Social Security is mandatory for almost every American worker. Federal law requires employees, employers, and the self-employed to pay Social Security and Medicare taxes on earnings, and personal disagreement with the program is not a legal basis to opt out. A short list of exemptions exists for members of certain religious sects, some ministers, some state and local government employees, qualifying student workers, and certain nonresident aliens on specific visas. Each of those exemptions has strict eligibility rules and, in most cases, a permanent loss of future benefits attached.
Why Participation Is Required
The Federal Insurance Contributions Act, codified at Chapter 21 of the Internal Revenue Code, requires employees and employers to pay Social Security and Medicare taxes on wages. The employee share is 6.2% for Social Security and 1.45% for Medicare, and the employer matches both, bringing the combined rate to 15.3%.1Office of the Law Revision Counsel. 26 USC Ch. 21 – Federal Insurance Contributions Act Your employer withholds your share automatically. You cannot waive or negotiate it away.
In 2026, the 6.2% Social Security tax applies only to the first $184,500 in wages. Earnings above that cap are not subject to Social Security tax, but the 1.45% Medicare tax continues without a ceiling.2Social Security Administration. Contribution and Benefit Base A worker earning at or above the wage base pays $11,439 in Social Security tax for the year, with the employer paying the same amount. Wages above $200,000 in a calendar year also carry an additional 0.9% Medicare surtax, which the employer must start withholding once that threshold is crossed, regardless of filing status.3Internal Revenue Service. Topic No. 751 – Social Security and Medicare Withholding Rates
Self-employment doesn’t get you out either. Under the Self-Employment Contributions Act at Chapter 2 of the Internal Revenue Code, freelancers, independent contractors, and sole proprietors pay the full 15.3% themselves once net self-employment earnings reach $400 for the year: 12.4% for Social Security and 2.9% for Medicare.4Office of the Law Revision Counsel. 26 USC Ch. 2 – Tax on Self-Employment Income The self-employment tax is reported on Schedule SE with Form 1040. You can deduct half of it when calculating adjusted gross income, which lowers your income tax bill but does not reduce the payroll tax itself.5Internal Revenue Service. Topic No. 554 – Self-Employment Tax The same $184,500 wage base applies across your combined wages and self-employment income; once you exceed it, the Social Security portion stops, but the Medicare portion continues on all remaining earnings.
The Narrow Exemptions That Do Exist
Federal law recognizes a small number of situations where a worker can be excluded from Social Security and Medicare taxes. None of them is available simply on request.
Members of Recognized Religious Sects
Under 26 U.S.C. § 1402(g), members of a religious group that opposes all forms of public and private insurance can apply for exemption. The group itself must have established teachings against insurance benefits, a longstanding practice of caring for its own dependent members, and continuous existence since December 31, 1950.6Office of the Law Revision Counsel. 26 USC 1402 – Definitions Old Order Amish and certain Mennonite communities are the most commonly recognized qualifying sects.
The application is IRS Form 4029. It goes to the Social Security Administration first, which verifies the group’s qualifications before forwarding it to the IRS.7Internal Revenue Service. About Form 4029 – Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits Approval means giving up all rights to Social Security retirement, disability, survivor, and Medicare benefits — both on your own earnings record and on anyone else’s. If you later leave the group or stop following its teachings, you must notify the IRS within 60 days, and the exemption ends for all future income.8Internal Revenue Service. Minister and Religious Waiver Program
Ministers and Members of Religious Orders
Ordained ministers, commissioned or licensed clergy, members of religious orders who have not taken a vow of poverty, and Christian Science practitioners can apply for a separate individual exemption under 26 U.S.C. § 1402(e). This one does not depend on the entire religious group meeting criteria. Instead, the applicant must personally certify religious or conscientious opposition to accepting public insurance benefits, and must notify the body that ordained or licensed them.9Office of the Law Revision Counsel. 26 U.S. Code 1402 – Definitions
The application is IRS Form 4361, due by the filing date (including extensions) of the tax return for the second year in which the minister earned $400 or more in net self-employment income from ministerial duties. Miss that deadline and the opportunity is gone.8Internal Revenue Service. Minister and Religious Waiver Program The exemption covers only income from ministerial services; a second, non-ministerial job stays subject to normal payroll taxes. Once granted, the exemption is irrevocable. Congress once offered a limited window to reverse the election using Form 2031, but that window has not been reopened since 1999.
