Do Teenagers Pay Taxes on First Paycheck?
⚡ Do teenagers pay taxes on first paycheck? — quick answer
Yes. Teenagers with ordinary W-2 jobs usually pay FICA taxes — Social Security (6.2%) and Medicare (1.45%) — on every paycheck, regardless of how they filled out their W-4. Federal income tax may or may not be withheld depending on their total earnings and W-4 settings. Most teenagers working part-time owe little or no federal income tax at the end of the year.
- FICA taxes — withheld from almost all ordinary W-2 teen jobs. Social Security 6.2% + Medicare 1.45% = 7.65% of covered wages.
- Federal income tax — may or may not be withheld. Depends on W-4 settings and total annual earnings.
- State income tax — depends on the state. Some states have no income tax. Others withhold from the first dollar.
- Do they owe tax? — most teenagers earning under $16,100 from one W-2 job owe no federal income tax in 2026.
Your teenager got their first paycheck and noticed money was taken out before they even saw it. Or maybe you are a parent wondering whether your teen needs to worry about taxes at all.
Yes, teenagers pay taxes. But not the ones people always assume.
Almost every teenager with an ordinary W-2 job pays FICA taxes — Social Security and Medicare — from their very first paycheck. This applies regardless of hours worked or how the W-4 was filled out.
Federal income tax is different. Whether it comes out of a teenager’s paycheck depends on how they filled out their W-4 and how much they earn in total. Many part-time teen workers end up owing little or no federal income tax at the end of the year.
This guide explains exactly what taxes come out of a teenager’s first paycheck, whether they will owe anything when tax season arrives, and when a teenager needs to file a tax return.
Table of Contents
What taxes come out of a teenager’s paycheck?
A teenager’s paycheck has up to four types of tax deductions depending on their situation:
| Tax type | Rate | Does it apply to teenagers? | Can it be avoided? |
|---|---|---|---|
| Social Security (FICA) | 6.2% | Yes — almost all ordinary W-2 jobs | Rare exceptions exist |
| Medicare (FICA) | 1.45% | Yes — almost all ordinary W-2 jobs | Rare exceptions exist |
| Federal income tax | Varies (0–22% for most teens) | Depends on W-4 and earnings | Yes — if they qualify for exempt |
| State income tax | Varies by state | Depends on state | Depends on state rules |
The most important thing to understand
FICA and federal income tax are completely separate. For almost all ordinary W-2 teen jobs, FICA comes out of every paycheck. Federal income tax withholding depends on the W-4 the teenager filled out. Many teens and parents confuse the two — or assume that claiming exempt on the W-4 means no taxes at all. It does not. FICA still comes out regardless.
Want a full explanation of FICA? Read: What Is FICA? Social Security and Medicare Taxes Explained →
FICA taxes — the ones that usually come out first
FICA stands for Federal Insurance Contributions Act. It funds Social Security and Medicare. For almost all ordinary W-2 jobs, employees pay it — including teenagers on their very first day of work.
Social Security — 6.2%
Taken from every paycheck on wages up to $184,500 in 2026. Funds retirement and disability benefits. A 16-year-old pays the exact same rate as a 50-year-old.
Medicare — 1.45%
Taken from almost all ordinary W-2 paychecks with no income cap. Funds healthcare for retirees. W-4 settings do not affect it.
Rare FICA exceptions
There are rare exceptions — such as some children under 18 working for a parent’s sole proprietorship or certain student employees working for a school they attend. But for normal teen jobs — fast food, retail, grocery stores, summer camps, cafés, and similar W-2 jobs — Social Security and Medicare are withheld from every paycheck.
Real numbers — what FICA takes from a typical teen paycheck
At $12/hour working 20 hours per week, biweekly gross pay is $480.
- Social Security (6.2%): $29.76
- Medicare (1.45%): $6.96
- Total FICA per check: $36.72
- Annual FICA on this income: $954.72
That $36.72 comes out of every biweekly check. It does not come back at tax time. It is not a withholding that gets reconciled — it is a tax.
