H-1B Take-Home Pay by State (2026): $85K, $120K, $150K

An H-1B worker earning $120,000 takes home $3,586.54 per biweekly check in Texas but only $3,259.99 in California, and $3,175.03 in New York City. Over a year that is $93,250.00 versus $84,759.58, and the salary on the offer letter is identical.

This guide shows the net paycheck and the net annual pay at $85,000, $120,000 and $150,000 across 12 locations: California, Texas, Washington, New York, New York City, New Jersey, Illinois, Georgia, Massachusetts, North Carolina, Virginia and Pennsylvania. Every number comes from the same engine that powers the H-1B Paycheck Calculator.

The federal piece barely moves between states. At $120,000 a resident has $675.77 of federal income tax, $286.15 of Social Security and $66.92 of Medicare taken from every check, whether the job is in Austin or Albany. The state is what separates a $3,586.54 check from a $3,259.99 one.

One more variable matters for H-1B holders: tax status. If your employer withholds as a nonresident alien, the IRS formula adds $16,100 to your wages before looking up the tax, so federal withholding at $120,000 jumps from $675.77 to $823.00 per check. The comparison section below shows what that does in each state.

How these paycheck numbers were built

The tables use a deliberately plain setup so you can compare states without other noise: a single filer, biweekly pay, no pre-tax deductions, and a Form W-4 from 2020 or later with nothing in Steps 2 to 4. Your real check will differ if you contribute to a 401(k), carry a family health plan, claim dependents or have a second job.

State figures are the annual state tax divided by 26 checks, not the state’s own withholding tables, so your first stub can differ by a few dollars even when the yearly total is right. California uses its 2025 schedule because the 2026 schedule is not published yet.

What comes out of an H-1B paycheck

Four layers come out of a gross check. Federal income tax follows the IRS Publication 15-T withholding method for 2026. Social Security takes 6.2% of wages up to $184,500 for the year, and Medicare takes 1.45% with no cap. H-1B workers pay both payroll taxes from the first day; there is no exemption for them as there is for some F-1 and J-1 categories. The fourth layer is state tax and state payroll levies, and it is the only one that changes with your address.

Per check, a $85,000 salary loses $379.62 to federal tax, $202.69 to Social Security and $47.40 to Medicare before any state takes a cent. At $150,000 those three become $951.31, $357.69 and $83.65. The 2026 Social Security cap is not reached at any of these three salaries, so the 6.2% runs all year; the Social Security wage base rises to $192,300 in 2027 for 2027.

$85,000 H-1B take-home pay by state

At $85,000 the spread between the best and worst state is smaller in dollars but just as visible. Texas nets $2,639.52 per check ($68,627.50 a year), while New York City residents net $2,360.63 ($61,376.41 a year). California lands at $2,455.66 per check because state tax and SDI together take $183.86 every pay period.

$120,000 H-1B take-home pay by state

The $120,000 level is where state choice starts to cost real money. Pennsylvania ($3,444.85 per check) and North Carolina ($3,421.95) are the best of the states that do tax income, but both trail Texas at $3,586.54. California, at $3,259.99, takes 29.37% of gross in total tax, against 22.29% in Texas.

$150,000 H-1B take-home pay by state

At $150,000 a Texas worker nets $4,376.58 per check and $113,791.00 a year. California nets $3,927.72 per check ($102,120.58 a year), and New York City nets $3,852.27 ($100,159.05 a year). Washington has no wage income tax, yet its employee-paid family leave and long-term care premiums still cost $80.03 per check, which leaves it at $4,296.55.

Why states with no income tax win

Texas is the clean case. With no state income tax and no state payroll deduction in this setup, the whole gap to other states is state tax. At $120,000 that gap is $326.55 per check against California, $249.34 against New York outside the city, and $141.69 even against Pennsylvania. Federal, Social Security and Medicare stay the same in all of them.

The advantage grows with salary. Total tax rate in Texas goes from 19.26% at $85,000 to 22.29% at $120,000 and 24.14% at $150,000. California’s goes from 24.89% to 29.37% to 31.92%. For a look at another no-tax state, see Florida, another state with no personal income tax.

No-tax does not always mean no deductions. Washington is the example: it has no wage income tax, but its Paid Family and Medical Leave premium and WA Cares long-term care premium come out of your check. WA Cares is not withheld if you hold an approved exemption, so check with payroll before assuming the figure in the table.

Cost of living is the counterweight. A higher net check in Texas does not automatically beat a lower one in New York or California once rent and commuting enter the picture, and salaries themselves differ by metro. Use the net figures as one input to the offer, not the whole answer.

State payroll levies that surprise H-1B workers

Several states take more than income tax. These show up as separate lines on the stub and are already inside the state columns in the tables above:

• California: State Disability Insurance (including paid family leave) takes $60.00 per check at $120,000, on top of $266.55 of state income tax.
• New Jersey: employee-paid TDI, FLI and unemployment/workforce contributions add $26.71 per check at $120,000.
• New York: SDI and Paid Family Leave add $17.04 per check at $120,000, and New York City residents also pay a local income tax of $162.17 per check.
• Washington: PFML and WA Cares add $64.03 per check at $120,000.
• Massachusetts: the PFML employee share is part of its $243.54 state line at $120,000.

Illinois, Georgia, North Carolina, Virginia and Pennsylvania show income tax only in this setup. For one of those, see the Virginia 2026 state income tax brackets.

The calculator also shows these levies line by line. For a plain-language walkthrough of what each stub line means, read our guide to H-1B paycheck deductions.

Resident versus nonresident alien H-1B withholding

Federal withholding depends on how your employer classes you. A resident alien for tax purposes is withheld like a U.S. citizen. A nonresident alien is withheld using the same Publication 15-T tables, but the employer first adds a fixed amount to the annualized wage, which is $16,100 for 2026. That higher wage lands in a higher bracket, so more tax comes out of each check.

Here is the effect on a smaller, simpler case. An $80,000 salary in Texas has an adjusted annual wage of $71,400 as a resident and $87,500 as a nonresident alien, which moves annual federal withholding from $8,770.00 to $12,312.00, or from $337.31 to $473.54 per check.

At $120,000 the add-on costs $147.23 per check in every state, because it only affects the federal line. Texas drops from $3,586.54 to $3,439.31, and California drops from $3,259.99 to $3,112.76. That is $3,828.00 less over 26 checks.

Withholding is not the same as the tax you finally owe. If your status is resident alien or you file as one, you can square up on your return, and a correct W-4 can reduce the gap. Our guide to resident versus nonresident alien tax status explains which category you are likely in, and the Form W-4 guide for H-1B and OPT workers walks through each step.

What to do before you accept an offer

Compare offers on net pay, not salary. Take each offer’s salary and work state, run it through the calculator with your tax status, and compare the annual net figure. Then adjust for rent and commuting costs in each city.

• Decide your tax status first (resident or nonresident alien), because it moves federal withholding by up to $147.23 per check at $120,000.
• Add your real 401(k) and health premium to see the actual check; remember NJ and PA tax 401(k) deferrals.
• Confirm with payroll which state levies apply, such as WA Cares or the local tax for New York City residents.
• Check your W-4 again after the first stub; our W-4 guide covers the two-job and dependent steps.

These figures are estimates, not tax advice. A CPA or your payroll team can confirm the exact amounts for your situation.

Frequently Asked Questions