Do nonresident aliens pay Social Security tax? (FICA & benefits explained)

Written by  Andrew Coleman, CPA

Last updated May 22, 2026

Nonresident aliens can deal with Social Security in 2 different ways: payroll tax while working and tax withholding from benefits later.

Do non-resident aliens pay Social Security tax? This depends on the type of income, visa status, and work location of the individual, and whether a treaty or totalization agreement applies.

For the 2026 filing season, this article focuses on 2025 income and current IRS/SSA guidance. The IRS says wages paid to nonresident aliens for services performed in the US are generally subject to Social Security and Medicare taxes, with exceptions based on nonimmigrant status.

Need the broader tax residency rules first? TFX explains the difference between resident and nonresident alien status in the guide to US tax rules for resident and nonresident aliens.

At a glance

The 4 quick rules below separate FICA paid on wages from tax withheld on Social Security benefits.

Do non-resident aliens pay Social Security and Medicare taxes?

Nonresident aliens generally pay Social Security and Medicare taxes on wages for services performed in the US. For 2025 wages filed in 2026, the Social Security tax is 6.2% up to $176,100, and the Medicare tax is 1.45% with no wage cap.

The simple way to read the rule is this: paying FICA while working is different from tax withheld from Social Security benefits later.

The 2026 Social Security wage base is $184,500, so payroll for 2026 wages uses that higher limit. Medicare still has no wage base limit, and employers must withhold an extra 0.9% Additional Medicare Tax after wages exceed $200,000 in a calendar year.

So, do non-citizens pay Social Security tax? Yes, when they have covered US wages. Citizenship is not the deciding factor. Work type, tax residency, visa class, and treaty coverage matter more.

The IRS also summarizes the wage rule on its page for aliens employed in the US and Social Security taxes.

US Social Security payments to non-resident

US Social Security benefits may be paid to nonresident aliens for retirement, disability, or survivors benefits. SSA generally withholds tax from these monthly benefits at 30% of 85% of the payment, which equals 25.5% of the gross benefit unless a treaty benefit applies.

This section is about tax on benefits received, not Social Security and Medicare tax paid on wages. A person can pay FICA during US employment and later face a different withholding rule when receiving Social Security outside the US.

US Social Security benefits may be paid to non-resident aliens. Those payments may be for work previously performed in the US or spousal benefits.

Generally, Social Security benefits paid to a nonresident alien are reported on Form SSA-1042S. The applicable federal tax amount is withheld at source, and the benefit recipient receives payment net of tax withholding. IRS guidance also says SSA reports Social Security pension income and withholding on SSA’s own version of Forms 1042 and 1042-S.

Based on TFX client scenario: a retired German resident receives $10,000 of US Social Security benefits in 2025. Without a treaty claim on file, SSA may withhold $2,550, which is 25.5% of the full benefit.

That is separate from non-resident social security tax on wages. Benefit withholding is an income tax issue, while FICA is a payroll tax issue.

TFX covers related retirement and payroll issues in this guide to Social Security tax for Americans abroad. IRS Publication 519 also explains how Social Security benefits and nonresident alien tax filing rules interact through Form 1040-NR and Schedule NEC.

Withholding rates and US income tax filing

Default tax withholding on US Social Security benefits paid to a non-resident alien is 25.5% of the gross benefit. That comes from taxing 85% of the benefit at 30%, unless a US income tax treaty reduces or removes the withholding.

The default tax withholding rate on benefits paid to non-US persons is 30%. The withholding is applied on 85% of the payment. Thus, if the annual benefit is $10,000, then 30% tax will be withheld from $8,500, totaling $2,550.

Treaty status should be checked before saying that no US tax return is needed. When the correct treaty or default withholding was already taken, and this is the only US-source income, a nonresident alien may not need to file a US tax return just to report the benefit. When SSA fails to withhold, or withholds too much, the IRS says the income is reported on Schedule NEC of Form 1040-NR.

For 2025 Form 1040-NR returns filed in 2026, the due date is April 15, 2026, when the taxpayer received wages subject to US income tax withholding. Without those wages, the due date is June 15, 2026.

For a $10,000 annual Social Security benefit, the default nonresident alien withholding is $2,550 unless a treaty reduces it.

A taxpayer claiming a refund of excess benefit withholding usually works through a Form 1040-NR filing. The IRS gives current Form 1040-NR instructions in its 2025 Instructions for Form 1040-NR.

