H1B Visa vs OPT: What Every International Student Should Know Before Studying in US
The majority of international students who come to the USA for higher education aim to stay in USA and build their career. For this, any F1 student in USA would be required to obtain Optional Practical Training (OPT) and then eventually transition to the H1B visa. In 2024, USA accepted more than 1.1 million international students. Additionally, 71% of approvals for the H1B visa were given to Indian applications. However, with the new H1B visa fee rule in USA, introduced by the Donald Trump administration on September 19, 2025, Indian students are going to be majorly impacted. With only 85,000 new H1B visas available each year, an increase in the H1B visa fee will create uncertainty in achieving sponsored H1B jobs. Now, the visa fee for an H1B visa is $100,000, which in Indian rupees is around INR 88 Lakhs. It is important for every international student to know the details about H1B vs OPT before applying to study in the USA. Read the article to understand the recent news on H1B and OPT tax and more related details.
This Story also Contains
- What is the H1B Visa?
- What is the H1B visa fee hike?
- What is OPT?
- What is the OPT tax proposal?
- H1B vs OPT for Indian Students
- Challenges Faced By Indian Students on H1B and OPT
- Conclusion
What is the H1B Visa?
The H1B visa is a non-immigrant work visa that permits US employers to sponsor highly skilled international professionals. This visa is valid for three years but can be renewed for a total of up to six years. It is a competitive visa as it has an annual limit of 85,000 visas.
What is the H1B visa fee hike?
The Trump administration has recently announced a hike in H1B visa fees. Earlier, the visa fee used to range between USD 2,000 - USD 5,000. The new H1B visa fee is $100,000. To obtain an H1B visa, the employer is required to file a petition on behalf of the applicant. This is considered a great pathway towards a Green Card in the USA, which is permanent residency.
Must Read: How Raising Fees on H1B by Trump Will Impact Indian Students?
What is OPT?
Optional Practical Training (OPT) is a temporary work permit that allows international students on an F1 visa to obtain practical experience in their chosen field. It is a great pathway for international students aiming to enter the job market. The OPT is a 12-month training program but if you have graduated with a STEM (Science, Technology, Engineering, and Math) degree in USA then your OPT can be extended for an additional 24 months. For many students, OPT is a bridge between an H1B visa, as it allows them to obtain sponsored job options in USA.
What is the OPT tax proposal?
Recently, the Trump administration has submitted a proposal to charge tax on OPT students and employers. This is possible under two acts known as the Dignity Act and HIRE Act. As international students are exempt from paying Social Security and Medicare taxes, the new proposal requires both the employee and the employer to pay these taxes. Additionally, under the HIRE Act, US organisations will also be required to pay 25% of tax.
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H1B vs OPT for Indian Students
It is important that Indian students aiming to study in USA and who are already studying in USA understand the difference between H1B and OPT. The following table highlights the difference between the two.
Particualrs | OPT (Optional Practical Training) | H1B Visa |
Purpose | Temporary work permit for F1 students often transitions to an H1B after completion | Temporary work permit for international skilled workers |
Duration | 12 months (36 months with STEM extension) | 3 years (extendable to 6 years) |
Sponsorship required | No | Yes |
Field of Work | Can work with any employer in the same field of study | Must work with the sponsored employer only |
Quota | No limit | Annual limit of 85,000 visas |
Green Card pathway | No | Yes |
Challenges Faced By Indian Students on H1B and OPT
Due to the introduction of the increased H1B visa fee of $100,000 and the proposed OPT tax, Indian students will face major challenges. Some of the challenges are listed below.
Increased Competition: As the H1B increased fee is to be paid by the US companies that sponsor international skilled workers, there will be increased competition. Even if companies that will pay the $100,000 H1B visa fees will recruit highly skilled workers for senior positions.
Limited Job Opportunities: Entry-level or mid-level organisations might not be able to afford the high visa fees for H1B, resulting in limited job opportunities. To save costs, companies will start recruiting from the US itself.
Reduced OPT Transitions: As the OPT program provides an added advantage for international students to transition to the H1B after completing the OPT, the recent H1B fee hike and proposed OPT tax will reduce this opportunity. The increased costs for US companies will result in strategic hiring affecting international workers.
Financial Stress: The ongoing situation in the USA has increased the financial stress for students who are currently studying or enrolled in teh OPT program. There is uncertainty for them to achieve the H1B visa due to the increased cost.
Conclusion
Many international students who plan to study in USA also plan to build their career there. To successfully do so, they require the H1B visa or obtain OPT before that. It is highly important that aspiring students understand the ongoing situation and its impact before making any decision. OPT is a short-term job opportunity that will eventually end in 12 months. Then, the majority of students will want to transition to the H1B visa. But with the recent hike in H1B visa fees, this will become challenging. Students should research well before applying and aim for the right employers.
Also Read,
Frequently Asked Questions (FAQs)
Q: Is OPT the same as H-1B?
A:
No, OPT is not the same as an H1B visa. OPT is a short-term work opportunity for F1 students, whereas an H1B is a work permit for international skilled workers. However, OPT students transition into an H1B visa after completing the program.
Q: What are the disadvantages of OPT?
A:
The OPT program has strict rules and regulations stated by the Student and Exchange Visitor Information System (SEVIS). If any rule is violated, it could lead to deportation or rejection for a future H1B visa. Recently, the US government proposed a tax for the OPT employees and employers. They have proposed that the employers and employees on OPT pay the Social Security and Medicare taxes under FICA. If passed, then this will also be a disadvantage of OPT as it will increase the cost.
Q: Can I get H-1B without OPT?
A:
Yes, you can get an H1B without the OPT. However for this you must ensure that you are not in USA and follow the proper consular process to obtain an H1B and get it stamped in your passport.
Q: Can you get H-1B after OPT?
A:
Yes, OPT acts as a bridge for international students to obtain the H1B visa. As OPT is a short-term work authorization in USA, it allows students to obtain work experience and then eventually get a sponsored job via H1B visa.
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