Tax year 2026Checked
How much tax will I pay on OPT? 2026 examples by salary
Federal tax, state tax and take-home pay for a nonresident on OPT at $60,000, $90,000 and $120,000 in 2026, in Texas and Illinois, with the India and sixth-year differences.
In short
- On $90,000 of 2026 OPT pay with no tax treaty, a nonresident alien pays about $14,512 of federal income tax and $0 of Social Security and Medicare tax.
- Nonresident aliens generally cannot take the $16,100 standard deduction on Form 1040-NR, so federal tax applies from the first dollar of OPT pay. Students and business apprentices from India are the exception, if their treaty article still applies to them on OPT.
- In Illinois, $90,000 of OPT pay adds about $4,310 of state tax (4.95% after the $2,925 exemption), and deducting it on Schedule A (Form 1040-NR) lowers federal tax to about $13,564.
- The exemption from Social Security and Medicare tax saves a nonresident 7.65% of pay: $4,590 at $60,000, $6,885 at $90,000 and $9,180 at $120,000.
- If you become a resident alien in your sixth calendar year, you gain the standard deduction but pay 7.65% Social Security and Medicare tax, so take-home on $90,000 in Texas falls by about $3,343.
Contents, 10 sections
In 2026, a nonresident F-1 graduate on OPT with no tax treaty pays about $14,512 of federal income tax on a $90,000 salary in Texas. In Illinois, the same salary costs about $17,874 in federal and state tax, and Social Security and Medicare tax are $0 in both states while you are a nonresident alien.
The figures below come from the engine behind our 2026 take-home calculator, using the 2026 federal brackets in Rev. Proc. 2025-32.
How much tax do I pay on OPT at $60,000, $90,000 and $120,000?
A nonresident on OPT with no treaty pays 13.2% to 17.8% of salary in federal tax in Texas, and 16.9% to 21.5% in federal and state tax combined in Illinois. Social Security and Medicare tax are $0 at every salary.
- Federal income tax
- $13,564
- Illinois income tax
- $4,310
- Left after these taxes
- $72,126
Social Security and Medicare: $0. A US worker earning the same would pay $6,885.
In Texas, which has no state income tax:
| Salary | Take-home | Federal tax |
|---|---|---|
| $60,000 | $52,088 | $7,912 |
| $90,000 | $75,488 | $14,512 |
| $120,000 | $98,602 | $21,398 |
In Illinois, which taxes income at 4.95%:
| Salary | Take-home | Federal tax | Illinois tax |
|---|---|---|---|
| $60,000 | $49,884 | $7,291 | $2,825 |
| $90,000 | $72,126 | $13,564 | $4,310 |
| $120,000 | $94,198 | $20,007 | $5,795 |
Divided by 12, the take-home pay comes to these monthly amounts:
| Salary | Texas, per month | Illinois, per month |
|---|---|---|
| $60,000 | $4,341 | $4,157 |
| $90,000 | $6,291 | $6,011 |
| $120,000 | $8,217 | $7,850 |
These figures assume you are single, a nonresident alien and paid the salary for all of 2026. They also assume no other income, no tax treaty and no payroll deductions such as a 401(k) or health insurance. In Illinois, they assume your employer withholds exactly your Illinois tax, which you then deduct on your federal return. They are your tax for the year, not what each paycheck withholds (see the last section).
Your federal figures are the same in any state that does not tax wages; the state-by-state guide lists them.
Key facts
- Social Security and Medicare on OPT pay
- $0 while you are a nonresident alien in F-1 status
- Standard deduction on Form 1040-NR
- None, except students and business apprentices from India ($16,100)
- 2026 federal rates, single filer
- 10% to $12,400, 12% to $50,400, 22% to $105,700, 24% to $201,775
- Illinois income tax, 2026
- 4.95% after a $2,925 personal exemption
- Texas income tax
- None
- Form 1040-NR due if you had wages
- Thursday, April 15, 2027
- For
- F-1 students and graduates on OPT or STEM OPT who are nonresident aliens for all of 2026, file as single and have no income other than their OPT pay.
