Tax year 2026Checked October 22, 2026

Do resident or nonresident aliens pay more tax in 2026?

A resident alien gets the $16,100 standard deduction but pays 7.65% Social Security and Medicare tax. We ran the same 2026 wages both ways in four states.

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

In short

In our 2026 estimate for Texas (wages only, single, no treaty), a resident alien pays less income tax plus Social Security and Medicare tax than a nonresident below about $24,100 of wages, and more above it.
In our 2026 estimate for $100,000 of wages in Texas, a nonresident keeps $4,108 more: the $16,100 standard deduction saves a resident $3,542 of income tax, but Social Security and Medicare tax costs $7,650.
In our 2026 estimates for California, New York and Illinois, the two pay the same at a lower wage, about $22,100 to $23,900, because a nonresident deducts state income tax on Schedule A (Form 1040-NR).
Pay from the school where you are enrolled and regularly attending classes is usually free of Social Security and Medicare tax even for a resident. The exception does not apply if you normally work 40 hours a week or more (Rev. Proc. 2005-11), or at a public university whose state Section 218 agreement covers student workers.
A single student cannot choose to be a resident for all of 2026: the first-year choice gives a dual-status return with no standard deduction, and only a joint Form 1040 with a US citizen or resident spouse covers the whole year.

Contents, 9 sections

For a single F-1 or J-1 student paid only off-campus wages, a resident alien pays less US tax than a nonresident alien on low pay and more on higher pay. In our 2026 estimate for Texas, the two pay the same at about $24,100 of wages, and at $100,000 the nonresident keeps $4,108 more.

A resident gets the $16,100 standard deduction (Revenue Procedure 2025-32) but pays 7.65% Social Security and Medicare tax (IRS). A nonresident F-1 or J-1 student usually has neither (IRS). The residency rules in the guide to US taxes for international students decide which one you are.

Who pays more tax on the same wages?

In our 2026 estimate for Texas, a resident alien pays less tax than a nonresident below about $24,100 of wages and more above it. Texas has no income tax on wages, so the totals are federal income tax plus Social Security and Medicare tax.

Wages for the year$20,000

State you work in

Nonresident alien, years 1 to 5

Federal income tax: $2,152
Social Security and Medicare: $0
Left: $17,848

Resident alien, year 6 on

Federal income tax: $390
Social Security and Medicare: $1,530
Left: $18,080

As a resident you keep $232 more of the same pay. The standard deduction saves more income tax than Social Security and Medicare tax costs.

The same $20,000 of 2026 pay in Texas 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.

Worked example: Daniela, $20,000 of CPT pay in Texas in 2026

Daniela, an illustrative F-1 doctoral student, earns $20,000 of CPT pay from an outside company. She has no other income and no tax treaty.

As a nonresident she owes 10% of $12,400 ($1,240) plus 12% of $7,600 ($912) = $2,152. As a resident she owes 10% of $3,900 ($20,000 minus $16,100) = $390, plus 7.65% of $20,000 = $1,530, so $1,920. Residency saves her $232.

Estimated 2026 federal income tax plus Social Security and Medicare tax on the same wages in Texas.
Wages	Nonresident, years 1 to 5	Resident, year 6 on	Who keeps more
$20,000	$2,152	$1,920	Resident, by $232
$24,000	$2,632	$2,626	Resident, by $6
$25,000	$2,752	$2,803	Nonresident, by $51
$50,000	$5,752	$7,645	Nonresident, by $1,893
$100,000	$16,712	$20,820	Nonresident, by $4,108
$150,000	$28,598	$36,209	Nonresident, by $7,611

These are estimates for tax year 2026 from the Texas tax calculator: wages only, single, no treaty, a full year in one state. The IRS Tax Table can differ by a few dollars.

Key facts

Standard deduction, 2026: $16,100 for a single resident alien for the whole year; $0 for most nonresident aliens
Social Security and Medicare tax, 2026: 7.65% of a resident's wages (6.2% up to $184,500, plus 1.45%), unless the student exception for work at your own school applies; none on a nonresident's F-1 or J-1 student work
Where both pay the same (Texas, estimate): About $24,100 of wages
Gap on $100,000 in Texas (estimate): A nonresident keeps $4,108 more
Choosing to be a resident: Only the first-year choice (dual-status) or a joint return with a US citizen or resident spouse
Staying a nonresident after five years: Line 12 of the 2026 draft Form 8843, with a statement

For: Single F-1 and J-1 students paid US wages in 2026 who want to compare tax as a nonresident alien and as a resident alien.
Not for: Students with treaty-exempt pay, students from India who claim Article 21(2), and anyone with large investment or home-country income. These estimates cover taxable wages only.

