E3 Visa Finances Guide: U.S. Taxes, Superannuation, Social Security, and Building Credit
A complete guide to U.S. tax obligations, superannuation management, Social Security benefits, and building credit for Australian E3 visa holders.
When you start working in the U.S. on an E-3 visa, you become subject to U.S. tax on your worldwide income. How that interacts with your Australian tax obligations, superannuation, Social Security, and credit history involves rules that aren't always intuitive, and getting them wrong can be expensive.
Key takeaways
- The U.S. taxes E-3 visa holders on worldwide income once they meet the substantial presence test, which most full-time workers satisfy within their first calendar year.
- Australian superannuation remains in Australia while you work in the U.S. and may be subject to complex U.S. reporting requirements, though you cannot withdraw it through DASP unless you were a temporary resident in Australia.
- The Australia-U.S. Social Security totalization agreement lets you combine work credits from both countries, requiring only 6 U.S. quarters (instead of 40) to potentially qualify for benefits.
- E-3 visa holders are eligible for Social Security Numbers, which you need for employment, taxes, and building a U.S. credit score.
- You can participate in your employer's 401k retirement plan from day one, with contributions reducing your taxable income.
Understanding your U.S. tax obligations
When you work in the U.S. on an E-3 visa, you become subject to U.S. federal income tax. Whether you're taxed as a resident or nonresident alien depends on how long you've been in the country.
When you start employment, you'll fill out Form W-4, which tells your employer how much federal tax to withhold from each paycheck. Most single E-3 holders with one job can use the standard settings. However, if you have Australian investment or rental income, you may need to adjust withholding or make quarterly estimated tax payments to the IRS to avoid underpayment penalties.
The substantial presence test
The IRS uses the substantial presence test to determine your tax residency status. You're considered a U.S. resident for tax purposes if you're physically present in the U.S. for at least 31 days during the current year, and 183 days during a three-year period that includes the current year. The 183-day calculation counts all days present in the current year, one-third of days in the prior year, and one-sixth of days two years back.
For most E-3 visa holders working full-time, this test is satisfied during the first full calendar year of employment. Once you meet this threshold, the IRS taxes you on your worldwide income, not just U.S. earnings.
What you owe: federal and state taxes
As a tax resident, you file Form 1040 (the same form U.S. citizens use) and report all income sources globally. For tax year 2026, the federal income tax brackets for single filers are:
| Taxable Income | Tax Rate |
|---|---|
| $0 to $12,400 | 10% |
| $12,401 to $50,400 | 12% |
| $50,401 to $105,700 | 22% |
| $105,701 to $201,775 | 24% |
| $201,776 to $256,225 | 32% |
| $256,226 to $640,600 | 35% |
| Over $640,600 | 37% |
The standard deduction for single filers in 2026 is $16,100 (as of tax year 2026). This reduces your taxable income before rates apply.
State taxes vary significantly. California, for example, has income tax rates up to 13.3%, while Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state personal income tax. Your total tax burden depends heavily on where you work.
Many of the most common E-3 work destinations like New York, California, Massachusetts, and Washington are high-tax states. In California, state income tax can reach 13.3% on top of federal rates. Factor state taxes into your compensation negotiations and budgeting.
Filing deadlines
Tax returns are due April 15 following the tax year. If you live abroad on April 15, you get an automatic two-month extension to June 15. You can request an additional extension to October 15 by filing Form 4868, but this extends only the filing deadline, not the payment deadline.
The Australia-U.S. tax treaty
The Australia-U.S. tax treaty helps prevent double taxation on the same income. It establishes which country has the primary right to tax specific types of income and provides mechanisms for claiming credits for taxes paid to the other country.
How the treaty works
If you earn income in the U.S. while on an E-3 visa, the U.S. has primary taxing rights over that income. You can generally claim a foreign tax credit in Australia for U.S. taxes paid, which prevents paying tax twice on the same dollars.
The treaty also affects certain types of passive income. Dividends, interest, and royalties from Australian sources may be subject to reduced withholding rates under the treaty rather than the standard rates each country would otherwise impose.
