OPT to be taxed: Foreign students face 15% payroll hit under new US Senate bill

Foreign students working in the U.S. under the OPT program could soon see reduced paychecks as Senator Tom Cotton moves to end their FICA tax exemption through a new bill—the OPT Fair Tax Act.

The proposed legislation would require both foreign students on Optional Practical Training (OPT) and their employers to pay Federal Insurance Contributions Act (FICA) taxes—covering Social Security and Medicare. Currently, these workers are exempt from such taxes. Advertisement

“The bill ends the unfair tax exemption for foreign workers and puts American workers first,” Cotton stated, signaling a broader policy shift aimed at tightening rules around work authorizations for international graduates.

OPT allows F-1 visa holders to gain up to 12–24 months of work experience in the U.S. post-graduati