⚠️ Claiming exempt on the W-4 does not stop FICA
This is one of the most common misconceptions for teenage workers. If your teenager claimed exempt on their W-4, federal income tax withholding stops — but FICA does not. Social Security and Medicare still come out of every paycheck regardless of what was written on the W-4. If a teenager sees FICA, OASDI, or Medicare on their pay stub after claiming exempt, that is correct and expected.
What tax names might appear on a teenager’s pay stub?
Tax line items on a pay stub can look confusing. This table decodes the labels a teenager is most likely to see:
| Pay stub label | What it usually means |
|---|---|
| FICA | Social Security and Medicare taxes combined |
| OASDI | Social Security tax — usually 6.2% |
| SS or Soc Sec | Social Security tax |
| MED or Medicare | Medicare tax — usually 1.45% |
| FIT or Fed Tax | Federal income tax withholding |
| SIT or State Tax | State income tax withholding, if applicable |
Federal income tax — does it come out of a teenager’s paycheck?
Federal income tax withholding depends on two things: how the teenager filled out their W-4, and how much they earn in total.
If the teenager claimed exempt on their W-4
No federal income tax will be withheld from their paychecks during the year. They still pay FICA. At tax filing time, if they truly earned under the standard deduction threshold, they owe nothing and do not need to file (though filing is still recommended to confirm this).
If the teenager did not claim exempt
Federal income tax may be withheld based on their Single filing status and earnings. For many part-time teen workers earning under $16,100 in 2026, payroll software may withhold little or nothing even without exempt status — because their annualized income falls below the standard deduction.
| Teen’s annual earnings | Federal income tax owed? | Federal withholding likely? |
|---|---|---|
| Under $5,000 | No | Usually none |
| $5,000–$10,000 | No | Unlikely to none |
| $10,000–$16,100 | No (usually) | Small amount possible |
| Over $16,100 | Yes — on the amount above $16,100 | Yes |
The 2026 standard deduction for a single filer is $16,100
A teenager with only W-2 earned wages who earns under $16,100 in 2026 will generally owe no federal income tax. The standard deduction wipes out all taxable income below that threshold. This applies whether they claimed exempt or not — the difference is just when the government gets confirmation. Exempt means no withholding during the year. Non-exempt means some withholding during the year followed by a refund in April.
State income tax on a teenager’s paycheck
State income tax depends entirely on which state your teenager works in. Rules vary significantly.
States with no income tax
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Teenagers in these states pay no state income tax on their wages.
States with income tax
Most other states withhold state income tax from paychecks. Rates and thresholds vary. Some states also have their own standard deductions that may reduce or eliminate tax owed for low-income teenage workers.
Note on state W-4 forms
Some states have their own withholding form separate from the federal W-4. Your teenager may have received both a federal W-4 and a state withholding form at their new job. The rules for each are separate. This guide covers federal taxes only — check your state’s revenue department website for state-specific rules.
Do teenagers actually owe federal income tax?
Whether a teenager owes federal income tax at the end of the year is different from whether it gets withheld during the year. Most part-time teenage workers end up owing nothing.
- Teen earns under $16,100 from one W-2 job, no tips, no other income. Owes no federal income tax in most ordinary W-2-only cases. If federal tax was withheld, they should file to claim a refund. If they claimed exempt and had no other income, they may not need to file — but filing rules can change if they have tips, investment income, self-employment income, or other tax situations.
- Teen earns over $16,100 from W-2 wages. Owes federal income tax on the amount above $16,100. The 10% bracket applies to the first $11,925 of taxable income in 2026, then 12% above that. Federal tax will be withheld during the year if W-4 is filled out correctly.
- Teen earns tips, freelance income, or investment income in addition to wages. More complex. Total income from all sources determines whether they owe tax. Tips are taxable income subject to both FICA and federal income tax. A tax professional or the IRS Tax Withholding Estimator can help calculate this accurately.
FICA is owed regardless of all three scenarios
In every scenario above — whether the teen owes income tax or not — FICA taxes are owed on all earned wages. Social Security and Medicare do not disappear when income is low. They are flat percentages taken from every dollar earned from the first paycheck.