Where the treaty falls short
The tax treaty does not provide specific relief for Australian superannuation. The IRS generally treats superannuation funds as foreign trusts or Passive Foreign Investment Companies (PFICs), which creates potential annual tax reporting requirements and unfavorable tax treatment on earnings within the fund.
Many tax professionals recommend consulting with an accountant who specializes in cross-border Australia-U.S. tax issues specifically because of superannuation complexity. The reporting requirements under PFIC rules can create substantial compliance costs.
Getting your Social Security Number
E-3 visa holders are eligible for a Social Security Number (SSN) because you have work authorization in the United States. This is not the same as an Individual Taxpayer Identification Number (ITIN), which is for people who need to file taxes but aren't eligible to work.
How to apply
Apply for your SSN at any Social Security Administration office. Bring your passport with E-3 visa stamp, Form I-94 (your arrival/departure record, available at cbp.gov/I94), and your employment offer letter or I-797 approval notice if you changed status within the U.S.
Processing typically takes two to four weeks. You'll receive your card by mail at the address you provide on the application.
Why your SSN matters beyond employment
Your SSN is required for tax filing, but it's also essential for opening bank accounts, applying for credit cards, renting apartments, and setting up utility accounts. Without it, you'll face significant obstacles in establishing your financial life in the U.S.
Unlike Australia, where you might use multiple forms of ID interchangeably, the SSN functions as the primary identifier for most financial and government interactions in the United States.
E3 visa Social Security: how it works and what you'll pay
Social Security taxes are automatically withheld from your paycheck. In 2026, you pay 6.2% of your wages toward Social Security (up to the wage base limit of $184,500 (as of 2026)) and 1.45% toward Medicare. Your employer matches these amounts.
Earning credits
You need 40 credits (roughly 10 years of work) to qualify for Social Security retirement benefits. In 2026, you earn one credit for every $1,890 (as of 2026) in covered earnings, up to a maximum of four credits per year. Working full-time for one year typically earns you four credits.
| Year | Earnings per Credit | Max Credits per Year |
|---|---|---|
| 2026 | $1,890 | 4 |
The Australia-U.S. totalization agreement
The totalization agreement between Australia and the U.S. has two main purposes: preventing dual Social Security taxation and allowing you to combine work credits from both countries.
Under this agreement, if you don't have enough U.S. credits to qualify for Social Security benefits on their own, you can combine your U.S. credits with Australian work history to meet eligibility requirements. The key threshold is six U.S. quarters. If you have at least six quarters of U.S. coverage, your Australian work periods can be counted toward the 40-quarter requirement.
Can you collect Social Security if you return to Australia?
Yes. The totalization agreement allows benefits to be paid to you in Australia. However, if you worked in the U.S. for less than 10 years and are relying on totalization to qualify, the benefit amount will reflect only your actual U.S. earnings, which may be modest.
E3 visa superannuation: U.S. tax treatment and what to do with your super
Your Australian superannuation remains in Australia while you work in the U.S. on an E-3 visa. What happens to it depends on your circumstances and how long you stay.
Can you withdraw your super?
The Departing Australia Superannuation Payment (DASP) allows temporary residents of Australia to withdraw their super after leaving. However, E-3 visa holders are Australian citizens going to the U.S., not temporary residents leaving Australia. DASP applies to foreign nationals who worked in Australia on temporary visas and then departed.
If you're an Australian citizen, you cannot access your superannuation through DASP. Your super remains locked until you reach preservation age (between 55 and 60 depending on when you were born) or meet another condition of release.
U.S. tax treatment of superannuation
The IRS does not recognize Australian superannuation as equivalent to U.S. retirement accounts. Depending on how your fund invests, the IRS may classify it as a foreign trust or a Passive Foreign Investment Company (PFIC).
PFIC classification can result in unfavorable tax treatment on earnings within the fund, even if you don't withdraw anything. Some accountants recommend making an election to treat the super fund earnings as taxable annually to avoid the harsher PFIC excess distribution rules.
