Hello,
In average, how much (in percentage) does someone on H1B visa pay? I heard up to 30%, does that include medicare and social security, does it include state taxes? or the 30% is only the federal income tax and still the rest are to be deducted? and if so how much in total would that be? I know each case is different, but I just need to know the average percentage we are talking about.

Thanks
Gaby

Gaby:

Persons on a H-1B visa pay the same taxes that U.S. citizens pay.

FICA taxes are Social Security (6.2%) and Medicare (1.45%) taxes imposed on a flat rate of your gross salary.

State income taxes range from ZERO (seven states have NO state income tax at all) to about 13%, usually taxed on a progressive (the more you earn, the higher you tax rate) scale. On average, expect the state income tax to be about 4%.

Federal income taxes are progressive in nature, starting at 10%, the 15%, then 25%, then 28%, then 33%, then 35%. Most of my H-1B visa holders fall in the 15% tax bracket.

So the average is about 27% in taxes paid from your salary.

That does not cover sales taxes paid on virtually everything bought in the U.S., plus other levies such as ad valorum taxes paid when you register a car or boat and property taxes paid each year if you own a house.

BOTTOM LINE: 30% is a good average figure overall.

Thanks alot for the detailed reply

Glad to help!