Country treaty list

Some countries have treaty rules that can reduce Social Security benefit withholding to 0%. SSA warns that the US has tax treaties with other countries, but only the countries listed in its tool exempt Social Security benefits from nonresident alien tax withholding. SSA’s own nonresident alien tax screening tool country list should be checked before filing.

Certain countries outlined in the table below have special treaty benefits where US Social Security benefits have been reduced, sometimes to 0, withholding rates.

The SSA tool currently lists 9 countries where residents may be exempt from NRA withholding on US Social Security benefits.

Switzerland was removed from the old list because SSA’s current tool does not list it for this specific Social Security benefit withholding exemption. The right check is the live SSA country tool, not a general list of countries with US income tax treaties.

I live in one of these countries – how do I get my money back?

A non-resident alien who qualifies for treaty relief usually uses Form W-8BEN to reduce future withholding and Form 1040-NR to claim a refund for prior-year overwithholding. IRS guidance says Form W-8BEN goes to the withholding agent or payer, not directly to the IRS.

To qualify for the treaty tax exemption, the beneficiary must file Form W-8BEN and present it to the US Social Security Administration or other withholding agent.

NOTE! If the form is not timely filed or the treaty article is quoted incorrectly, then the payment may have excessive withholding.

After filing Form W-8BEN, the nonresident alien can file Form 1040-NR to request the refund. Future withholding should be reduced once the W-8BEN is on file.

NOTE! Form 1040-NR is required to receive prior withholding; the Social Security Administration cannot process the refund, but it will accept the new Form W-8BEN to reduce future withholding.

The following 4 steps separate future treaty relief from a prior-year refund.

1. Confirm the treaty country and treaty article using SSA’s current tool.
2. Give Form W-8BEN to SSA or the withholding agent before the next payment.
3. File Form 1040-NR for the prior year to claim excess withholding.
4. Attach or disclose the treaty position when Form 1040-NR instructions require it.

For help with the return itself, TFX offers a service dedicated to nonresident tax return preparation.

Which nonresident aliens are exempt from FICA?

Some non-resident aliens are exempt from FICA, but only when the visa status and work match the IRS rules. Common exemptions include certain A, D, F-1, J-1, M-1, Q-1, G, and H-2A situations, with limits for spouses, dependents, status changes, and unauthorized work.

The table below gives the most practical first check for nonresident alien Social Security and Medicare tax.

F-1, J-1, and M-1 students are generally exempt for less than 5 calendar years when the work is allowed by USCIS and tied to the visa purpose. J-1 and Q-1 non-student teachers, researchers, physicians, au pairs, and similar workers are generally exempt for less than 2 calendar years under similar purpose-of-visa limits.

A person working under O-1 visa status is usually fully liable for FICA from the first day of US employment unless a totalization agreement applies.

The question of social security and medicare tax for nonresident aliens is not answered by visa status alone. Payroll needs the visa class, tax residency, work authorization, employer type, and any totalization certificate.

What if the Social Security and Medicare taxes were withheld by mistake?

Wrong withholding is fixed in different ways depending on whether the error is payroll FICA or benefit withholding. For wages, IRS guidance says the worker should first ask the employer for a refund, then use Form 843 when the employer cannot provide a full refund.

Social security tax refund for non-resident aliens usually means Form 843 when Social Security and Medicare taxes were wrongly taken from wages. A nonresident alien social security tax refund for excess tax withheld from benefits usually goes through Form 1040-NR instead.

There are 2 refund paths, and choosing the wrong one can delay the refund.

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Totalization agreements vs. tax treaties

Totalization agreements and income tax treaties solve different problems. Totalization agreements deal with payroll and social insurance coverage, while income tax treaties may reduce or remove federal income tax withholding on Social Security benefits.

SSA says totalization agreements have 2 main purposes: they help eliminate dual Social Security taxation and fill benefit protection gaps for workers who split careers between the US and another country. That is not the same as a treaty article that changes the 25.5% default withholding on benefits.

A totalization certificate can matter when a worker would otherwise pay Social Security tax in 2 countries on the same earnings. An income tax treaty claim matters when a Social Security beneficiary wants reduced withholding on retirement, disability, or survivors benefits.

Based on TFX client scenario: a Canadian employee temporarily assigned to the US may need a totalization certificate to decide payroll coverage. A Canadian retiree receiving US Social Security benefits may instead need Form W-8BEN and treaty support to reduce benefit withholding.

Social Security tax rules for nonresident aliens can turn on visa status, work location, treaty support, and payroll coverage. Schedule a free call today and let TFX help you identify the right path.