2026 H-1B Guide

H-1B Visa: Eligibility, Lottery, Wage Requirements & Employer Sponsorship

The H-1B visa is the primary work visa for specialty occupations — a bachelor's degree or higher is required, and the annual cap (65,000 + 20,000 master's) is subject to a lottery with ~14–15% selection odds. For employer H-1B sponsorship, the process requires filing an LCA, submitting Form I-129, and winning the annual lottery. US master's degree holders enter a separate pool with approximately 20% higher selection odds.

TL;DR: Cap: 65,000 + 20,000 (US master's exempt) · FY2025 odds: ~14% overall · Wage levels: Level I (entry) selected last → Level IV (experienced) selected first · Max stay: 6 years (extendable beyond with approved I-140) · Cap-exempt: universities, nonprofits, government research institutes only
Check My Eligibility → Wage Requirements
~85,000
Annual cap spots
~14%
FY2025 selection rate
6 years
Max initial H-1B stay
$460+
Base gov filing fee

What's on This Page

What is the H-1B Visa? Eligibility Requirements Cap & Lottery Process Wage Requirements Employer Sponsorship Steps Employer Costs & Fees H-1B to Green Card Path Cap-Exempt Alternatives Frequently Asked Questions Eligibility Quiz
01 — Overview

What Is the H-1B Visa?

The H-1B is a nonimmigrant work visa for specialty occupation workers — jobs requiring at least a bachelor's degree or equivalent in a specific field. It is the primary pathway for international talent with U.S. college degrees to work long-term in the United States.

The H-1B has two annual caps: 65,000 regular slots and 20,000 additional slots for applicants with a U.S. master's degree or higher (the "master's cap"). Each year, USCIS conducts an electronic lottery in March to allocate these spots among typically 400,000–500,000 registrations received.

FY2025 at a glance: USCIS received 479,953 registrations for ~85,000 cap-subject spots — a selection rate of roughly 14–15%. Registration for FY2026 ran March 7–21, 2025 with results announced by March 31, 2025. FY2027 registration window is expected March 2026.

Key characteristics of the H-1B:

02 — Eligibility

What Are the H-1B Eligibility Requirements?

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To qualify for an H-1B visa, both the position and the beneficiary must meet specific criteria. USCIS evaluates whether the job truly requires a degree and whether the individual is genuinely qualified.

Position Requirements

Beneficiary Requirements

Degree Substitution Rules

USCIS allows employers to substitute experience for education — typically, one year of professional experience for each year of college. So a bachelor's degree (4 years) can be satisfied with a combination of a 2-year associate degree plus 6 years of progressive experience. Letters from previous employers documenting the nature and duration of experience are required.

Common Eligible Occupations

Field Typical Degree Eligible
Software Engineering / Computer ScienceBS Computer Science or equivalent✓ Yes
Data Science / Machine LearningBS/MS Computer Science, Statistics, Mathematics✓ Yes
Electrical / Mechanical EngineeringBS Engineering or equivalent✓ Yes
Finance / Financial AnalysisBS Finance, Economics, Accounting✓ Yes
Marketing / Business AdministrationBS Business, Marketing (with strong evidence)✓ Yes (scrutinized)
General Business AdministrationAny degree✗ Usually not
Sales / Customer ServiceAny degree✗ Not eligible

Important: Not every job with "Engineer" or "Analyst" in the title qualifies. USCIS applies the "specialty occupation" test rigidly — administrative, supervisory, and general business roles frequently fail. A detailed job description and expert evaluation are essential before filing.

03 — Cap & Lottery

How Does the H-1B Cap and Lottery Work?

Every year, the H-1B cap lottery determines which registered beneficiaries receive the opportunity to file a full petition. Understanding this process is critical — the registration lottery is the single biggest bottleneck for most H-1B applicants.

