Do minors get taxes taken out of their paycheck?
Yes, minors typically get taxes taken out of their paycheck just like adults if they earn more than the standard deduction. For 2026, minors must file taxes if they earn more than $16,100 in wages. However, many teens can claim exempt status on Form W-4 if they expect to owe no federal tax, preventing withholding. Minors can get refunds by filing a tax return if taxes were withheld.
This guide covers tax withholding for minors ages 14–18, filing requirements, how to claim exempt on Form W-4, self-employment tax rules, and getting refunds. Updated for the 2026 tax year.
Understanding the basics: Do minors have to pay taxes?
Minors must pay taxes if their income exceeds IRS thresholds. For 2026, minors need to file if they earn more than $16,100 in wages (earned income) or $1,350 in investment income (unearned income). Tax rules apply equally to minors and adults – age does not exempt anyone from federal income tax obligations.
The IRS has two key thresholds for minors in 2026:
- Earned income threshold: $16,100 – covers wages, salaries, and tips from jobs.
-
Unearned income threshold: $1,350 – applies to interest, dividends, and capital gains from investments.
If a minor’s income exceeds these amounts, they must file a tax return. Income below these thresholds generally means no filing requirement, though filing may still be beneficial to claim refunds if taxes were withheld.
The workings of withholding: what happens to a minor’s paycheck?
Federal and state tax withholding
When minors work for an employer, federal income tax, Social Security tax (6.2%), and Medicare tax (1.45%) are withheld from each paycheck. The amount of federal income tax withheld depends on Form W-4.
Most teens can claim exempt status on a W-4 to stop federal withholding if they expect to owe no tax. Social Security and Medicare taxes (FICA) are always withheld – even an exempt status cannot stop FICA withholding.
The kiddie tax
The kiddie tax applies to unearned income (investments, dividends, interest) over $2,700 for 2026. Investment income between $1,350 and $2,700 is taxed at the child’s tax rate (typically 10%). Income above $2,700 may be taxed at the parents’ higher marginal rate to prevent income shifting to lower tax brackets.
Kiddie tax does not apply to earned income from jobs – only investment income. Most minors working regular jobs are not affected by the kiddie tax.
Income thresholds: when does a minor need to file a tax return?
Earned income filing requirements
For 2026, minors must file a tax return if earned income (wages, salaries) exceeds $16,100. This is the standard deduction amount. Income below this threshold generally does not require filing unless taxes were withheld and the minor wants a refund.
Unearned income filing requirements
Minors must file if unearned income (interest, dividends, capital gains) exceeds $1,350 for 2026. Minors with both earned and unearned income have more complex thresholds; consult IRS Publication 929 or use IRS Interactive Tax Assistant.
Why file even if not required
- File a tax return to get a refund of withheld taxes – many teens have federal income tax withheld even though they earn less than $16,100.
- Start building a record with the IRS for future financial activities.
- Establish work history for Social Security benefits calculation.
- File using IRS Free File if income is under the threshold.
Filing requirements by age
| Age | Typical income | W-4 strategy | Filing required? | Social Security/Medicare |
|---|---|---|---|---|
| 14–15 | $3,000–8,000 | Claim EXEMPT | No (unless self-employed $400+) | Always withheld (7.65%) |
| 16–17 | $6,000–15,000 | Check if it will exceed $16,100 | Only if income > $16,100 | Always withheld (7.65%) |
| 18 | $10,000–20,000+ | Usually withhold if full-time | Likely yes if working full-time | Always withheld (7.65%) |
NOTE!
- 2026 thresholds: $16,100 earned income, $1,350 unearned income.
- All ages: FICA taxes (7.65% total) are always withheld regardless of W-4 exempt status.
- Self-employment: $400 threshold requires filing at any age. Estimates are based on typical teen work patterns.
Form W-4 and claiming exempt status for minors
Minors can claim exemption from federal income tax withholding on Form W-4 if they expect to owe no federal tax and had no tax liability last year. This stops federal withholding from paychecks. To qualify for exempt status in 2026: expect total income under $16,100, and had $0 federal tax liability in the prior year.
NOTE! Social Security and Medicare taxes are still withheld.
Who qualifies for exempt status
Are minors exempt from withholding?
Minors can claim exemption if all conditions are met:
- Prior year: Had no federal income tax liability (or this is the first job).
- Current year 2026: Expect total income less than $16,100 (standard deduction).
- Current year: Expect to owe $0 federal income tax.
- Status: Can be claimed as a dependent on parents’ return (most minors).
Important: Exempt status only applies to federal income tax. Social Security (6.2%) and Medicare (1.45%) taxes are still withheld. State income tax follows state rules.