Should you keep contributing?
Most tax advisors recommend pausing voluntary super contributions while you're a U.S. tax resident. The tax benefits of super are designed for Australian residents. As a U.S. tax resident, contributions may not be deductible, and the PFIC complications make ongoing contributions less attractive.
HELP debt overseas: what E3 visa holders need to know
HELP (Higher Education Loan Program) is Australia's government-backed student loan scheme. If you studied at an Australian university and used the government loan to defer your tuition fees, you have a HELP debt, previously called HECS. Unlike a bank loan, HELP debt has no fixed repayment schedule. It sits with the ATO and is repaid through the tax system based on your income each year.
If you didn't study in Australia, this section doesn't apply to you.
Does HELP debt follow you overseas?
Yes. Since the 2016-17 income year, the ATO requires Australians living abroad for more than six months to make HELP repayments based on their worldwide income, not just Australian income. Before that change, Australians working overseas could defer repayments indefinitely. That loophole closed in 2017.
How repayments are calculated
The minimum repayment threshold for 2025-26 is AUD $67,000 of worldwide repayment income. From 2025-26, the ATO uses a marginal rate structure (a change from earlier years, which applied a single flat rate to total income):
| Worldwide repayment income (AUD) | Compulsory repayment |
|---|---|
| Below $67,000 | Nil |
| $67,001 to $125,000 | 15c per $1 over $67,000 |
| $125,001 to $179,285 | $8,700 plus 17c per $1 over $125,000 |
| $179,286 and above | 10% of total repayment income |
For an E-3 visa holder earning a U.S. salary, the exchange rate matters. A USD $80,000 salary converts to roughly AUD $125,000 at current rates, putting you squarely in the second repayment band. At that income level, the compulsory repayment works out to approximately AUD $8,700 for the year. Your U.S. employer doesn't withhold this - you pay it directly when you lodge your Australian tax return.
How to report your income to the ATO
If you're moving overseas for more than six months, notify the ATO through ATO Online Services in your myGov account. This triggers your overseas HELP obligations. You're still required to lodge an Australian tax return each year and declare your worldwide income. If you're a non-resident for Australian tax purposes, you report your overseas income using the non-resident foreign income schedule in myTax, or through a registered tax agent.
Practical tips for managing HELP debt from the U.S.
Voluntary repayments are always an option. You can make them at any time through your myGov account or via BPay. These are paid in Australian dollars. When the AUD is weak against the USD (as it has been at various points), voluntary repayments cost relatively less in real terms, which can make it a good time to reduce your balance faster.
HELP debt is indexed annually. If you have a significant balance and aren't making compulsory or voluntary repayments, the debt grows over time. Check your current HELP balance through your myGov account.
The ATO has mechanisms to collect unpaid HELP debt, including withholding from future tax refunds and enforcement when you return to Australia and earn Australian-sourced income. Ignoring the obligation does not make it disappear.
Does HELP debt affect your U.S. taxes?
No. HELP repayments are not deductible for U.S. federal income tax purposes. You pay U.S. taxes on your full U.S. income, and separately pay HELP repayments to the ATO from after-tax dollars. The two obligations are entirely separate. The IRS has no visibility over your HELP debt, and the ATO doesn't reduce your Australian tax liability based on U.S. taxes paid on the same income (though you can generally claim a foreign tax credit on your Australian return for U.S. taxes paid on U.S.-sourced income).
E3 visa 401k: eligibility, limits, and what happens when you leave
E-3 visa holders are fully eligible to participate in employer-sponsored 401k retirement plans. There are no citizenship or visa-based restrictions on 401k participation, as eligibility is determined by your employer's plan rules.
Contribution limits
For 2026, you can contribute up to $24,500 to a traditional 401k if you're under 50. Those 50 and older can contribute an additional $8,000 catch-up (as of 2026) contribution.
