Tax year 2026Checked October 22, 2026

OPT vs STEM OPT vs H-1B: take-home pay on the same salary (2026)

Estimated 2026 take-home pay on one salary from OPT to STEM OPT to H-1B, and the two things that change it: tax residency and Social Security and Medicare tax.

7.65% of H-1B pay goes to Social Security and Medicare tax from day one, even as a nonresident, on wages up to $184,500

By F1TaxReturn Tax Team. Published October 22, 2026. Facts checked against the sources below on October 22, 2026. 7 minute read.

In short

On the same salary, OPT and STEM OPT pay the same tax in 2026: both are F-1 practical training, with no Social Security or Medicare tax while you are a nonresident alien.
H-1B pay owes 7.65% Social Security and Medicare tax from your first day in H-1B status, even in a year you are still a nonresident alien.
A resident alien for all of 2026 pays the same tax on STEM OPT as on H-1B: 7.65% on wages, and the $16,100 standard deduction.
An October 1, 2026 H-1B start inside your five exempt years leaves you a nonresident alien for all of 2026, filing Form 1040-NR, because 92 days are short of 183.
On $100,000 in Texas, our 2026 estimate of take-home (wages only, single, no treaty) is $83,288 on OPT as a nonresident, $81,375 with an H-1B from October 1, and $79,180 as a resident.

Contents, 7 sections

On the same salary in tax year 2026, an F-1 student keeps the same pay on OPT as on STEM OPT. On H-1B, each paycheck loses 7.65% of gross pay to Social Security and Medicare tax from the first day, even while you are still a nonresident alien. A resident alien pays the same tax on STEM OPT as on H-1B.

Estimated 2026 take-home pay on the same salary at each stage, before any state payroll programs. The first two columns are for a nonresident alien.
Salary and state	OPT or STEM OPT	H-1B from October 1	Resident on STEM OPT or H-1B
$80,000, Texas	$67,688	$66,158	$65,110
$100,000, Texas	$83,288	$81,375	$79,180
$150,000, Texas	$121,402	$118,533	$113,791
$100,000, California	$79,457	$77,544	$74,269
$150,000, California	$114,136	$111,267	$104,230

These are estimates for tax year 2026 from our take-home calculator: wages only, single, no tax treaty and a full year in one state. The salary stays the same after the H-1B start, and the resident column is a full year as a resident alien. Texas figures also hold in Florida, Washington and the other states that do not tax wages. California uses the FTB's 2026 rate schedule, $5,900 deduction and $158 credit. State payroll programs, such as California SDI or Washington's Paid Leave premium, may also be withheld; check your pay stub.

For the rest of your return, start with the guide to US taxes for international students.

Is STEM OPT taxed differently from OPT?

OPT and STEM OPT pay are taxed the same way, because both are practical training in F-1 status. While you are a nonresident alien, that pay owes income tax but no Social Security or Medicare tax.

The IRS lists practical training on or off campus as exempt work for F-1 students (IRS), and an IRS information letter says the exemption covers CPT and OPT (INFO 2002-0240). For income tax, nonresident aliens get no standard deduction; students and business apprentices from India are the exception (IRS). The OPT, STEM OPT and CPT tax guide covers withholding and treaties.

Key facts

Tax on OPT vs STEM OPT pay: The same: both are F-1 practical training
Social Security and Medicare tax, 2026: 7.65% (6.2% on wages up to $184,500, plus 1.45%); none on OPT or STEM OPT pay while you are a nonresident alien
When H-1B pay starts owing it: Your first day in H-1B status
Standard deduction, 2026: $16,100 for a resident alien for the whole year; none for most nonresident aliens
H-1B from October 1, 2026, inside your five exempt years: Nonresident alien for all of 2026: Form 1040-NR, no standard deduction

For: Single F-1 students on OPT or STEM OPT in 2026, including those moving to H-1B, with no tax treaty benefit.
Not for: Students from India who take the Article 21(2) standard deduction, J-1 researchers and scholars, and anyone filing a dual-status return.