- Not for
- H-1B workers, F-2 and J-2 family members, and anyone with other income, a spouse on the return or a treaty wage exemption. Resident aliens file Form 1040; the sixth-year section shows only what changes.
Why is tax on OPT different from a normal paycheck calculator?
A nonresident alien on OPT generally gets no standard deduction and pays no Social Security or Medicare tax. A paycheck calculator built for US residents assumes the opposite on both, so it shows too little income tax and too much payroll tax for you.
Nonresident aliens generally cannot claim the 2026 standard deduction of $16,100 for a single filer (IRS: nonresident figuring your tax; Rev. Proc. 2025-32), so taxable income starts at your full salary. Students and business apprentices from India are the exception, covered below.
Section 3121(b)(19) of the Internal Revenue Code exempts nonresident aliens in F, J, M or Q status from Social Security and Medicare tax (26 U.S.C. 3121). The work must serve the purpose of that status, and the IRS lists practical training on or off campus, including OPT and STEM OPT, as such work (IRS). Most other employees pay 6.2% Social Security tax on wages up to $184,500 in 2026 (SSA) and 1.45% Medicare tax on all wages (26 U.S.C. 3101).
| $90,000 in Texas, 2026 | Nonresident on OPT | US resident worker |
|---|---|---|
| Standard deduction | $0 | $16,100 |
| Taxable income | $90,000 | $73,900 |
| Federal income tax | $14,512 | $10,970 |
| Social Security and Medicare (7.65%) | $0 | $6,885 |
| Total tax | $14,512 | $17,855 |
| Take-home pay | $75,488 | $72,145 |
A proposed law, not current law
Two bills named the OPT Fair Tax Act, S. 2940 and H.R. 8972, would make OPT pay subject to Social Security and Medicare tax. As of October 2026, neither had passed either chamber (Congress.gov). Under current law, a nonresident student's 2026 OPT pay is exempt from both taxes.
How is the federal tax on OPT pay worked out?
Federal tax on OPT pay comes from the 2026 single-filer rates, applied to taxable income, which for a nonresident with no deductions is the full salary. The salary goes on line 1a of the 2026 draft Form 1040-NR.
The 2026 rates for a single filer (IRS: 2026 tax brackets):
| 2026 taxable income | Federal income tax |
|---|---|
| Up to $12,400 | 10% |
| $12,400 to $50,400 | $1,240 plus 12% of the amount over $12,400 |
| $50,400 to $105,700 | $5,800 plus 22% of the amount over $50,400 |
| $105,700 to $201,775 | $17,966 plus 24% of the amount over $105,700 |
| Over $201,775 | 32% to 37% on the higher amounts |
For the three Texas salaries:
| OPT salary | Arithmetic | Federal tax |
|---|---|---|
| $60,000 | $5,800 plus 22% of $9,600 ($60,000 minus $50,400) | $7,912 |
| $90,000 | $5,800 plus 22% of $39,600 ($90,000 minus $50,400) | $14,512 |
| $120,000 | $17,966 plus 24% of $14,300 ($120,000 minus $105,700) | $21,398 |
The IRS Tax Table can differ from this formula by a few dollars.
How much state tax will I pay on OPT?
State tax on OPT pay depends on the state you live and work in. Texas has no state income tax, and Illinois taxes income at a flat 4.95% after a personal exemption of $2,925 for 2026, which is $4,310 on a $90,000 salary.
Illinois starts from your federal adjusted gross income, here your salary. If all your income is Illinois wages, you get the full $2,925 exemption whether Illinois treats you as a resident or as a nonresident filing Schedule NR. The Illinois guide explains the return.
State tax also lowers your federal tax. A nonresident can deduct state and local income taxes, usually the state tax withheld from pay, on line 1a of the 2026 draft Schedule A (Form 1040-NR). The 2026 cap is $40,400, far above the tax on an OPT salary. That is why the Illinois federal figures are lower than the Texas ones.
