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Taxes

The United States has several different types of taxes. The main ones to be aware of are sales tax, state income tax, and federal income tax. Other taxes, such as social security and Medicare taxes, only apply to a small number of international students.

Sales tax

Sales tax is applied to goods or services you purchase in the United States. For instance, if you purchase a shirt from a store or lunch from a restaurant, there will be a tax charge applied. The sales tax for Knoxville is 9.25 percent. We recommend that you do the math before making a purchase to make sure you are comfortable with the cost.

State income tax

State income tax is a percentage of money that you pay to the state government based on the income that you make in your job. This is typically taken out of your paycheck before you are paid. State income tax rates vary by state. Tennessee does not have state income tax so you will not see this taken out of your paycheck. If you work in another state and make an income there, you may have to pay state income tax.

Federal income tax

Federal income tax is a percentage of money that you pay to the federal government based on the income that you make in your job. This is typically taken out of your paycheck before you are paid.
 
Every international student and scholar has a filing requirement that is unique to each person. Visit the Tax Return Basics page for more information