How to claim exemption on Form W-4
Step 1: Complete Form W-4 when starting a new job.
Step 2: Fill out personal information in Step 1 (name, address, SSN, filing status – typically Single).
Step 3: SKIP Steps 2, 3, and 4 entirely.
Step 4: Write "EXEMPT" in the space below Step 4(c).
Step 5: Sign and date the form.
Step 6: Submit to the employer. Exempt status expires February 15 of the following year – must submit new W-4 annually.
When NOT to claim exempt
Do not claim exempt if you:
- Expect to earn more than $16,100 for 2026 (high hourly rate, full-time hours, multiple jobs),
- Have unearned income creating tax liability,
- Want to avoid owing taxes at year-end (prefer steady withholding).
If unsure, use the IRS Tax Withholding Estimator or consult a tax professional like Taxes for Expats.
Special cases: self-employment and odd jobs
Do minors pay taxes? Minors earning $400 or more from self-employment must pay self-employment tax and file a tax return. Self-employment tax is 15.3% (Social Security 12.4% + Medicare 2.9%) and applies even if total income is below the $16,100 standard deduction. No employer to withhold taxes.
Self-employment tax threshold
Key rules for self-employed minors:
- $400 threshold: Must file tax return if net self-employment income is $400 or more, regardless of age.
- Self-employment tax: 15.3% on net earnings (gross income minus business expenses). This is separate from income tax. Even if income tax is $0 (under $16,100 standard deduction), self-employment tax is still owed on amounts over $400. Must pay both self-employment tax and income tax if total income exceeds $16,100.
Estimated tax payments
If you expect to owe $1,000 or more in US tax for the year, you’re generally required to make quarterly estimated tax payments rather than waiting until you file your return. These payments are typically due on April 15, June 15, September 15, and January 15, and they should be calculated based on your projected annual income.
If you don’t make sufficient estimated payments and end up owing more than $1,000 at filing, the IRS may assess an underpayment penalty, so it’s important to keep clear, detailed records of all income and expenses throughout the year.
Tax guidance by age: 14–18-year-olds
Tax rules are the same for minors ages 14–18, but filing requirements and withholding strategies differ based on typical income levels. Most 14–15-year-olds work limited hours and can claim W-4 exempt. Many 16–18-year-olds work more hours and should calculate whether the exempt status applies.
Ages 14–15: limited-income workers
- Typical scenario: First jobs, limited hours per week.
- Annual earnings usually: $3,000–8,000 (well below the $16,100 threshold).
- Tax strategy: Claim exemption on Form W-4 to avoid withholding. If taxes are withheld, file a return to get a full refund. Social Security/Medicare still withheld (cannot avoid).
- Filing: Usually not required due to low income, but file if taxes are withheld to get a refund.
Ages 16–17: increased hours
A typical scenario is working more hours during the school year and potentially full-time over the summer, with annual earnings usually ranging from $6,000 to $15,000.
From a tax perspective, the key step is to estimate whether your income will exceed the $16,100 threshold – if it does, you should have taxes withheld, and if it doesn’t, you may be able to claim an exemption, while reviewing your situation mid-year if your hours increase.
You generally need to file a tax return if your income goes over $16,100, or if you want to claim a refund of any taxes that were withheld.
Age 18: full-time potential
- Typical scenario: Full-time work possible (40 hours/week), gap year before college, post-graduation job.
- Annual earnings: Can easily exceed $16,100 with full-time work.
- Tax strategy: Do not claim exempt if working full-time. Calculate tax liability and set proper W-4 withholding.
- Filing: Likely required – file tax return if income over $16,100.
When a minor needs to file a tax return
When to file for a refund
File a tax return if federal income tax was withheld from paychecks, even if not required to file. Most minors earning under $16,100 who had taxes withheld will get a full refund. Check the final paystub for federal tax withheld (not FICA – that cannot be refunded). You can often file for free using IRS Free File if you qualify. For returns filed in 2026, IRS Free File Guided Tax is available if your adjusted gross income (AGI) is $89,000 or less.
The IRS says it issues most refunds in fewer than 21 days for taxpayers who e-file and choose direct deposit, but some returns take longer. Paper returns generally take longer to process, and the IRS posts a running update of what paper-return months they’re currently working on.
Parents claiming child’s income
Parents can report their child’s unearned income (dividends, interest) under certain thresholds on their own return using Form 8814 instead of the child filing separately.
This only works for unearned income from investments – it does not apply to wages from jobs. May result in higher tax due to parents’ tax bracket. Usually better for a child to file separately if they have earned income from work.