Worked example: Daniela, F-1 graduate on OPT in Chicago in 2026
Daniela is an illustrative graduate. She first came to the US as an F-1 student in August 2023, so 2026 is her fourth calendar year in student status. She is a nonresident alien for all of 2026, and no tax treaty applies to her pay in this example.
She earns $90,000 at an OPT job in Chicago from January to December 2026, with no 401(k) or other payroll deductions. Assume her employer withholds $4,310 of Illinois tax during 2026, the same as her Illinois tax.
| Step | Amount |
|---|---|
| Social Security and Medicare (exempt) | $0 |
| Illinois: $90,000 minus the $2,925 exemption | $87,075 |
| Illinois tax: 4.95% of $87,075 | $4,310 |
| Federal: wages on Form 1040-NR line 1a | $90,000 |
| Schedule A: Illinois income tax withheld in 2026 | $4,310 |
| Taxable income: $90,000 minus $4,310 | $85,690 |
| Federal tax: $5,800 plus 22% of ($85,690 minus $50,400), which is $5,800 plus $7,764 | $13,564 |
| Total tax: $13,564 plus $4,310 | $17,874 |
| Take-home pay: $90,000 minus $17,874 | $72,126 |
Her federal tax is $948 less than the $14,512 owed on the same pay in Texas, because she deducted her Illinois tax: 22% of $4,310 = $948. A US resident worker would also pay $6,885 of Social Security and Medicare tax on the same pay.
California, New York and Massachusetts also tax wages, but some of their 2026 figures were not yet published as of October 14, 2026. So this page gives no 2026 examples for them. The calculator's state pages, such as California, say when they use 2025 figures. If you worked in two states, the two-state guide explains which one taxes what.
What if I am from India?
Students and business apprentices from India can take the $16,100 standard deduction on Form 1040-NR under Article 21(2) of the US-India tax treaty. If it applies to you on OPT, federal tax on $90,000 falls from $14,512 to $10,970.
The benefit is a deduction, not an exemption, so your wages stay on line 1a in full (IRS: nonresident figuring your tax).
| Salary (Texas) | No treaty | With $16,100 deduction | You save |
|---|---|---|---|
| $60,000 | $7,912 | $5,020 | $2,892 |
| $90,000 | $14,512 | $10,970 | $3,542 |
| $120,000 | $21,398 | $17,570 | $3,828 |
In Illinois, you take either the standard deduction or your itemized state tax, not both (2026 draft Form 1040-NR, line 12a). The $16,100 is larger, so federal tax matches the Texas column, and take-home on $90,000 in Illinois is $74,720.
We found no IRS ruling on whether a student treaty article still applies to OPT or STEM OPT pay, so this page does not answer that for any country. Read the India treaty guide before you claim it, and consider advice from a tax professional. The same open question applies to treaties that exempt a fixed amount of a student's pay, such as up to $5,000 a year for China (US-China treaty).
What changes in my sixth year on OPT?
If 2026 is your sixth calendar year in student status and you are in the US at least 183 days, you usually become a resident alien. You then get the $16,100 standard deduction, but you pay 7.65% Social Security and Medicare tax on OPT pay (IRS).
Nonresident alien, years 1 to 5
- Federal income tax
- $14,512
- Social Security and Medicare
- $0
- Left
- $75,488
Resident alien, year 6 on
- Federal income tax
- $10,970
- Social Security and Medicare
- $6,885
- Left
- $72,145
As a nonresident you keep $3,343 more of the same pay. Social Security and Medicare tax outweighs what the standard deduction saves.
Students leave their days out of the substantial presence test for 5 calendar years, and any part of a year counts as a whole year (IRS). This table assumes you were a resident for all of 2026, in Texas.
| Salary (Texas) | Nonresident take-home | Resident take-home | Difference |
|---|---|---|---|
| $60,000 | $52,088 | $50,390 | $1,698 |
| $90,000 | $75,488 | $72,145 | $3,343 |
| $120,000 | $98,602 | $93,250 | $5,352 |
For a student from India who already took the standard deduction, all $6,885 of Social Security and Medicare tax at $90,000 is extra tax. Your residency starts on January 1 if you were in the US that day (IRS: residency starting and ending dates).
