record with the Social Security Administration. In 2026, every $1,890 in earnings generates one Social Security credit, up to four credits per year.10Social Security Administration. Quarter of Coverage A teenager earning $7,560 or more in a year banks the full four.
Retirement benefits require 40 credits, or roughly ten years of work. But the credits count for more than retirement. A young person who becomes disabled before age 24 only needs six credits earned in the three years before the disability began to qualify for Social Security disability benefits.11Social Security Administration. How You Earn Credits For a teenager who has worked part-time through high school, those credits can be the difference between qualifying for benefits and having no coverage at all.
How the Tax Gets Paid
For minors who work as employees, there’s nothing to do. The employer withholds the 7.65% share automatically and sends it to the IRS along with the matching employer share.12Internal Revenue Service. Depositing and Reporting Employment Taxes A Form W-2 arrives at year’s end showing total wages and the Social Security and Medicare tax withheld.13Internal Revenue Service. About Form W-2, Wage and Tax Statement
Self-employed minors handle payment themselves. The IRS expects estimated tax payments through the year, usually quarterly using Form 1040-ES, with due dates in April, June, September, and the following January.14Internal Revenue Service. Estimated Taxes Keeping records of income and expenses through the year makes the Schedule SE calculation straightforward at filing time.