A working teen’s tax withholding: a parent’s guide
Parents should help teens complete Form W-4 accurately at their first job, review pay stubs to verify correct withholding, track total annual income to determine if filing is required, and teach basic tax concepts like gross vs net pay and FICA taxes.
Helping with Form W-4
Review Form W-4 together before the teen starts a job: Determine if exempt status applies (income will be under $16,100 for 2026).
If exempt:
- To claim exemption from federal income tax withholding for 2026, you must meet both IRS conditions: no federal income tax liability in 2025, and you expect none in 2026.
- On the 2026 Form W-4, claim exempt by checking the box in the Exempt from withholding’ section, then complete Steps 1(a), 1(b), and 5 only (don’t complete other steps).
- You’ll need to submit a new Form W-4 by February 16, 2027, to keep your exempt status.
If not exempt:
- Complete Step 1 only (personal info), leave Steps 2–4 blank for standard single withholding.
- Explain exempt status expires February 15 next year – must renew annually.
- Keep a copy of the W-4 for records.
Paycheck review tips
Review first paycheck together: Verify federal income tax withheld matches W-4 (should be $0 if claimed exempt).
Check FICA: Social Security 6.2%, Medicare 1.45% (always withheld). Track year-to-date earnings toward the $16,100 threshold. Keep all pay stubs for tax filing.
NOTE! Parents should consider their tax situation and consult a tax professional if necessary to determine the best approach.
Conclusion
Understanding taxes is an important life skill, and earning income as a minor is often the first real step toward financial responsibility. Do minors get taxes taken out? Yes, actually, minors are subject to the same tax rules as adults, but most teens earning under $16,100 for 2026 can claim exempt status on Form W-4 to avoid withholding, and should still file to recover any taxes withheld.
Self-employment income needs closer tracking, since $400 triggers filing and self-employment tax. Helping teens understand paychecks, withholding, and filing builds strong financial habits early.
Taxes for Expats supports families navigating these rules, including teen income, refunds, and self-employment situations. If you need help understanding next steps, you can contact us for personalized guidance or request a free consultation.
FAQ
Yes, minors typically get taxes taken out of their paycheck. They have federal income tax, Social Security (6.2%), and Medicare (1.45%) withheld from paychecks unless they claim exempt status on Form W-4. FICA taxes are always withheld. Minors can claim an exemption if their income is under $16,100 for 2026.
Yes, if they expect to earn less than $16,100 in 2026 and had no tax liability last year. Write EXEMPT on Form W-4 below Step 4(c). Exempt status only applies to federal income tax, not FICA taxes. Must renew annually.
There is no minimum age for paying taxes. Anyone earning income, regardless of age, must pay taxes if income exceeds thresholds. For 2026: earned income over $16,100 or unearned income over $1,350 requires filing and potential tax payment.
Teenagers must file if earned income exceeds $16,100 or unearned income exceeds $1,350 for 2026. Even if not required, teens should file to get refunds of withheld taxes. Self-employed teens must file if net earnings are $400 or more.
Yes, all minors with wages pay FICA taxes (Social Security 6.2% + Medicare 1.45% = 7.65% total). FICA cannot be avoided by claiming exempt status on W-4. Exempt status only stops federal income tax withholding.
For 2026, minors must file if earned income exceeds $16,100, unearned income exceeds $1,350, or self-employment income exceeds $400. File even if income below thresholds to get refund of withheld taxes.
The kiddie tax applies to unearned income over $2,700 for 2026. Investment income between $1,350–$2,700 is taxed at child's rate. Amounts over $2,700 may be taxed at parents' rate. Does not apply to earned income from work.
Yes, if income exceeds thresholds (same as all ages). Most 14 year olds earn well below $16,100 and can claim exempt on W-4. Must pay FICA taxes on all wages regardless of total income.
Yes, 16 year olds pay taxes using same rules as adults. Must file if income exceeds $16,100. Many 16-year-olds can claim exemption on W-4 if their expected income is under the threshold. FICA is always withheld from paychecks.
17-year-olds must file if earned income exceeds $16,100 or unearned income exceeds $1,350 for 2026. Same filing requirements as all other ages. No special exemptions based on age.
If required to file (income over $16,100) but don't, you may owe penalties and interest. If not required to file but had taxes withheld, you miss the opportunity to get a refund file to recover overpaid taxes.
Claim exempt on Form W-4 if income will be under $16,100 and there was no tax liability last year. Write EXEMPT below Step 4(c). Submit a new W-4 to the employer. Cannot stop Social Security/Medicare withholding.
Minors must file if earned income exceeds $16,100, unearned income exceeds $1,350, or self-employment income exceeds $400 for 2026. File even if not required to claim a refund of withheld taxes.
