H1B workers pay the same US taxes as residents. The US uses a progressive federal income tax system where higher income is taxed at a higher rate — but only on the slice of income above each bracket threshold, not your entire salary. Your H1B salary after tax uses the same brackets, standard deduction, and state rules as any W-2 employee.

Standard Deduction (2026): $16,100 for single filers, $32,200 for married filing jointly, $24,150 for head of household. Your taxable income = gross salary − standard deduction − pre-tax deductions (401k, HSA, etc.).

Our H1B salary calculator applies the correct federal brackets and standard deduction for your filing status, then adds state tax and FICA so you can see your exact take-home pay. We support all 50 states with 2026 rates.

FICA (Federal Insurance Contributions Act) taxes fund Social Security and Medicare. H1B workers pay the same FICA rates as US residents — unlike F-1 students on OPT who are often FICA-exempt as nonresident aliens. Use our FICA tax calculator or this H1B salary calculator to see exactly how much is withheld.

Social Security tax is 6.2% on wages up to $184,500 (2026 wage base). Your employer matches this 6.2%. On a $130k H1B salary, Social Security withholding is $8,091/year — and stops once you hit the wage base cap.

Medicare tax is 1.45% on all wages with no cap. High earners pay an additional 0.9% Medicare surtax on wages over $200,000 (single) or $250,000 (married filing jointly). There is no wage base limit for Medicare.

Combined, FICA totals 7.65% for most H1B workers (6.2% + 1.45%). On a $120k salary that is $9,180/year — about $765/month. When transitioning from OPT, this new withholding can feel significant. Contributing to a Traditional 401k partially offsets it by lowering your taxable income.

Federal income tax in the US is progressive: you pay a higher rate only on income in each bracket, not on your entire salary. A single H1B worker earning $130,000 in 2026 pays 10% on the first $12,400, 12% on the next slice, 22% on income from ~$50k to ~$105k, and 24% on income above that — the effective (average) rate is much lower than the top marginal rate.

Your filing status (single, married filing jointly, married filing separately, or head of household) determines which bracket thresholds apply and your standard deduction. Most H1B workers file as Single or Married filing jointly.

Taxable income is gross income minus the standard deduction (or itemized deductions) and above-the-line adjustments like Traditional 401k contributions. Our calculator uses 2026 federal brackets and standard deduction amounts, updated for all IRS adjustments.

State income tax is the biggest driver of take-home pay differences across states for H1B workers. Nine states have no income tax on wages — your H1B salary after tax in Texas or Florida keeps thousands more per year than the same salary in California or New York.

States with no state income tax on wages: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire does not tax wages. H1B workers in these states keep significantly more take-home than peers in California or New York.

State tax rates range from 0% to over 13% (California's top rate). Use the state selector in the calculator to instantly compare your H1B salary after tax in any state — enter your salary once and switch states to see the difference.

H1B workers can contribute to Traditional and Roth 401(k) plans, HSA, FSA, and employer-sponsored health insurance just like US residents. Pre-tax contributions reduce your taxable income, meaning the government subsidizes a portion of what you save.

Traditional 401k: Contributions (up to $23,500 in 2026) are pre-tax — they reduce your federal and most state taxable income immediately. If you are in the 22% bracket, a $10,000 contribution saves ~$2,200 in federal tax plus state tax savings. This is especially valuable when transitioning from OPT, as it partially offsets the new FICA withholding.

Roth 401k: Contributions are after-tax, so they don't reduce current taxes. Qualified withdrawals in retirement are tax-free. Useful if you expect to be in a higher bracket or plan to stay in the US long-term.

Enter your 401k contributions, HSA, and health insurance premiums in the calculator above to see how they reduce your taxable income and improve your take-home pay estimate. Use our dedicated 401(k) Match Calculator to model employer matching.

Your employer must pay at least the H1B prevailing wage for your job title, worksite, and wage level. That amount is your H1B minimum salary for compliance — the floor, not a target. The wage is set by the Department of Labor using occupation (SOC code), worksite (metro or state), and level (1–4).

Benefits and bonus typically do not count toward the prevailing wage requirement — base salary must meet or exceed it. To check compliance, use the DOL FLAG system at flag.dol.gov. Once you know your salary, use this calculator to see your take-home after tax.

H1B salary requirements 2026 follow the same DOL framework as prior years. When comparing offers or evaluating a relocation, pair the prevailing wage lookup with our Offer Comparison Calculator and Relocation Salary Calculator.

The DOL defines four H1B prevailing wage levels tied to income percentiles for each occupation and metro area. Your employer sets the level on the LCA based on job duties, experience, and education requirements.

