OPT Students in the U.S. May Soon Face New Tax Burden

International students in the U.S. under the Optional Practical Training (OPT) program may soon be required to pay additional taxes on their earnings, according to a new legislative proposal.

The proposed DIGNITY Act of 2025, introduced by U.S. lawmakers including Congresswomen María Elvira Salazar and Veronica Escobar, seeks to impose Social Security and Medicare taxes—commonly referred to as FICA taxes—on the wages earned by OPT participants. Currently, foreign students on OPT are exempt from these taxes.

If the Act is passed, these students will be required to contribute:

6.2% to Social Security (matched by the employer, totaling 12.4%)
1.45% to Medicare (also matched by the employer, totaling 2.9%)

The Social Security tax has a wage base limit of $176,100 for 2025, while Medicare tax applies to all wages without a cap.

The OPT program, which allows international students to gain work experience in the U.S. for up to 12 or 24 months after completing their studies, has long been a popular pathway to employment. However, it has also faced criticism and proposals for termination, particularly during the Trump administration. Key figures such as Jessica Vaughan and former USCIS director Joseph Edlow have advocated for ending the program altogether.

In addition to the tax provisions, the DIGNITY Act of 2025 aims to modernize the student visa system and streamline the transition from education to employment for foreign graduates. It also includes a broader immigration reform agenda, such as a proposed 7-year "Dignity Program" granting legal status to undocumented immigrants based on good conduct and restitution.

Aug. 4, 2025 6:20 p.m. 420

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