US Taxes for Newcomers: Types, Tax Residency and Deadlines

Which taxes do you actually pay?

US taxes come in layers, and each layer belongs to a different government. The IRS collects federal income tax and FICA. Your state collects its own income tax. Your county or city sets property tax and, in some places, a local income tax.

That is why the take-home pay on your first paystub can look far smaller than the salary in your offer letter. Here is the full picture:

Sales tax usually isn't included in the shelf price, and the rate can change from one town to the next. Renters don't get a property tax bill, but it is baked into the rent.

Are you a resident or a nonresident for tax purposes?

Tax residency is not the same as immigration status, and it decides which form you file and what income you report. The IRS treats you as a resident alien if you pass either of two tests.

The green card test

If you were a lawful permanent resident at any time during the year, you are a tax resident. That status continues until you formally give up the green card in writing to USCIS or it is terminated by USCIS or a federal court. An expired card does not end tax residency on its own, so keep up with green card renewal and keep filing.

The substantial presence test

Without a green card, you are a resident if you were physically present in the US for at least 31 days this year and at least 183 days over three years, counted as: all days this year, plus one-third of last year's days, plus one-sixth of the days from the year before.

Example: someone who spent 120 days in the US in each of 2024, 2025 and 2026 counts 120 + 40 + 20 = 180 days. That is under 183, so they don't meet the test for 2026.

Some visa holders are "exempt individuals" whose days don't count, including students on F, J, M or Q visas and teachers or trainees on J or Q visas, subject to conditions. To exclude those days you must file Form 8843; skip it and the days count. Students should also read our F-1 guide.

The year your status changes, for example arriving on an immigrant visa in June, is a "dual-status" year with its own rules in Publication 519. If your spouse is a citizen or resident, you may be able to elect to treat the nonresident spouse as a resident and file jointly, as long as both of you report worldwide income.

How is federal income tax calculated?

Federal tax is progressive: each slice of income is taxed at its own rate, not the whole amount at your top rate. First you subtract the standard deduction, which is income you pay no tax on.

For tax year 2026 (the return you'll file in 2027), the IRS set the standard deduction at $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household. The 2026 brackets:

Simplified example: a single employee earning $50,000 in 2026 with no other income subtracts $16,100, leaving $33,900 taxable. The first $12,400 at 10% is $1,240; the remaining $21,500 at 12% is $2,580. Total: about $3,820 before any credits, under 8% of salary even though they are "in the 12% bracket." Official figures live on the IRS rates and brackets page.

What is FICA on your paystub?

FICA funds Social Security and Medicare. Employees pay 6.2% for Social Security and 1.45% for Medicare, and the employer pays a matching amount. Social Security stops at a wage cap, $184,500 for 2026 wages; Medicare has no cap, and an extra 0.9% applies to wages over $200,000. On a $50,000 salary that's roughly $3,100 plus $725.

If you work for yourself (delivery driver, freelancer, small shop owner), you are both employee and employer and owe self-employment tax of 15.3% once net earnings reach $400. Those payments build your future benefits, which is one more reason your Social Security number and name must match exactly.

What about state and city taxes?

Every state writes its own tax code. Some don't tax wages at all, some use a flat rate, and others use brackets like the federal system. A few cities add their own income tax. Move between states mid-year and you may file a part-year return in each.

Your state's revenue department is the authority; the IRS keeps a list of official state websites. When comparing states before a move, remember that a state with no income tax may lean harder on sales or property tax. Our cost of living guide puts it together.

Do you owe US tax on income from back home?

If you're a tax resident, yes, you report it: rent from an apartment in Cairo, interest on a deposit in Amman, profit from a business in Baghdad. That doesn't automatically mean paying twice. If you paid income tax abroad on the same income, you can usually claim the foreign tax credit on Form 1116, which the IRS says is usually worth more than deducting it. Keep the foreign tax receipts, ideally with translations.

Bank accounts outside the US can trigger a separate reporting duty; see our FBAR guide.

When is your return due?

For 2025 income the deadline was April 15, 2026, and extended returns are due October 15, 2026. An extension gives you more time to file, not more time to pay. If a date falls on a weekend or holiday it moves to the next business day; check the IRS when to file page each season.

How can you file for free?

• VITA: trained volunteers prepare returns free for people earning about $70,244 or less (per the IRS page as of September 2026), people with disabilities, and limited-English speakers. Ask when you book whether the site can help in Arabic. Find one at 800-906-9887 or the IRS VITA page.
• TCE: for people 60 and older, focused on pensions and retirement questions.
• IRS Free File: free brand-name software for adjusted gross income of $89,000 or less (2025 returns).
• Free File Fillable Forms: free for any income, but minimal guidance and no state return.

If you pay a preparer, make sure they have a PTIN and sign your return, and walk away from anyone who charges a percentage of your refund or wants it deposited into their account.

Common mistakes

• Assuming no income means no filing: an F-1 student may still need Form 8843.
• Leaving out income from abroad: report it, then claim the foreign tax credit.
• No bank account: the IRS began phasing out paper refund checks on September 30, 2025. Open an account before tax season.
• Treating an extension as permission to pay late: penalties and interest run from the original due date.
• Name spelled three ways: Mohamed, Mohammed, Muhammad. Use exactly what's on your Social Security card.
• Believing threatening "IRS" calls: the IRS normally contacts you first by mail and never demands gift cards. See our guide to official letters.

What next?

1. Work out your 2026 status: green card, or count your days.
2. Keep one folder for every income form that arrives in early 2027.
3. Create your IRS online account to see what the IRS has on file.
4. Follow our step-by-step first tax return guide, and if you have kids, read the EITC and Child Tax Credit guide.
5. No SSN and not eligible for one? Start with an ITIN.

Frequently asked questions

Official sources we reviewed

• IRS — Substantial presence test ↗
• IRS — Alien residency: green card test ↗
• IRS — Tax inflation adjustments for tax year 2026 (IR-2025-103) ↗
• IRS — Topic 751, Social Security and Medicare withholding rates ↗
• IRS — When to file ↗
• IRS — Free tax return preparation for qualifying taxpayers (VITA/TCE) ↗
• IRS — IRS Free File ↗
• IRS — Publication 519, U.S. Tax Guide for Aliens ↗