When does my take-home drop?

Your take-home drops when 7.65% Social Security and Medicare tax starts: with your first H-1B paycheck, or when you become a resident alien while on OPT or STEM OPT. Through OPT and STEM OPT as a nonresident, it does not change.

The student exemption ends when you change to a status that is not exempt (IRS). The student exemption in the tax law covers only F, J, M and Q status (Internal Revenue Code section 3121(b)(19)). So H-1B pay owes both taxes from your first day in H-1B status. The IRS says teachers, trainees and researchers in H-1B status owe them "regardless of whether they are nonresident or resident aliens" (IRS).

Social Security tax is 6.2% of wages up to $184,500 in 2026 (SSA), and Medicare tax is 1.45%. Pay above $200,000 from one employer also has a 0.9% Additional Medicare Tax withheld (IRS Topic 560). Exempt OPT pay does not count toward that $200,000.

Residency usually starts in your sixth calendar year in student status, if you spend at least 183 days in the US that year. It can start earlier with 183 days on H-1B (how to count your days). Pick the year you first came:

20221 of 5: exempt, days do not count
20232 of 5: exempt, days do not count
20243 of 5: exempt, days do not count
20254 of 5: exempt, days do not count
20265 of 5: exempt, days do not count
20276th: days count

2026 is your 5th exempt year: you are a nonresident alien.

File Form 8843, and Form 1040-NR as well if you had taxable US income. No Social Security or Medicare tax on campus, CPT or OPT pay. Your days start to count in 2027.

The five exempt calendar years of an F-1 student who first came to the US in 2022, and the year their days start to count. Any part of a calendar year counts as a whole one, and years on F, J, M or Q visas before this one count toward the five (IRC 7701(b)(5)(E)).

Why does my sixth year on STEM OPT look like H-1B?

In your sixth calendar year, 183 days in the US usually make you a resident alien, and a resident on STEM OPT pays what a resident on H-1B pays. Both owe 7.65% on wages, and a resident for the whole year takes the $16,100 standard deduction (Revenue Procedure 2025-32).

Wages for the year$100,000

State you work in

Nonresident alien, years 1 to 5

Federal income tax: $15,632
California income tax: $4,911
Social Security and Medicare: $0
Left: $79,457

Resident alien, year 6 on

Federal income tax: $13,170
California income tax: $4,911
Social Security and Medicare: $7,650
Left: $74,269

As a nonresident you keep $5,188 more of the same pay. Social Security and Medicare tax outweighs what the standard deduction saves.

The same $100,000 salary in California taxed as a nonresident alien in years 1 to 5 and as a resident alien from year 6. From the tax calculator: 2026 figures, single, no treaty, a full year in one state. A resident alien takes the $16,100 standard deduction and pays Social Security and Medicare tax. State payroll programs are not included.

On $100,000 in California, residency adds $7,650 of Social Security and Medicare tax but cuts federal income tax by only $2,462, from $15,632 to $13,170. In Texas the 7.65% costs more than the deduction saves once wages pass a point between $24,000 and $25,000. Do resident or nonresident aliens pay more tax? has the full comparison.

The nonresident's federal tax is lower in California than in Texas ($16,712) because state income tax is deductible on Schedule A (Form 1040-NR). Try your own salary on the California calculator, or compare every state in the state-by-state table.

Publication 519 says Social Security and Medicare tax is withheld from a resident alien's pay even though the F, J, M or Q classification stays the same. A student can stay a nonresident by checking "Yes" on Form 8843 line 12 and attaching a statement (2026 draft Form 8843). The statement must give enough facts to show they do not intend to live in the US permanently. Your sixth year on F-1 explains both.

What does an October 1 H-1B start do to my 2026 paycheck?

Inside your five exempt years, an October 1, 2026 H-1B start gives only 92 counted days, so you stay a nonresident alien for all of 2026. Your income tax does not change, but each H-1B paycheck loses 7.65% to Social Security and Medicare tax.