Traditional 401k contributions reduce your taxable income. If you earn $100,000 and contribute $15,000 to your 401k, you pay federal income tax on $85,000 instead.
| Contribution Type | 2026 Limit |
|---|---|
| Employee contribution (under 50) | $24,500 |
| Catch-up contribution (50+) | $8,000 (as of 2026) |
| Total employee contribution (50+) | $32,500 |
Employer matching
Many employers match 401k contributions up to a certain percentage of your salary. A common structure is 50% match on the first 6% you contribute.
What happens if you leave the U.S.?
Your 401k stays in the U.S. even if you return to Australia. You have several options:
- Leave the money in the plan if your balance exceeds $7,000 (as of 2026) (plans can force distribution of smaller balances). The funds continue to grow tax-deferred.
- Roll it into an IRA, which gives you more investment options and keeps the tax-deferred status.
- Withdraw the funds. This triggers income tax on the full amount plus a 10% early withdrawal penalty if you're under 59½. The plan administrator typically withholds 30% for federal taxes on distributions to non-residents.
If you plan to return to Australia, be aware that the Australia-U.S. tax treaty does not clearly address the treatment of 401k distributions. Australia may tax your withdrawals differently than the U.S., potentially resulting in unexpected tax liability. Consult a cross-border tax advisor before making decisions about your 401k.
E3 visa credit score: building U.S. credit from scratch
Your Australian credit history does not transfer to the United States. You start with no U.S. credit file, which makes everyday financial tasks difficult.
Why credit matters
Landlords check credit scores when you apply to rent. Car dealers use credit scores to set loan rates. Credit card applications depend on credit history. Even setting up a phone plan may require a credit check. Without established credit, you'll pay higher deposits, face higher interest rates, or be denied outright.
Getting your first credit card
Secured credit cards are the standard entry point for people with no U.S. credit history. You provide a refundable security deposit (often $200 to $500) that becomes your credit limit. Use the card for small purchases and pay the full balance each month. After six to twelve months of responsible use, you'll have enough history to qualify for unsecured cards.
Some banks offer credit cards to newcomers with SSNs and steady employment, even without U.S. credit history. American Express's Global Card Member program allows existing international cardholders to apply for a U.S. card based on their overseas history.
FBAR requirements
The Foreign Bank Account Report (FBAR) is required if the aggregate value of your foreign financial accounts exceeds $10,000 at any time during the calendar year. This includes all accounts where you have signature authority or a financial interest, including checking accounts, savings accounts, term deposits, and your superannuation.
You file the FBAR electronically through FinCEN's BSA E-Filing System by April 15 (with an automatic extension to October 15). This is separate from your tax return.
| Reporting Requirement | Threshold | Due Date |
|---|---|---|
| FBAR (FinCEN 114) | $10,000 aggregate foreign accounts | April 15 (auto extension to Oct 15) |
| Form 8938 (FATCA) | $50,000 single / $100,000 joint (end of year) | With tax return |
FATCA reporting
Form 8938 is a separate requirement under the Foreign Account Tax Compliance Act. The filing thresholds are higher than FBAR ($50,000 for single filers living in the U.S. at year end, higher for those living abroad), and it covers a broader range of foreign financial assets beyond just bank accounts.
Unlike FBAR, Form 8938 is filed with your federal tax return.
Putting it all together: E3 visa tax checklist
The financial side of an E-3 visa gets easier once you've filed your first U.S. tax return and established your credit history. The complexity front-loads into year one, and the rules around superannuation, FBAR reporting, and the interaction between Australian and U.S. tax obligations have real financial stakes.
Your first-year financial checklist:
- Apply for your SSN as soon as you arrive
- Set up your W-4 withholding correctly
- Open a secured credit card to start building credit
- Confirm whether your super fund triggers PFIC reporting
- File your FBAR if your Australian accounts exceed $10,000
- Find a tax professional with cross-border Australia-U.S. experience before your first April 15 deadline
For the complete relocation checklist beyond finances, see our guide to moving to the U.S. on an E-3 visa.