A resident alien for all of 2026 files Form 1040 and is taxed on worldwide income. A student who can show they do not intend to live in the US permanently can stay a nonresident after five years. They answer line 12 of the 2026 draft Form 8843 and attach a statement. The sixth-year guide covers both, and the substantial presence test guide shows how to count your years.
Why is my paycheck different from these numbers?
Your paychecks show withholding, not your final tax. Employers add an extra amount to a nonresident's wages when they work out income tax withholding, because nonresidents generally cannot take the standard deduction (Publication 15-T).
That extra amount is used only to work out withholding: it is not wages, is not on your W-2 and does not change the tax you owe. Students and business apprentices from India are not subject to it. If more was withheld than your tax, you get the difference back only by filing Form 1040-NR; the refund guide explains how it arrives.
Payroll deductions, such as a 401(k) or health insurance, also change your paycheck; the calculator lets you add them. Fill in Form W-4 using Notice 1392, as the OPT tax guide shows. The IRS Tax Withholding Estimator is not for nonresident aliens (IRS FAQs).
If your pay stub shows Social Security or Medicare tax while you are a nonresident alien, ask your employer to refund it. If it will not, the FICA refund guide shows how to claim it from the IRS.
What to do next
- Run your own salary, state and first year in the US through the 2026 take-home calculator, or its Texas and Illinois pages. It can read a text-based PDF pay stub in your browser without uploading it.
- Check your latest pay stub for Social Security or Medicare lines. While you are a nonresident alien, both should be $0.
- Count your calendar years in student status with the substantial presence test guide, so you know whether 2026 or 2027 is your sixth year.
- Expect your 2026 W-2 by Monday, February 1, 2027. File Form 1040-NR with Form 8843 by Thursday, April 15, 2027. The Illinois return is expected to be due the same day; Illinois has not published its 2027 date, and for tax year 2025 it was April 15, 2026.
- F1TaxReturn prepares Form 1040-NR and Form 8843 for free, as a paper return you sign and mail, once the IRS publishes the final 2026 forms. An Illinois return costs $30 plus a $2 processing fee. It does not prepare Form 1040 for resident aliens. Start your return.
Questions students ask
How much is $100,000 on OPT after tax in Texas?
Do I pay Social Security and Medicare tax on OPT?
Is OPT pay taxed at a flat 30%?
Will I get a tax refund on OPT?
Sources
This guide is checked against these 19 documents, most recently on .
- Working Families Tax Cuts: individuals and workers (2026 tax brackets), IRS
- Revenue Procedure 2025-32 (2026 inflation adjustments), IRS
- Nonresident: figuring your tax, IRS
- Foreign student liability for Social Security and Medicare taxes, IRS
- Contribution and benefit base, Social Security Administration
- 26 U.S. Code 3121, definitions (section 3121(b)(19)), US Code (Legal Information Institute)
- 26 U.S. Code 3101, rate of tax (Social Security and Medicare), US Code (Legal Information Institute)
- Form 1040-NR (2026 draft), IRS
- Schedule A (Form 1040-NR) (2026 draft), IRS
- Informational Bulletin FY 2026-15, What's New for Illinois Income Taxes, Illinois Department of Revenue
- IL-700-T, Illinois Withholding Tax Tables (2026), Illinois Department of Revenue
- Texas is open for small business (state tax rates), Texas Comptroller of Public Accounts
- Income tax treaty between the United States and the People's Republic of China, IRS
- Exempt individual: who is a student, IRS
- Residency starting and ending dates, IRS
- Publication 15-T (2026), Federal Income Tax Withholding Methods, IRS
- Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens, IRS
- Tax Withholding Estimator FAQs, IRS
- S. 2940, OPT Fair Tax Act: all actions, Congress.gov (Library of Congress)