Does a teenager need to file a tax return?
Filing a federal tax return is required when income exceeds certain thresholds. For a teenager claimed as a dependent by their parents, filing requirements depend on earned income, unearned income, and whether any tax was withheld. A simplified guide based on IRS Publication 501:
| Income type | Filing required if earnings exceed |
|---|---|
| Earned income only (W-2 wages) | May be required around the dependent earned-income filing threshold — verify against IRS Publication 501 |
| Unearned income only | Usually required at a much lower threshold — check IRS Publication 501 |
| Federal tax was withheld | Filing may be worth it even if not required — it is how they claim a refund |
Even if not required — filing is often worth it
If any federal income tax was withheld from your teenager’s paychecks during the year and they earned under the standard deduction, they will get a full refund by filing. They will not get that money back without filing. Many teenagers who are not required to file should still file to claim their refund.
⚠️ Do not confuse the filing threshold with the standard deduction
Filing thresholds and the standard deduction are not always the same number. Filing rules tell you whether a return is required. The standard deduction helps determine how much income is taxable once a return is filed. A teenager may be required to file even when they ultimately owe zero federal income tax.
How much tax comes out of a teenager’s first paycheck?
This is what taxes look like on a typical 16-year-old’s part-time paycheck:
Example: $12/hour, 20 hours/week, biweekly pay, single W-4
Annual earnings at this rate: $12,480 — below the $16,100 standard deduction.
| Deduction | Amount per biweekly check | Notes |
|---|---|---|
| Gross pay | $480.00 | $12 × 20 hrs × 2 weeks |
| Social Security (6.2%) | $29.76 | Withheld for almost all ordinary W-2 teen jobs |
| Medicare (1.45%) | $6.96 | Withheld for almost all ordinary W-2 teen jobs |
| Federal income tax | Usually $0 | Annual income below standard deduction |
| State income tax | Varies by state | $0 in no-tax states |
| Take-home pay | ~$443.28 | Before any state tax |
At the end of the year, this teenager owes no federal income tax. FICA taxes of $954.72 are paid for the year and are not refunded just because the teen’s income was low. If any federal income tax was withheld, they can file a return and get it back.
Check Your Teen’s Exact Paycheck Taxes
Enter hourly wage, hours, and pay schedule to estimate Social Security, Medicare, federal withholding, and take-home pay using 2026 IRS figures.
Want to understand every deduction between gross and take-home pay? Read: Gross Pay vs Net Pay →
Tips and multiple jobs — when teen taxes get more complex
Tips
Tips are taxable income. FICA taxes apply to all reported tips on top of hourly wages. A teenager earning $10/hour plus $200/month in tips pays Social Security and Medicare on both. Tips can also push total annual income closer to or above the standard deduction, which means federal income tax may be owed.
Multiple jobs
Each employer withholds taxes independently. If two jobs together push total annual income above $16,100, federal income tax will be owed even if neither job individually crosses that threshold. FICA is withheld by each employer separately with no interaction between them.
When to use the IRS Tax Withholding Estimator
For teenagers with tips, multiple jobs, or investment income, the IRS Tax Withholding Estimator gives a more accurate picture of what will be owed. It accounts for all income sources and helps set W-4 settings correctly to avoid a surprise tax bill in April.
Frequently asked questions — do teenagers pay taxes on their first paycheck?
Do teenagers pay taxes on their first paycheck?
Yes. Every teenager with a W-2 job pays FICA taxes — Social Security at 6.2% and Medicare at 1.45% — on their very first paycheck. Federal income tax withholding depends on how they filled out their W-4 and their total expected annual earnings. Most part-time teen workers earning under $16,100 in 2026 owe no federal income tax, but FICA is still withheld for almost all ordinary W-2 jobs.
Are minors exempt from paying taxes?
No. Minors are not automatically exempt from taxes. They pay FICA on every paycheck just like adults. Whether they owe federal income tax depends on their total annual earnings. Most teenagers working part-time earn below the standard deduction threshold and owe no federal income tax — but that is a result of low income, not age. Age does not exempt anyone from FICA.
