Do I Have to Pay Taxes While Working on an H1B or Doing an OPT?

Posted by in Taxes | Updated on October 13, 2022

People that live in the United States have to have some type of visa to legally reside in the top immigrant nation.

In this article, we focus on answering questions for people that are in the US on an H1B visa or for students who have recently finished their studies and are planning to do an OPT in the US.

One of the first questions—and probably the most important question—people have revolves around how the tax system works and how much you have to pay while working in the US.

To cut straight to the chase, when working on an OPT, you only have to pay your federal, state, and city taxes.

However, when you start to work on an H1B visa, you will have to pay FICA taxes on top of those taxes, which include your Social Security and Medicare taxes.

So when working on an H1B visa, you definitely have to pay more taxes to the IRS than you would be doing an OPT.

Another rule when it comes to taxes and immigrants is that if you have passed a 5-year waiver period while on an F1 visa before starting your OPT, you will be required to pay more taxes.

Read on to learn more, or check out our video Salary After Taxes in US | How much can I save in USA?

How much tax do I have to pay when on an H1B visa?

On an H1B visa, you have to pay federal, state, Social Security, and Medicare tax based on your income.

The federal income tax rate ranges from 10% to 39.6%; the higher your income, the higher the tax you have to pay.

Usually, H1B workers have to have a certain level of income and therefore pay between 25% and 28% on taxable income. The exact amount of how much you have to pay can be found on the official website of the IRS.

Like in every country, when you work and have a job, you are required to pay taxes.

How much tax do I have to pay when working on OPT?

As mentioned before, working on an OPT is a lot different than working on an H1B because an OPT is not technically considered a job. An OPT is considered more of an internship and has accompanying lower wages to prove it.

Therefore, if you are on an OPT, you will only have to pay federal, state, and city taxes, but you will not have to pay for Social Security or Medicare.

Table of Contents

Wrapping It Up

We hope this article has helped you understand the tax system for immigrants in the United States.

If you have any more questions about paying your taxes please feel free to contact us.

Likewise, if you have any information or stories you want to add in the comments section, please feel free to do so!

Good luck with your tax filing and make sure to check out the official homepage of the IRS for more information on what taxes you should be being in the United States as a resident!

Read More

Need a Loan? Get One in 3 Simple Steps

If you are considering applying for a personal loan, just follow these 3 simple steps.


Apply online for the loan amount you need. Submit the required documentation and provide your best possible application. Stronger applications get better loan offers.


If your application meets the eligibility criteria, the lender will contact you with regard to your application. Provide any additional information if required. Soon you’ll have your loan offer. Some lenders send a promissory note with your loan offer. Sign and return that note if you wish to accept the loan offer.


The loan then gets disbursed into your U.S. bank account within a reasonable number of days (some lenders will be as quick as 2-3 business days). Now you need to set up your repayment method. You can choose an autopay method online to help you pay on time every month.


About Stilt

Stilt provides loans to international students and working professionals in the U.S. (F-1, OPT, H-1B, O-1, L-1, TN visa holders) at rates lower than any other lender. Stilt is committed to helping immigrants build a better financial future.

We take a holistic underwriting approach to determine your interest rates and make sure you get the lowest rate possible. 

Learn what others are saying about us on Google, Yelp, and Facebook or visit us at If you have any questions, send us an email at [email protected]