Why does the answer change at about $24,100?

The standard deduction saves a resident the income tax on only $16,100 of pay, while Social Security and Medicare tax takes 7.65% of every dollar. At low wages the deduction saves more; at higher wages the 7.65% costs more.

At $20,000 the standard deduction saves $2,152 minus $390 = $1,762, more than the $1,530 of Social Security and Medicare tax. At $100,000 it saves 22% of $16,100 = $3,542, less than the $7,650.

The 7.65% is 6.2% Social Security tax on wages up to $184,500 (SSA) plus 1.45% Medicare tax. The OPT, STEM OPT and H-1B guide shows when it starts on your paycheck.

Does a state income tax change the answer?

A state income tax lowers the point where both pay the same: in our 2026 estimates it is about $22,100 to $23,900 in California, New York and Illinois. A nonresident deducts state income tax on Schedule A (Form 1040-NR), while a resident who takes the standard deduction gets nothing extra for it.

Estimated 2026 wage where both pay the same, and how much more a nonresident keeps (wages only, single, no treaty, a full year in the state).
State	Resident pays less below about	Nonresident keeps more at $50,000	Nonresident keeps more at $100,000
Texas	$24,100	$1,893	$4,108
California	$23,900	$2,010	$5,188
New York (outside New York City)	$22,800	$2,145	$5,177
Illinois	$22,100	$2,173	$5,165

The state figures use 2026 rates for California (FTB), New York (IT-2105-I) and Illinois (IL-700-T). Massachusetts is left out. The calculator omits its deduction of up to $2,000 for Social Security and Medicare tax paid (2025 Form 1-NR/PY instructions, line 15), which lowers a resident alien's tax there. State payroll programs such as California State Disability Insurance (SDI) may also be withheld; check your pay stub.

What if I work for my own university?

Pay from the school where you are enrolled and regularly attending classes is usually free of Social Security and Medicare tax, even for a resident alien. On that pay, residency usually lowers your tax: on $20,000, a resident owes an estimated $390 of federal income tax and a nonresident $2,152.

The student exception never covers OPT or CPT with an outside company (IRS). It does not apply if you normally work 40 hours or more a week (Rev. Proc. 2005-11), or at a public university whose state Social Security (Section 218) agreement covers student workers. See the on-campus job guide and campus job take-home pay.

Can I choose to be a resident or a nonresident alien?

A single F-1 student usually cannot choose a status: the five exempt calendar years and the substantial presence test decide it. From the sixth calendar year, 183 days in the US usually make you a resident.

20211 of 5: exempt, days do not count
20222 of 5: exempt, days do not count
20233 of 5: exempt, days do not count
20244 of 5: exempt, days do not count
20255 of 5: exempt, days do not count
20266th: days count

2026 is your 6th year: your days now count.

Most students who stay all year pass the 183-day test and become resident aliens: Form 1040, the standard deduction, and Social Security and Medicare tax on most pay (work for your own school while you are enrolled can stay exempt). Residency starts on the first day you were in the US this year. You stay exempt only if you show the IRS you do not intend to live in the US permanently (Form 8843, Part III).

The five exempt calendar years of a student who first came in 2021, and why their days in 2026 count toward residency. 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)).

The three routes that can change a student's 2026 status, and what each costs.
Route	Who can use it	What it costs
First-year choice	You were not a resident in 2025 or 2026, meet the substantial presence test in 2027, and spent 31 days in a row in the US in 2026	A dual-status 2026 return with no standard deduction (IRS), filed after you meet the 2027 test; revocable only with IRS approval
Joint return with your spouse	Married to a US citizen or resident at the end of 2026 (not two nonresidents such as F-1 and F-2)	Both of you report worldwide income until the choice ends, generally without treaty benefits
Form 8843 line 12	A student past five calendar years with no intent to live in the US permanently	A statement proving four conditions, judged by the IRS on the facts

The first-year choice also needs you in the US on 75% of the days from the start of those 31 days to December 31 (IRS). Exempt student days do not count toward the 31 days or the 75%. You need days that are not exempt, such as on an H-1B that starts late in the year.

