Do H-2B Visa Workers Pay Taxes? What Employers and Workers Need to Know

Every year, thousands of seasonal businesses in the U.S. rely on the H-2B visa program to fill temporary, non-agricultural roles. Landscapers, hospitality companies, amusement parks, seafood processors, and many others depend on H-2B workers to meet peak seasonal demand.

But one of the most common questions I hear from both employers and workers is: “Do H-2B visa workers pay taxes?”The answer is yes—but as with most things in immigration and employment law, the details matter.

This post outlines the basics of how taxes work for H-2B employees, why compliance is important, and what both workers and employers should keep in mind.

Federal Income Tax: Yes, H-2B Wages Are Taxed

Like U.S. workers, H-2B visa employees must pay federal income tax on the wages they earn in the U.S. Employers are required to withhold these taxes from each paycheck. Depending on the worker’s state of employment, state income tax may also apply.

Residency Status: Nonresident or Resident for Tax Purposes?

Most H-2B workers are considered nonresident aliens for tax purposes when they first arrive. This is because they do not typically meet the Substantial Presence Test in their initial year.

However, if an H-2B worker spends enough time in the U.S. over multiple years (183 days within a three-year lookback period), they may become classified as a resident alien for tax purposes. Residency status determines which tax forms must be filed and how income is taxed. Contact a tax professional to assist with filing your taxes correctly.

Social Security and Medicare: Withheld from Paychecks

Unlike some other visa categories (such as J-1 or F-1), H-2B visa holders are subject to Social Security and Medicare (FICA) taxes. Employers must withhold these contributions just as they would for U.S. workers.

This means H-2B workers contribute to these programs even though they may never receive benefits—a point of frustration for many, but nonetheless a legal requirement.

Tax Documents: The W-2 Form

At the end of each tax year, H-2B employees should receive a Form W-2 from their employer. This document reports total wages earned and all taxes withheld (federal, state, Social Security, and Medicare). Employers are required to provide W-2s by January 31 of the following year.

If a worker has not received a W-2 by February, they should immediately contact their employer.

Filing a Tax Return: Required Every Year

All H-2B workers must file a federal income tax return for the year in which they worked in the U.S., even if they have since returned home. Depending on the state where they worked, they may also need to file a state tax return. Filing incorrectly—for example, submitting a resident return when a nonresident return is required—can create problems with the IRS and even affect future visa or green card applications.

Consequences of Not Filing

Failing to file taxes can result in IRS penalties, fines, and interest. More importantly for H-2B workers, tax noncompliance may be raised in future immigration applications. A history of failing to file returns can damage credibility with U.S. immigration authorities.

The annual tax filing deadline is usually April 15. Workers who miss this deadline may face penalties of 5% of unpaid taxes per month, up to a maximum of 25%.

Practical Guidance for Employers

While the responsibility for filing ultimately rests with the worker, employers play a key role in tax compliance:

• Ensure proper withholding of federal, state, Social Security, and Medicare taxes.

• Provide W-2s to H-2B employees by January 31.

• Consider offering information or resources (such as multilingual instructions or tax preparation contacts) to workers.

Supporting tax compliance helps protect both the worker and the employer from future complications.

Key Takeaway

Yes, H-2B workers pay taxes—federal income tax, state income tax (in most states), and FICA taxes. They must also file annual tax returns, typically as nonresidents. Employers should take care to properly withhold and report taxes, while workers should stay compliant to avoid penalties and protect future immigration opportunities.

Understanding these obligations not only keeps everyone on the right side of the law but also ensures a smoother, more secure employment experience for both sides of the H-2B program.