The 30% Tax on U.S. Income for Nonresident Aliens
Published November 7, 2026
Publication 519 (2025), U.S. Tax Guide for Aliens, explains how the United States taxes people who are not U.S. citizens. For tax purposes, an alien is an individual who is not a U.S. citizen. This guide covers the first question to answer, which is your status, and then the 30% tax on certain income from U.S. sources. This is general information. It is not advice about your case.
Resident or nonresident?
Your status decides which income the United States taxes. Resident aliens are generally taxed on their worldwide income, the same as U.S. citizens. Nonresident aliens are taxed only on income from sources within the United States. They are also taxed on certain income connected with a trade or business in the United States.
You are a resident for tax purposes if you meet the green card test or the substantial presence test for the calendar year. The publication explains both tests. Our guide to the substantial presence test walks through the day counts.
What counts as U.S.-source income
The 30% tax applies to fixed or determinable income. The publication describes this as income paid in amounts known ahead of time, or income with a basis for figuring the amount to be paid. It can be paid from time to time. It does not have to be paid every year.
The publication lists interest, dividends, rents, premiums, annuities, salaries, wages, and other compensation as items included in this category. It says royalties may also be subject to the tax.
The 30% tax rate
Tax at a 30% rate applies to certain items of income or gains from U.S. sources. It applies only if the items are not effectively connected with a U.S. trade or business. The rate applies to the gross amount of the income. It is not figured on income after expenses.
This is the statutory rate. A lower rate may apply under a tax treaty between the United States and your country. Chapter 9 of the publication covers treaty benefits, and Form 8833 is used to disclose a treaty-based return position.
Some income is exempt. The publication notes that some interest that meets the portfolio interest rules is not subject to the withholding rules in chapter 3. Some dividends and other items are also exempt. Check chapter 3 for each item before you assume the 30% rate applies.
Income connected with a U.S. business
Income that is effectively connected with a U.S. trade or business follows different rules. Chapter 2 explains how the source of income is decided. Chapter 4 explains how that income is taxed. If you run a business in the United States, read both chapters before you file.
Withholding and estimated tax
Payers often withhold tax before they pay U.S.-source income to a nonresident alien. Chapter 8 of the publication covers withholding, estimated tax, and how to claim credit for tax already paid. If the right amount was withheld, you may not owe more when you file.
When the return is due
Nonresident aliens generally file Form 1040-NR. The due dates depend on your tax year and on whether you received wages subject to withholding.
- Calendar tax year, wages subject to withholding: April 15 of the year after the tax year.
- Calendar tax year, no wages subject to withholding: June 15 of the year after the tax year.
- Other tax years: the 15th day of the fourth month after the year closes if you received wages, or the 15th day of the sixth month if you did not.
If the due date falls on a Saturday, Sunday, or legal holiday, the due date is the next day that is not one of those days. Chapter 7 gives the mailing address rules for each case.
Table A in the publication lists common questions and the chapter that answers each one. It is a useful place to start if you are not sure which chapter applies.
Next steps
Start by deciding your status for the year. Then list each U.S. income item. For each one, check whether the 30% rate, a treaty rate, or an exemption applies. Keep the statements you receive from payers, and read the instructions for the forms you need. If your case involves a treaty or an unusual item, a tax professional can review the details with you.
Sources: Sources: IRS, Publication 519 (2025), U.S. Tax Guide for Aliens (https://www.irs.gov/pub/irs-pdf/p519.pdf) This is general information, not advice about your specific return.
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