These 4 Types of People Don’t Have To Pay Social Security Taxes

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Employees and employers typically both pay Social Security taxes at a rate 6.2% of earnings, up to the $168,600 wage cap in 2024. The Social Security Administration reported that around 180 million paid these taxes in 2023, and opting out isn’t possible for most people. However, you might be an exception if you’re part of one of these four main groups that may avoid Social Security taxes.

1. Eligible Student Workers

If you’re currently a student and work for the same educational institution, you could be off the hook for Social Security taxes until you finish your studies. However, your school must have offered you a temporary job because of your student status, according to Intuit TurboTax.

So, you can’t qualify if you’re a regular school employee who just decides to take courses. Note that any other income sources will be taxed as usual.

2. Qualifying Religious Group Members

You may avoid paying Social Security taxes if you’re part of a recognized religion that doesn’t believe in using insurance benefits. The SSA lays out some criteria, including that the religion must have been established by Dec. 31, 1950, and must have provided sufficient provisions for members. You won’t qualify if you’ve received Social Security benefits at some time. 

You can read and file IRS Form 4029 for the exemption, which requires giving up any potential Social Security benefits. You can contact the IRS later if you ever want to change your designation and start paying the taxes.

3. Certain Government Employees

If you’re a government employee who pays into a pension program that substitutes for Social Security benefits, then you might not need to pay the tax. According to the IRS, the same could apply if your position falls under the Section 218 Agreement exclusions. A few examples include some emergency, election and agricultural workers.

Foreign government employees often don’t need to pay Social Security taxes either when they’re doing official work.

4. Some Nonresident Aliens

Many noncitizen and nonresident workers in the U.S. are still responsible for Social Security taxes, but there are exceptions. For example, you might be exempt if you’re a temporary education professional, researcher, au pair, physician or foreign government worker. There are also several other exempt positions as well as rules for family members. 

This exemption is complex, and technicalities about your immigration status will matter. This makes it a good idea to consider meeting with a tax professional for guidance.

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