This guide is for general educational purposes only and does not constitute tax, legal, or financial advice. U.S. and Australian tax rules change frequently, and individual circumstances vary. Consult a qualified tax professional with cross-border experience before making any decisions based on the information in this guide.
Frequently asked questions
Do I need to file a U.S. tax return if I only worked part of the year?
Yes. If you meet the substantial presence test and have U.S. source income, you must file. Your first partial year may require filing as a dual-status alien (part nonresident, part resident), which has specific rules. Consult a tax professional for your first-year filing.
Can I claim the foreign earned income exclusion on an E-3 visa?
The foreign earned income exclusion is for U.S. citizens and residents who live and work outside the United States. As an E-3 visa holder working in the U.S., you're earning U.S. source income and don't qualify for this exclusion.
What happens to my Social Security contributions if I leave the U.S. before earning 40 credits?
If you've earned at least six quarters of U.S. coverage, the totalization agreement allows you to combine those credits with Australian work history to potentially qualify for benefits. If you leave with fewer than six quarters, those contributions may not result in any benefit eligibility.
Do I pay Medicare tax even though I can't use Medicare?
Yes. Medicare tax is not optional. However, if you work in the U.S. for 10 or more years (40 quarters), you will be eligible for Medicare when you reach age 65, even if you return to Australia.
Can my E-3D spouse get a Social Security Number?
Yes. E-3D visa holders (spouses) are eligible for SSNs because E-3D status includes automatic work authorization. Your spouse should apply at a Social Security Administration office with their passport, I-94, and your E-3 approval documentation.
Should I contribute to a Roth 401k instead of traditional?
Roth 401k contributions are made with after-tax dollars, so you don't get an immediate tax deduction, but withdrawals in retirement are tax-free. If you expect to return to Australia and not be a U.S. tax resident in retirement, the tax-free withdrawal benefit may be lost. Traditional 401k contributions provide immediate tax savings, which can be more valuable if your U.S. stay is temporary.
Do I need to report my Australian superannuation on my U.S. tax return?
Potentially, yes. If the aggregate value of your foreign financial accounts (including super) exceeds $10,000, you must file an FBAR. Additionally, depending on how your super fund is classified, you may have reporting obligations under PFIC or foreign trust rules. This is one of the more complex areas of cross-border tax compliance.
How long does it take to build a good credit score from zero?
With consistent responsible use of a secured credit card or credit builder loan, most people can achieve a credit score above 700 within 12 to 18 months. The key factors are making every payment on time and keeping credit utilization low (under 30% of your available credit limit).
Can I transfer my Australian credit history to the U.S.?
Australian credit history does not transfer to U.S. credit bureaus. However, American Express offers a Global Card Member program that may consider your international history when applying for a U.S. card. Nova Credit partners with some lenders to translate foreign credit reports, but this coverage is limited for Australian residents.
Is there a tax penalty for withdrawing from my 401k if I leave the U.S.?
Yes. If you withdraw before age 59½, you'll owe federal income tax on the full distribution amount plus a 10% early withdrawal penalty. The plan administrator will withhold 30% for federal taxes. Depending on your overall income, you may owe more or receive a partial refund when you file your tax return.
Do I need a U.S.-based accountant for my taxes?
Not necessarily, but it's advisable for your first year and if you have complex cross-border issues like superannuation. An accountant familiar with both Australian and U.S. tax systems can help you claim appropriate credits, meet reporting requirements, and avoid common mistakes. The Australia-U.S. expat tax community has specialists who focus specifically on these issues.
What if I have Australian rental income while on an E-3?
Australian rental income must be reported on your U.S. tax return because U.S. residents are taxed on worldwide income. You may be able to claim a foreign tax credit for Australian taxes paid on that income. The reporting gets more complex if you own property through an Australian trust structure.
About the Author
Founder & CEO @ Migrate Mate
I moved from Australia to the United States in 2023. I have had 3 jobs, and 3 different visas. I started Migrate Mate to help people like me find their dream job in the USA & help them get visa sponsorship.