Certain State and Local Government Employees
Some state and local government workers are not covered by Social Security, but this is not an individual choice. Section 218 of the Social Security Act allows each state to enter a voluntary agreement with the Social Security Administration extending coverage to its public employees.10Social Security Administration. Social Security Act 218 – Voluntary Agreements for Coverage of State and Local Employees All 50 states, Puerto Rico, the Virgin Islands, and roughly 60 interstate agencies have agreements in place, though the specific employee groups covered vary.11Social Security Administration. Section 218 Agreements – State and Local Government Employers Where a qualifying state or local retirement system exists as a substitute, some public employees participate in that pension plan instead. Whether that applies depends entirely on the terms of the state’s Section 218 agreement and the specific position, not on the worker’s preference.
Student Workers
If you work for the same school, college, or university where you are enrolled and regularly attending classes, your wages may be exempt from FICA under 26 U.S.C. § 3121(b)(10). The work must be connected to your course of study, not simply a job that happens to sit on campus.12Office of the Law Revision Counsel. 26 USC 3121 – Definitions Full-time career employees of a university do not qualify, even if they take a class or two. Federal regulations look at the overall relationship: your enrollment and class attendance must be the primary reason you are at the institution, with employment secondary.13eCFR. 26 CFR 31.3121(b)(10)-2 – Services Performed by Certain Students in the Employ of a School, College, or University The exemption applies only during periods when you are enrolled; it does not cover breaks when you continue working but are not attending classes.
Nonresident Aliens on Certain Visas
Foreign nationals in the United States on F-1, J-1, or M-1 student visas are generally exempt from Social Security and Medicare taxes while they remain nonresident aliens for tax purposes. The exemption sits at 26 U.S.C. § 3121(b)(19) and applies when the work is connected to the purpose of the visa.14Office of the Law Revision Counsel. 26 U.S. Code 3121 – Definitions In practice, foreign students typically qualify during their first five calendar years in the U.S. After that, they are generally reclassified as resident aliens and become subject to normal payroll taxes. The exemption covers on-campus jobs, off-campus employment authorized by USCIS, and practical training, but does not extend to spouses or dependents.15Internal Revenue Service. Foreign Student Liability for Social Security and Medicare Taxes J-1 scholars, teachers, researchers, and trainees who are not students have a shorter window, generally two calendar years. Workers covered by a bilateral Totalization agreement between the U.S. and their home country may also be exempt, paying into the home country’s system instead.
What Exempt Workers Give Up
Every exemption comes with a cost: no credits toward future benefits. In 2026, you earn one Social Security credit for every $1,890 in covered earnings, up to four per year, and you need 40 credits (roughly 10 years of work) to qualify for retirement benefits at all.16Social Security Administration. Benefits Planner – Social Security Credits and Benefit Eligibility Years in exempt employment produce zero credits. Fewer credits can mean a smaller monthly benefit or, for workers who never reach 40, no eligibility for retirement benefits at all. The same shortage can block disability and survivor benefits, which have their own credit requirements.
The religious sect exemption on Form 4029 goes further: it waives benefits payable on anyone else’s earnings record too, not just your own. Before pursuing any exemption, weigh the tax savings against the lifetime value of the retirement, disability, and Medicare benefits you would forfeit.
Penalties for Refusing to Pay
Disagreement with the program is not a defense. The IRS treats deliberate nonpayment of Social Security taxes the same as any other tax evasion. A conviction under 26 U.S.C. § 7201 carries up to five years in prison and fines up to $100,000 for individuals.17Office of the Law Revision Counsel. 26 U.S. Code 7201 – Attempt to Evade or Defeat Tax
Employers face their own exposure. The Trust Fund Recovery Penalty equals 100% of the unpaid employee tax and can be imposed personally on any individual within the business responsible for collecting and paying those taxes.18Internal Revenue Service. Employment Taxes and the Trust Fund Recovery Penalty Filing a fraudulent exemption claim or misrepresenting a religious affiliation to avoid the taxes carries the same criminal risk.