On a joint return the couple takes the $32,200 joint standard deduction. The nonresident spouse may still be treated as a nonresident for Social Security and Medicare tax withholding (IRS). See married to a US citizen on an F-1 visa.

If you qualify, line 12 of the 2026 draft Form 8843 keeps you a nonresident and exempt from Social Security and Medicare tax. The sixth-year guide explains the four conditions.

What else changes when you become a resident?

A resident alien files Form 1040 and reports worldwide income, such as interest from a bank account at home (Publication 519). Most tax treaty benefits end too.

Many treaties keep the student article for residents who are not US citizens or green card holders, within its own conditions and time limits (IRS; treaty benefits by country).

What to do next

Pick your first year in the US in the year strip above to see which column of the Texas table applies to you.
Enter your wages, state and first year in the US in the tax calculator for your own 2026 estimate.
Check your pay stub: a resident's off-campus pay shows Social Security and Medicare tax, and a nonresident's F-1 or J-1 pay should not (FICA refund guide).
Considering the first-year choice or a joint return? Get professional advice first. The first-year choice cannot be revoked without IRS approval, and once a joint-return choice ends, neither spouse can make it again (Publication 519).
If you were paid wages subject to US income tax withholding in 2026, file by Thursday, April 15, 2027: Form 1040-NR with Form 8843 as a nonresident, or Form 1040 as a resident (tax deadlines).

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

Questions students ask

Is it better to be a resident or a nonresident alien for taxes?

On off-campus wages alone, being a nonresident costs less once your pay passes about $24,100, and being a resident costs less below that, in our 2026 estimate for Texas. A resident also reports worldwide income and loses most treaty benefits. You usually cannot pick your status, so the comparison mainly tells you what to expect when it changes.

Can an F-1 student choose to be a resident alien?

Not for a full year on their own. A single student can use the first-year choice only with 31 days in a row in the US in 2026 that are not exempt student days, such as after a change to H-1B, and only after meeting the substantial presence test in 2027. It makes 2026 a dual-status year with no standard deduction. A student married to a US citizen or resident at the end of 2026 can choose, with the spouse, to file a joint Form 1040 as a resident for the whole year.

Do I pay more tax after five years on F-1?

Usually, if you earn more than about $24,100 off campus in Texas, or a little less in California, New York or Illinois, in our 2026 estimates. In your sixth calendar year, 183 days in the US usually make you a resident unless you claim the exception on line 12 of the 2026 draft Form 8843, and your off-campus pay then owes 7.65% Social Security and Medicare tax. On $60,000 in Texas, our 2026 estimate is $1,698 more in total.

Do students from India pay more tax as residents?

A student from India who qualifies for Article 21(2) of the US-India treaty already takes the $16,100 standard deduction as a nonresident. For that student, becoming a resident adds Social Security and Medicare tax on off-campus pay without adding a deduction. We found no IRS ruling on whether a student on OPT still qualifies for Article 21(2).

The choice is for income tax. The IRS says the nonresident spouse may still be treated as a nonresident for Social Security and Medicare tax withholding. The couple files a joint Form 1040, takes the $32,200 joint standard deduction for 2026 and reports worldwide income.

Sources

This guide is checked against these 18 documents, most recently on October 22, 2026.

Revenue Procedure 2025-32 (2026 inflation adjustments), IRS
Publication 519 (2025), U.S. Tax Guide for Aliens, IRS
Nonresident: figuring your tax, IRS
Foreign student liability for Social Security and Medicare taxes, IRS
Contribution and benefit base, Social Security Administration
Student FICA exception, IRS
Revenue Procedure 2005-11 (student FICA exception), IRS
Schedule A (Form 1040-NR) (2026 draft), Itemized Deductions, IRS
Tax residency status: first-year choice, IRS
Taxation of dual-status individuals, IRS
Nonresident spouse, IRS
The closer connection exception to the substantial presence test for foreign students, IRS
Form 8843 (2026 draft), IRS
Withholding certificates and exemptions for personal services and students, IRS
Tax News, October 2026 (2026 tax rate schedules, standard deduction and exemption credit), California Franchise Tax Board
Instructions for Form IT-2105 (2026), estimated tax (2026 rate schedules and standard deduction), New York State Department of Taxation and Finance
IL-700-T (2026), Illinois Withholding Tax Tables, Illinois Department of Revenue
2025 Massachusetts Form 1-NR/PY instructions, Massachusetts Department of Revenue