Worked example: Mei, STEM OPT to H-1B on October 1, 2026

Mei is an illustrative F-1 student who first came in August 2022 and claims no tax treaty. She earns $100,000 a year in Texas: on STEM OPT until September 30, then on H-1B with the same employer and salary. She was in the US all year.

Step	Mei's 2026 figures
Counted days, October 1 to December 31	92, short of 183: nonresident all year
Federal income tax with no standard deduction: $5,800 + 22% of ($100,000 minus $50,400)	$16,712
Social Security and Medicare on H-1B pay: $25,000 times 7.65%, rounded	$1,913
Take-home: $100,000 minus $16,712 minus $1,913	$81,375
Each month, January to September: ($100,000 minus $16,712) divided by 12	$6,941
Each month, October to December: $6,941 minus $638 of Social Security and Medicare	$6,303

The monthly lines spread the year's income tax evenly; real paychecks depend on Form W-4. At 2026 figures, a resident on the same salary keeps $6,598 a month, so her H-1B months, at $6,303, are the lowest of the three stages.

Mei files Form 1040-NR with Form 8843 for 2026 by Thursday, April 15, 2027. In the 2027 substantial presence test, each of her 92 days from 2026 counts as one third of a day. So 153 or more days in the US in 2027 make her a resident (IRS) from her first day here that year: January 1 if she is here then (IRS). As a resident for all of 2027, she takes the standard deduction, which lowers her income tax while the 7.65% stays.

An H-1B start on or before July 2, 2026, with no trips abroad after it, gives 183 or more counted days. You are then a resident from your start date, and 2026 is a dual-status year with no standard deduction (IRS). F-1 to H-1B covers the filing.

What to do next

Find your stage: count your calendar years in student status with the visual above, and note your H-1B start date on your approval notice.
Put your own salary and state into the take-home calculator.
On your first H-1B pay stub, check that Social Security and Medicare tax start. If either was taken from earlier OPT pay while you were a nonresident, ask your employer for it back (FICA refund guide).
For a 2026 spent as a nonresident alien, file Form 1040-NR with Form 8843 by Thursday, April 15, 2027. A resident for all of 2026 files Form 1040 instead.

F1TaxReturn prepares Form 1040-NR and Form 8843 for free, on paper, once the IRS publishes the final 2026 forms and instructions. It does not prepare Form 1040 or dual-status returns. Create an account.

Questions students ask

Yes, from the first day in H-1B status, whether they are a nonresident or a resident alien for income tax, unless a social security agreement with their home country covers them. In 2026 that is 6.2% Social Security tax on wages up to $184,500 and 1.45% Medicare tax. Above $200,000 of wages from one employer, the employer also withholds a 0.9% Additional Medicare Tax.

How much will my paycheck drop when I switch from OPT to H-1B?

If you are still a nonresident alien, your first H-1B paycheck loses 7.65% of gross pay to Social Security and Medicare tax, and your income tax stays the same. On $100,000 a year paid monthly, that is about $638 a month. Your actual paycheck also depends on your Form W-4 and any raise.

Is a resident alien on STEM OPT taxed the same as an H-1B worker?

Yes, if the H-1B worker is also a resident alien and the salary is the same. Once you are a resident alien, the student exemption from Social Security and Medicare tax ends, even though you are still on an F-1. Both then owe 7.65% on wages, a resident for the whole year takes the $16,100 standard deduction, and the state taxes both alike.

Does a tax treaty change these numbers?

These estimates assume no treaty. An income tax treaty generally does not remove Social Security or Medicare tax; relief from those comes from the student rule or a separate social security agreement. No IRS ruling we found settles whether a treaty's student article covers OPT or STEM OPT pay. A student from India who can claim Article 21(2) takes the $16,100 standard deduction even as a nonresident, which raises nonresident take-home.

Sources

This guide is checked against these 14 documents, most recently on October 22, 2026.