H1B Level 1 salary and H1B Level 2 salary for the same role and metro can differ by 15–25% or more. Confirm your level on your LCA, then use this H1B salary calculator to see take-home pay for that wage.

F-1 students on OPT and STEM OPT are typically exempt from FICA as nonresident aliens for up to five calendar years of US presence. That exemption ends the day your H1B status becomes active — from that paycheck, Social Security and Medicare are withheld like any US employee.

The combined employee FICA rate is 7.65%: Social Security at 6.2% on wages up to $184,500 (2026) plus Medicare at 1.45% on all wages. On a $120,000 salary that is roughly $9,180/year more withheld — about $765/month — that did not appear on your OPT paychecks. On $150,000 it is closer to $11,475/year.

• FICA starts on your H1B start date, not approval date. A mid-year approval means your first H1B paycheck includes SS and Medicare withholding, even if you are at the same company.
• Six-year rule: If you have been in the US for more than five full calendar years on F-1, you may already be a resident alien under the substantial presence test and may already be paying FICA on OPT. Confirm with your payroll department.
• Pre-tax 401(k) can offset the shock. Contributing Traditional 401(k) reduces your federal and most state taxable income, partially compensating for the new FICA cost. Model this in the Deductions section of the calculator above.

The calculator applies FICA by default because H1B workers are resident aliens. Toggle Social Security or Medicare off only if you have a confirmed exemption.

Many H1B workers in tech and finance receive a significant portion of total compensation as annual bonus and RSU vesting. These are taxed as supplemental wages — withheld at a flat rate that often does not match your actual marginal bracket.

Under-withholding risk: If base salary plus bonus or RSU vesting pushes total income into the 32% or 35% bracket, the 22% supplemental withholding will fall short. You will owe the difference at filing. Increase W-4 extra withholding on regular paychecks to cover it, or make estimated tax payments.

Use our Bonus Tax Calculator or RSU Tax Calculator to model your exact situation. RSUs after an H1B transfer: unvested RSUs from your previous employer that vest post-transfer are taxed as ordinary income in the year of vesting.

Remote work complicates state taxes for H1B workers. The general rule is that you pay state income tax to the state where you physically perform your work, not where your employer is located. But several states use a “convenience of the employer” rule that can require you to pay that state's tax even when working remotely.

• Standard rule (most states): If your employer is in California but you work from Texas, you owe California $0 in state tax and Texas $0 (no income tax). Your W-2 should reflect your work state.
• Convenience-of-employer states (2026): New York, Connecticut, Delaware, Nebraska, Pennsylvania, and Oregon. These states tax nonresident employees of in-state employers on all wages unless the remote work is required by the employer. A NY-based company with an H1B worker living in NJ may still withhold NY tax unless the arrangement is documented as employer-required.
• NY / NJ double taxation risk: NJ residents who work for NYC employers may owe both NY and NJ tax. NJ gives a credit for NY tax paid, but it may not fully offset the difference.
• California's long reach: Partial-year residency during an H1B transfer or relocation means only income earned while domiciled in California is subject to CA tax.

Use the H1B salary calculator with your actual work state, not your employer's HQ state, to get the correct take-home estimate.

H1B salary by state differs mainly because of state income tax. Nine states have no state income tax, so the same gross salary yields higher take-home than in California or New York.

For cost-of-living-adjusted comparisons between job offers in different cities, use our Relocation Salary Calculator and Offer Comparison Calculator.

When you transfer, the new employer must pay at least the prevailing wage for the new role and worksite. H1B transfer salary requirements are the same as for initial H1B: the wage on the new LCA must be met or exceeded. The new salary does not have to be higher than your current one, but it must satisfy the new LCA.

Use this H1B salary calculator to model take-home at the new employer's location, and our Offer Comparison Calculator if you have multiple offers to compare after tax.

• Comparing on gross only. A $130k offer in Texas can net more than $135k in California. Use this H1B salary calculator for H1B salary by state before deciding.
• Counting bonus toward prevailing wage. DOL wage is usually base salary — confirm with your employer or attorney.
• Wrong wage level on the LCA. Level 1 vs Level 2 is a significant gap; ensure the level matches your actual job duties and experience.
• Ignoring FICA when coming from OPT. Social Security and Medicare apply to H1B workers — this can mean $600–$1,000+ less per month than your OPT paychecks.
• Ignoring cost of living. Use our Relocation Salary Calculator for real purchasing power after tax and housing.
• Under-withholding on bonus or RSU. The 22% flat withholding may not cover your bracket — model it with our Bonus Tax Calculator.