How the Two-Round Lottery Works

  1. Round 1 — Master's Degree Cap (up to 20,000 selections)
    USCIS first selects registrations from the pool of beneficiaries with a qualifying U.S. master's degree or higher. Those not selected in this round automatically advance to Round 2.
  2. Round 2 — Regular Cap (up to 65,000 selections)
    All remaining registrations — master's degree holders who weren't selected plus all regular registrations — are entered into a single lottery pool for the 65,000 regular cap spots.

Master's degree holders have an edge. Because they get two chances (master's pool first, then general pool), aggregate selection rates for U.S. master's degree holders historically exceed those for bachelor's degree holders. The advantage is real but has narrowed as overall registrations grew.

FY2025–FY2027 Cap Calendar

MilestoneFY2025 DateFY2026 Date (est.)Notes
USCIS announces registration windowFeb 2025Feb 2026Check uscis.gov for exact dates
Electronic registration opensMar 7, 2025Mar 2026$10/beneficiary; employer or attorney files via myUSCIS
Registration window closesMar 21, 2025Mar 21, 2026Typically 2-week window; late submissions not accepted
Lottery results releasedMar 31, 2025Mar 31, 2026Emails via myUSCIS; check online portal
Petition filing window (90 days)Apr–Jun 2025Apr–Jun 2026Employer must file I-129 within 90 days of selection
Earliest H-1B start dateOct 1, 2025Oct 1, 2026All approved H-1Bs become effective October 1

What Happens If You're Selected

Selection in the lottery is not the same as an approved visa — it simply means the employer may file the I-129 petition during the 90-day window. The employer must obtain a certified LCA, prepare and file I-129 with USCIS, pay all filing fees, and include all required supporting documentation. If the petition is not filed within 90 days of selection, the selection is forfeited and cannot be recovered.

Multiple registrations: If a company registers the same beneficiary for multiple positions in the same fiscal year, all of those registrations are voided. Employers who engage in this practice harm their own employees' chances.

04 — Wage Requirements

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What Are the H-1B Prevailing Wage Requirements?

Every H-1B employer must pay at least the prevailing wage — the average wage for the occupation in the geographic area of employment, as determined by the Department of Labor. This is a statutory requirement and a common point of scrutiny in H-1B audits and RFEs.

The Four Wage Levels

DOL's Foreign Labor Certification Data Center classifies wages into four levels based on percentiles within the occupation's wage distribution for the specific geographic area:

LevelPercentile RangeDescriptionTypical ExperienceRisk Flag
Level I0–34th percentileEntry-level — basic understanding of field0–2 yearsUSCIS scrutinizes Level I for senior positions
Level II35–50th percentileQualified — solid grasp of field2–4 yearsMost common for entry-level degree holders
Level III51–75th percentileExperienced — fully competent, independent5–7 yearsReasonable for senior roles with degree
Level IV76th+ percentileFully competent — expert level8+ yearsTypically for leading/managerial roles

Finding the Prevailing Wage for Your Position

Go to FLCDataCenter.com (DOL's Foreign Labor Certification Data Center). Enter your occupation code (O*NET or SOC code), geographic area of employment, and it will return all four wage levels for that location. The employer must pay at least the Level I wage at minimum — but the offered wage must also reflect the actual duties and qualifications.

Actual Wage vs. Prevailing Wage

The employer must pay the greater of the prevailing wage for the occupation and location, OR the actual wage paid to other employees in the same classification at the worksite. This dual requirement prevents employers from undercutting existing U.S. workers' wages.

Wage level mismatch is a top RFE reason. If a position is posted as "5 years experience required" but the LCA lists Level I wages, USCIS will question whether the wage level accurately reflects the job requirements. Ensure the O*NET occupational classification and the actual job duties are consistent.

2025 DOL Wage Level Reforms

In 2025, the Department of Labor published a rule to update prevailing wage methodology, raising the Level I and Level II thresholds significantly. This rule was challenged in federal court and its status should be verified with an immigration attorney before filing.

For HR and legal teams: If you're managing an H-1B workforce, run our prevailing wage audit guide before the new floors take effect. Includes step-by-step instructions, gap analysis table, and compliance checklist.

