This article is for information only and is not tax advice.
A nonresident alien is generally taxed only on income from sources within the United States. Income from sources outside the US is generally not taxed by the US.
A nonresident alien reports US income and tax on Form 1040-NR. Some US income is taxed at graduated rates on the return, and some US income is taxed at a flat rate, usually through withholding.
Which income is taxed for a nonresident alien?
The following table shows how common types of income are generally treated.
| Type of income | General treatment |
|---|---|
| Wages for work that you performed in the US | Taxed. The graduated rates apply. |
| Wages for work that you performed outside the US | Generally not taxed by the US. |
| Other income that is effectively connected with a US trade or business | Taxed. The graduated rates apply. |
| US-source dividends and similar income that is not effectively connected with a US trade or business | Taxed at 30%, or at a lower rate if a tax treaty applies. The payer usually withholds the tax. |
| Interest on deposits with US banks | Generally not taxed, if it is not effectively connected with a US trade or business. |
| Gains from selling stocks or securities | Generally not taxed, unless you were in the US for 183 days or more during the year. The rules differ for some property, such as US real estate. |
The rules depend on your visa, your income type, and your country. A tax treaty can change the result. Sprintax applies these rules to the information that you enter.
What tax rates apply to a nonresident alien?
The US income tax is progressive. The higher your taxable income, the higher the rate on the top part of your income. Income that is taxed at graduated rates uses the rates in the following table. The table shows the 2026 rates for a single filer.
| Tax rate | Taxable income for a single filer |
|---|---|
| 10% | $0 to $12,400 |
| 12% | $12,401 to $50,400 |
| 22% | $50,401 to $105,700 |
| 24% | $105,701 to $201,775 |
| 32% | $201,776 to $256,225 |
| 35% | $256,226 to $640,600 |
| 37% | $640,601 or more |
A married nonresident alien uses the married filing separately status, which has the same rates with different income ranges for the highest brackets. Sprintax uses the IRS tax tables to calculate the tax.
What reduces the tax of a nonresident alien?
A tax treaty between the US and your country. Each treaty has its own rules, income types, and conditions.
Itemized deductions that nonresident aliens can claim, such as state and local income taxes and charitable contributions to US organizations.
Tax that was already withheld or paid. It reduces the amount that you owe or increases your refund.
Can a nonresident alien claim the standard deduction?
No. A nonresident alien cannot claim the standard deduction or a personal exemption. The exception is a student or business apprentice from India, who can claim the standard deduction under the tax treaty. For the 2026 tax year, the standard deduction is $16,100 for a single filer.
How is state tax different from federal tax?
Each state sets its own tax rules and tax rates. A state can tax you differently from the IRS. Some states ask you to report income that you earned outside the US. Sprintax checks your state filing obligation in Step 6 State taxes, and uses the rules of each state.