Who is exempt from paying Social Security taxes? See if you qualify

The Social Security and Medicare programs are financed through FICA taxes on the earnings of American employees and the self-employed. Generally, all workers in the United States must contribute to the two programs.

The current tax rates is 12.4% and 2.9%, respectively, which are divided equally among the employee and employer, except for the self-employed who pay both halves. However, there are some workers who are not required to pay these taxes.

Workers exempt from Social Security taxes

Workers who are subject to Social Security taxes must pay their portion on earnings up to $184,500 in the 2026 fiscal year. This amount changes every year to reflect inflation and is determined by the Social Security’s cost-of-living adjustment (COLA) announced in October every year. There is no earnings cap on wages for Medicare taxes.

Investopedia lists five other groups of people that may be exempt from Social Security taxes. These include the following:

• Members of certain religious groups
• Certain foreign visitors
• Some college students
• Federal employees hired in 1984 or earlier
• Certain state and local government employees

The self-employed can claim a tax credit for the Social Security taxes that they have paid. The deduction only applies to the half that would have corresponded to contributions made by an employer.

Other workers may be eligible for a deduction based on their Social Security tax contributions but they should consult with a tax advisor to look into their specific situation notes Investopedia.

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