05 — Employer Sponsorship

How Does H-1B Employer Sponsorship Work Step by Step?

The H-1B is employer-sponsored — the employer, not the employee, initiates and pays for the process. Here is what the employer and their attorney must do.

  1. Step 1: Determine Eligibility and Prevailing Wage
    The employer confirms the job qualifies as a specialty occupation, then obtains the prevailing wage determination from FLCDataCenter.com for the specific occupation code and work location.
  2. Step 2: Draft and File the LCA (Labor Condition Application)
    Using Form ETA-9035, the employer makes four attestations to DOL: pay at least the prevailing wage, no strike/lockout, notice was provided to employees, no U.S. worker displacement within 90 days. DOL typically certifies within 7 business days. An uncertified LCA cannot be used in the I-129 filing.
  3. Step 3: Register for the H-1B Lottery (March)
    During the USCIS registration window (typically early-to-mid March), the employer or their attorney files an electronic registration for each beneficiary via myUSCIS. The $10 registration fee is paid by the employer. This is not a petition — it is only eligibility to file.
  4. Step 4: File I-129 Petition (April–June)
    If selected, the employer has exactly 90 days to file the complete I-129 package including certified LCA, supporting documentation (degree, experience letters, job description), and all filing fees. Standard processing: 2–6 months. Premium Processing ($2,500, Form I-907): 15 business days.
  5. Step 5: Visa Interview (for beneficiaries abroad)
    If the beneficiary is outside the U.S., they must schedule a visa interview at a U.S. consulate after I-129 approval. Canadian citizens generally do not need a visa stamp to enter in H-1B status.
For Employers: Full H-1B Sponsorship Guide

A dedicated step-by-step guide for HR teams and hiring managers covering LCA filing, prevailing wage determination, lottery registration, I-129 preparation, and total employer cost breakdown. Read the employer sponsorship guide →

October 1 start date: All new H-1B approvals for cap-subject cases become effective on October 1 — the start of the federal fiscal year — regardless of when the petition was approved. There is typically a gap between petition approval and the H-1B start date.

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06 — Employer Costs

H-1B Employer Costs & Fees

The employer pays all government filing fees for the H-1B petition. Here is a breakdown of typical first-year costs.

Fee ComponentAmountWho PaysNotes
I-129 Petition Filing Fee$460EmployerUSCIS filing fee
ACWIA Training Fee (26+ employees)$1,500Employer$750 for employers with 25 or fewer employees
Fraud Prevention and Detection Fee$500EmployerOne-time fee for H-1B and L-1 petitions
Premium Processing (I-907)$2,500Employer (optional)15 business day guarantee
Attorney Fees$1,500–$5,000EmployerVaries by firm and complexity
Total (without Premium or attorney)$2,460
Total (with Premium + mid-range attorney)$8,460–$11,960

Note on who pays: The employer is legally required to pay all government filing fees and ACWIA fees. Asking the employee to reimburse these costs is a wage and hour violation in most states. Attorney fees may depend on employment agreement terms.

07 — Green Card Path

H-1B to Green Card: The Employment-Based Path

Most H-1B holders eventually pursue a green card through employment-based immigration. The process is sequential and can take many years, particularly for applicants from high-demand countries like India and China due to per-country visa number limits.

  1. Step 1: PERM Labor Certification
    The employer tests the labor market by advertising the position and confirming no qualified U.S. workers are available. A prevailing wage determination is obtained, and the application is filed with DOL. If audited, PERM can take an additional 12–18 months. Estimated: 8–18 months.
  2. Step 2: I-140 Immigrant Petition
    After PERM certification, the employer files Form I-140 with USCIS. This establishes the beneficiary's eligibility for employment-based immigration. Premium Processing available. Estimated: 4–8 months standard, 15 days with Premium.
  3. Step 3: I-485 Adjustment of Status
    Once the I-140 is approved and a visa number is available (based on the Visa Bulletin), the applicant files Form I-485 to adjust status to permanent resident. Estimated: 12–36+ months depending on category and country.