Why does my teenager’s paycheck have taxes taken out?
Two types of taxes come out automatically. FICA taxes — Social Security (6.2%) and Medicare (1.45%) — are withheld from every paycheck for every employee regardless of age or W-4 settings. Federal income tax may also be withheld depending on how the W-4 was filled out. If your teenager claimed exempt on their W-4, only FICA should be coming out. If they did not claim exempt, federal income tax withholding may also appear depending on their income level.
Does a teenager have to pay federal income tax?
It depends on how much they earn. For 2026, a teenager with only W-2 wages earning under $16,100 generally owes no federal income tax because the standard deduction eliminates all taxable income below that threshold. If they earn more than $16,100, they owe federal income tax on the amount above that figure. FICA is owed regardless of whether they owe federal income tax.
What is FICA and why does it come out of a teenager’s paycheck?
FICA stands for Federal Insurance Contributions Act. It funds Social Security and Medicare. For almost all ordinary W-2 jobs, employees pay FICA — including teenagers on their very first day of work. The combined rate is 7.65% (6.2% Social Security + 1.45% Medicare). This covers fast food, retail, grocery stores, cafés, summer jobs, and similar W-2 positions. It appears on pay stubs as FICA, OASDI, Social Security, Medicare, or MED depending on the payroll system.
Does a teenager need to file a tax return?
A teenager claimed as a dependent is required to file a federal tax return if their earned income exceeds $14,600 in 2026. Even if not required, filing is often worthwhile if any federal income tax was withheld during the year — they may get a full refund. Filing takes less than 30 minutes for a teenager with a single W-2 using free IRS tools.
Can a teenager get a tax refund?
Yes — if federal income tax was withheld from their paychecks and their total annual earnings were below the standard deduction, they can file a tax return and receive a full refund of the withheld federal income tax. FICA taxes are not refunded. The refund only applies to federal income tax that was over-withheld. To get the refund, they need to file a tax return even if they are not required to.
Do teenagers pay taxes on tips?
Yes. Tips are taxable income. FICA taxes — Social Security and Medicare — apply to all reported tips on top of hourly wages. Federal income tax may also be owed on tips if total annual income including tips exceeds the standard deduction. Teenagers working in restaurants, cafés, or any tipped position should report their tips to their employer and have them included in payroll calculations.
What is the difference between FICA and federal income tax for teenagers?
FICA is usually taken from ordinary W-2 paychecks at 7.65%. W-4 settings do not stop it. Rare exceptions exist, but they do not apply to most teen jobs like fast food, retail, cafés, grocery stores, or summer jobs. Federal income tax is calculated on annual earnings and depends on the standard deduction, filing status, and W-4 settings. Most teenagers owe no federal income tax because their earnings fall below the standard deduction. Most teenagers with ordinary W-2 jobs owe FICA on covered wages.
If my teenager claimed exempt, do they still pay taxes?
Yes. Claiming exempt on the W-4 stops federal income tax withholding — nothing else. Social Security and Medicare (FICA) still come out of every paycheck. State income tax may still be withheld depending on the state. Exempt status only means the teenager expects to owe no federal income tax for the year. It does not mean they pay no taxes at all.
Do I get taxed if I am 16? Do 16-year-olds pay taxes if they work?
Yes. A 16-year-old with a W-2 job pays FICA taxes — Social Security and Medicare — on every paycheck from day one. There is no general age-based exemption from FICA for ordinary W-2 jobs. Federal income tax depends on total annual earnings. Most 16-year-olds working part-time earn under the standard deduction and owe no federal income tax, but FICA is still withheld for almost all ordinary W-2 jobs.
Do you have to pay tax when you are under 18? Can I be taxed at 15?
