> I don’t have to pay federal taxes and only pay state which is like 18% This sounds a bit off. California state income tax tops out at 13.3%, and the vast maj

> I don’t have to pay federal taxes and only pay state which is like 18% This sounds a bit off. California state income tax tops out at 13.3%, and the vast majority of folks owe less. Even if you include SDI/VPDI, that's only an additional 1.1% in 2022. The most common tax exemption for foreigners is an exemption from FICA taxes (Social Security + Medicare) [1], which commonly applies to certain folks with F/J/M/Q visas. But generally, they still owe both federal and state income taxes. In fact, as nonresident aliens, their effective federal income tax rate can be a bit higher due to not having the standard deduction and certain other tax benefits. Another relatively common benefit is the various tax treaties [2]. This may provide some relief from federal income tax, depending on the country and the visa status, but not necessarily a total exemption. [1] https://www.irs.gov/individuals/international-taxpayers/foreign-student-liability-for-social-security-and-medicare-taxes https://www.irs.gov/individuals/international-taxpayers/fore... [2] https://www.irs.gov/publications/p901 https://www.irs.gov/publications/p901