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How much taxes H1B visa holders pay?

Asked Aug 19, 2009, 06:33 AM — 37 Answers
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

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AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,884, Reputation: 3728
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#2

Aug 19, 2009, 11:47 AM


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.
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mailmegaby's Avatar
mailmegaby Posts: 4, Reputation: 1
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#3

Aug 19, 2009, 04:53 PM
Thanks a lot for the detailed reply
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AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,884, Reputation: 3728
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#4

Aug 20, 2009, 07:47 AM


Glad to help!
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aditya_2kx's Avatar
aditya_2kx Posts: 5, Reputation: 1
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#5

Jul 22, 2012, 12:58 AM
Can you please refine the answer for 2012. I am going there to do my masters in computers in California. And if my monthly salary would be 6000/month what would be the total tax I would be paying ?
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AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,884, Reputation: 3728
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#6

Jul 22, 2012, 06:50 AM


The only change is Social Security is temporarily is 4.2%. Everything else is the same.
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aditya_2kx's Avatar
aditya_2kx Posts: 5, Reputation: 1
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#7

Jul 26, 2012, 04:13 AM
So sir there isn't any special tax for H1 working Indians in US...? I mean one has H1 and one has green card and both are working there. Are there any taxes that one has to pay and other does not ?
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AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,884, Reputation: 3728
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#8

Jul 26, 2012, 06:12 AM
They are taxed EXACTLY the same. That is required under the non-discrimination clause of the tax treaty.
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aditya_2kx's Avatar
aditya_2kx Posts: 5, Reputation: 1
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#9

Jul 26, 2012, 01:37 PM
Quote:
Originally Posted by AtlantaTaxExpert View Post
They are taxed EXACTLY the same. That is required under the non-discrimination clause of the tax treaty.
Thank you Sir, for your prompt and apt answer.
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AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,884, Reputation: 3728
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#10

Jul 26, 2012, 01:41 PM
Glad to help!
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