Yes. There is no general age-based exemption from FICA for ordinary W-2 jobs. A 15-year-old, 16-year-old, or any minor with a W-2 job pays Social Security and Medicare on every paycheck. Federal income tax rules are the same for minors as for adults — if total annual earnings exceed the standard deduction, federal income tax is owed. Most teenagers working part-time earn below that threshold and owe no federal income tax, but FICA is still withheld for almost all ordinary W-2 jobs.
Can a 16-year-old or 17-year-old file taxes independently?
Yes. A teenager can file their own federal tax return independently regardless of age. There is no minimum age requirement to file. If your 16-year-old or 17-year-old had federal income tax withheld and their earnings were below the standard deduction, filing their own return is the only way to get a refund of that withheld tax. IRS Free File Guided Tax is available to taxpayers with AGI of $89,000 or below for the 2026 filing season. Filing does not affect your ability to claim them as a dependent on your own return.
Do teenagers pay taxes on their first paycheck in California?
Yes. In California, teenagers pay all federal taxes — FICA and potentially federal income tax — the same as everywhere else in the US. California also has state income tax, which will be withheld from paychecks depending on earnings and the state DE-4 withholding form. California has a state standard deduction and low-income exemption that may mean little or no state income tax for many part-time teen workers. Check the California Franchise Tax Board website for current state-specific thresholds.
Do minors pay taxes?
Yes. Minors with W-2 jobs pay FICA taxes — Social Security and Medicare — on their wages from their very first paycheck. Whether they owe federal income tax depends on their total annual earnings. Most minors working part-time earn below the standard deduction threshold and owe no federal income tax, but FICA is withheld regardless. There is no special tax exemption just for being a minor in the United States.
Do 15-year-olds have to pay taxes?
Yes. A 15-year-old with a W-2 job pays FICA taxes — Social Security and Medicare — on their wages.
When do teenagers need to file taxes?
A teenager claimed as a dependent is generally required to file a federal tax return if their earned income exceeds the dependent filing threshold for the year — check the current IRS Publication 501 for the exact figure. Even when not required, filing is worth doing if any federal income tax was withheld during the year, because filing is the only way to get that money back as a refund. Filing takes under 30 minutes for a teenager with a single W-2 using IRS Free File.
How do I file taxes for my teenager? How does my teen file taxes?
A teenager files their own federal tax return the same way an adult does — using their W-2 form from their employer. They can file independently regardless of age. Free options include IRS Free File Guided Tax (available to those with AGI under $89,000) and many free tax software programs. If your teenager is a dependent on your return, they should check the box on their own return indicating they can be claimed as a dependent. Filing separately does not affect your ability to claim them on your return.
Why do 16-year-olds pay taxes?
Only if they work. A 16-year-old who is not working and has no income pays no taxes at all — no FICA, no federal income tax, nothing. Taxes only apply when there is income to tax. Once a teenager starts a W-2 job, FICA taxes — Social Security and Medicare — are withheld from every paycheck because federal law requires all employees to contribute to these programs regardless of age.
The bottom line — do teenagers pay taxes on their first paycheck?
Yes — but the answer depends on which tax you are asking about.
FICA taxes: Usually, yes. For almost all ordinary W-2 teen jobs, Social Security and Medicare come out from the first paycheck. W-4 settings do not stop FICA.
Federal income tax: Maybe. Most part-time teenage workers earning under $16,100 in 2026 owe no federal income tax. Whether it gets withheld during the year depends on the W-4. Either way, it gets sorted out at tax filing time in April.
State income tax: Depends on the state. No tax in nine states. Varies everywhere else.
The paycheck always looks smaller than expected because of FICA. That is normal, expected, and the same for every worker at every age in the country.
See Exactly What Comes Out of Your Teen’s Paycheck
Enter your teenager’s hourly rate, hours, and pay schedule to see the exact Social Security, Medicare, and federal income tax breakdown using 2026 IRS figures.
The information in this article is for educational purposes only and does not constitute tax or legal advice. FICA rates confirmed via IRS Tax Topic 751. Standard deduction and filing threshold figures for 2026 confirmed via IRS Publication 501. Tax rules for dependents vary by situation. Consult a tax professional for advice specific to your family’s circumstances.
