Tax Witholding on Payments

Standard Withholding Rates for Nonresident Aliens

Wages/Employment Compensation

• Employment compensation is taxed at graduated rates
  
  

There are special withholding rules for employees from Canada, Korea, Mexico, the Northern Mariana Islands, American Samoa, and students from India.

Special Withholding Rules

Scholarships/Fellowships

• F, J, M, and Q visas - 14% tax rate

• Other Visas - 30% tax rate

Honoraria, Independent Contractor Payments, Royalties, Awards, Prizes and other payments

• 30% tax rate

See IRS Publication 519 U.S. Tax Guide for Aliens for additional information.

NOTE: Tax treaties may reduce or eliminate tax withholding. See the Tax Treaty information section to see if you qualify for this type of benefit.