Most U.S. workers must pay Social Security tax, but federal law does exempt a narrow set of people from paying into Social Security: members of qualifying religious sects, certain ordained clergy, students employed by the school they attend, some nonimmigrant visa holders, some state and local government employees covered by a public pension instead, and children under 18 working in a parent’s unincorporated business. Each exemption has strict conditions, and several require you to give up future benefits in exchange.
The Default Rule: Almost Everyone Pays
Under the Federal Insurance Contributions Act, every employee owes 6.2% of wages for Social Security, matched by another 6.2% from the employer.1Office of the Law Revision Counsel. 26 U.S.C. 3101 – Rate of Tax The tax is withheld automatically. You do not choose to participate.
If you work for yourself, the Self-Employment Contributions Act (SECA) makes you responsible for both halves. The Social Security portion is 12.4% of your net self-employment earnings, reported on Schedule SE with your annual return.2Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes) In 2026, the tax applies only to earnings up to $184,500; wages above that cap are not subject to the Social Security portion.
The exemptions below are the recognized ways out. If you do not fit one of them, you owe.
Members of Recognized Religious Sects
Internal Revenue Code Section 1402(g) allows an exemption for members of religious sects whose established teachings oppose accepting public or private insurance benefits, including Social Security. To qualify, all of the following must be true:3Office of the Law Revision Counsel. 26 U.S.C. 1402 – Definitions
- The sect has existed continuously since December 31, 1950.
- It has a longstanding practice of providing for its dependent members at a level the IRS considers reasonable for the group’s standard of living.
- You waive all rights to Social Security and Medicare benefits, both on your own record and on anyone else’s.
You apply by filing Form 4029, which requires your Social Security number, personal information, and a certification from an authorized representative of your religious group.4Internal Revenue Service. Form 4029 Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits If approved, you are exempt from both employee FICA and self-employment tax for Social Security and Medicare.
Clergy and Christian Science Practitioners
Ordained ministers, members of religious orders who have not taken a vow of poverty, and Christian Science practitioners can apply for a separate exemption under IRC Section 1402(e). This one covers only self-employment tax on ministerial earnings. Wages from non-ministerial work remain fully taxable.5Internal Revenue Service. About Form 4361, Application for Exemption From Self-Employment Tax for Use By Ministers, Members of Religious Orders and Christian Science Practitioners
To qualify, you must state that you are conscientiously opposed to public insurance, or opposed to it on religious grounds, and you must have informed your ordaining, commissioning, or licensing body of that opposition.3Office of the Law Revision Counsel. 26 U.S.C. 1402 – Definitions The application is Form 4361, and the deadline is strict: you must file by the due date, including extensions, of your tax return for the second year in which you had at least $400 in net self-employment earnings from ministerial services.6Internal Revenue Service. Form 4361 Application for Exemption From Self-Employment Tax for Use By Ministers, Members of Religious Orders and Christian Science Practitioners Miss it, and the exemption is gone for good.
Students Working at Their Own School
If you are enrolled at and regularly attending a school, college, or university, and that same institution employs you, wages from that job are generally exempt from Social Security and Medicare taxes under IRC Section 3121(b)(10).7Office of the Law Revision Counsel. 26 U.S.C. 3121 – Definitions The employment has to be connected to your enrollment. On-campus jobs such as library or research lab positions typically qualify; off-campus work with an unrelated employer does not.8Internal Revenue Service. Foreign Student Liability for Social Security and Medicare Taxes
Citizenship and immigration status do not affect eligibility as long as you meet the enrollment and employment tests. Keep current enrollment verification from your registrar in case an employer or the IRS asks for it. If FICA is withheld from qualifying wages in error, you can ask your employer for a refund or file Form 843 with the IRS.
Certain Nonimmigrant Visa Holders
Nonresident aliens on F-1, J-1, M-1, or Q-1 visas are exempt from Social Security and Medicare taxes on wages earned in the U.S., as long as the work is authorized by U.S. Citizenship and Immigration Services and consistent with the purpose of the visa.9Internal Revenue Service. Aliens Employed in the U.S. – Social Security Taxes Qualifying employment includes on-campus work, USCIS-authorized off-campus work, and practical training.
This exemption is tied to nonresident status, not to the visa forever. It ends when you switch to a nonexempt visa category or when you become a resident alien for tax purposes, which generally happens after five calendar years in the U.S. for students. It also does not extend to dependents on F-2, J-2, or M-2 visas. Keep your I-94 and visa records on hand to verify your status.
Some State and Local Government Employees
Under 26 U.S.C. § 3121(b)(7)(F), state and local government workers who are members of a qualifying public retirement system maintained by their employer are exempt from the Social Security portion of FICA.10Office of the Law Revision Counsel. 26 U.S.C. 3121 – Definitions Whether the exemption actually reaches your paycheck depends on your specific employer. Section 218 of the Social Security Act lets states voluntarily bring their employees into Social Security coverage through an agreement with the SSA, and every state has such an agreement covering at least some positions.11Social Security Administration. Section 218 Agreements – State and Local Government Employers
If your position is covered by a Section 218 Agreement, or if you do not belong to a qualifying retirement system, you owe the standard 6.2%.12Internal Revenue Service. State and Local Government Employees Social Security and Medicare Coverage One rule cuts across everything: state and local government employees hired after March 31, 1986, owe the 1.45% Medicare tax regardless of their Social Security coverage.13eCFR. 42 CFR 406.15 – Special Provisions Applicable to Medicare Qualified Government Employment Check with your human resources office to confirm which system covers you.
Children Under 18 in a Parent’s Business
Wages paid to a child under age 18 who works for a parent’s sole proprietorship, or for a partnership in which both partners are the child’s parents, are exempt from Social Security and Medicare taxes.14Internal Revenue Service. Family Employees The exemption disappears if the business is a corporation, or if the partnership includes anyone besides the parents. It also ends the day the child turns 18. Income tax withholding still applies regardless of age.
A Note on Working Abroad
Working outside the United States is not an exemption from Social Security tax, but it can change which country’s system you pay into. The U.S. has totalization agreements with 30 countries that prevent the same earnings from being taxed by two Social Security systems at once.15Social Security Administration. International Programs – U.S. International Social Security Agreements The general rule is that you pay into the system of the country where you work. If a U.S. employer sends you abroad temporarily, detached-worker rules generally keep you in the U.S. system for assignments of up to five years, with the specifics varying by agreement. Partner countries include Canada, the United Kingdom, Germany, Japan, Australia, and South Korea, among others.
If You’re Not Sure Whether You Qualify
The exemptions above are narrow by design, and each one has paperwork attached. Members of religious sects file Form 4029. Clergy file Form 4361 within the deadline tied to their second year of $400-plus ministerial earnings. Students should keep enrollment records. Nonimmigrant workers should hold on to their I-94 and visa documents. Government employees should confirm their coverage status with their employer. If FICA has been withheld from wages that should have been exempt, ask your employer for a corrected refund first; if that fails, Form 843 lets you claim the refund from the IRS directly.