Why H-1B Duration Depends on Your Country of Birth

Each country gets a maximum of 7% of employment-based green cards per year. For India and China — countries with very high demand — the backlog means applicants may wait 10–20+ years between I-140 approval and visa number availability. For everyone else, the process typically takes 2–5 years from start to green card.

AC21: Portability and H-1B Extensions

Once your I-140 is approved but a visa number isn't available (country backlog), AC21 allows you to change employers without losing your place in the queue, and extend H-1B beyond the 6-year maximum in 1-year increments. This is critical for Indian nationals waiting on the backlog.

Read the H-1B to Green Card Timeline guide →

08 — Cap-Exempt Alternatives

Cap-Exempt H-1B and Alternative Pathways

If you are not selected in the cap lottery, you are not necessarily blocked from H-1B status. Understanding cap-exempt employment and alternative visa options is essential for a comprehensive immigration strategy.

Cap-Exempt H-1B Employers

H-1B petitions filed by cap-exempt employers are not subject to the annual cap lottery. These employers can file H-1B petitions year-round, outside the March registration window.

Universities

Any accredited U.S. college or university. Includes tenure-track and non-tenure-track positions. Research universities qualify for the full cap-exempt benefit.

Nonprofit Research Organizations

Organizations whose primary mission is conducting research. Includes research institutes, government labs, and independent nonprofit research centers.

Government Research Agencies

Federal, state, or local government agencies engaged in research. Examples include NIH, NASA, national laboratories, and government-affiliated research institutions.

Strategic use of cap-exempt employment: Working for a cap-exempt employer allows you to accumulate H-1B time beyond the initial 6 years. Additionally, if you previously held H-1B status with a cap-exempt employer, you may be able to return to cap-subject H-1B employment without going through the lottery again.

If the H-1B Cap Is Not an Option

VisaKey AdvantageRequirementAnnual Cap
O-1ANo cap; self-petition allowedExtraordinary ability (3+ criteria)None
L-1A/BNo cap; intra-company transfer1 year with qualifying employer abroadNone
F-1 OPT/STEM OPTNo cap; employer-sponsored work auth.Enrolled in qualifying U.S. degree programNone
E-2No cap; can be indefiniteSubstantial investment + treaty countryNone
E-3 (Australia)No cap for Australian nationalsSpecialty occupation + Australian citizen10,500/year (rarely hit)
J-1Research/training opportunitiesProgram sponsorship requiredNone (varies by category)

Read the O-1A guide →   F-1 OPT Eligibility Analyzer →   E-3 Australia Guide →

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09 — FAQ

Frequently Asked Questions

What is the H-1B cap in 2026?
The H-1B cap is 65,000 regular spots plus 20,000 additional for applicants with a U.S. master's degree or higher (the "master's cap"). For FY2025, USCIS received over 479,000 registrations for ~85,000 cap-subject spots — roughly a 14–15% selection rate. The FY2026 registration window ran March 7–21, 2025 with results by March 31, 2025.
What are the minimum H-1B eligibility requirements?
You need a bachelor's degree or equivalent (or 12+ years of progressive work experience substituting for each year of college). The position must require a degree — USCIS checks whether the industry normally requires one for that role. The employer must pay the prevailing wage for the occupation and location.
How does the H-1B lottery selection process work?
USCIS first selects up to 20,000 registrations from the master's degree pool. Any not selected go into the general pool. Then USCIS selects up to 65,000 from the combined pool. If selected, the employer has 90 days to file the full petition (I-129 with LCA). Multiple registrations by the same company for the same worker in the same year void all their registrations.
Can I transfer my H-1B to a new employer?
Yes. An H-1B portability filing allows you to start working for a new employer the day they file Form I-129. No lottery is needed for transfers — only for initial cap-subject petitions. If you are already in H-1B status, your new employer's petition is generally not subject to the cap.
What is the prevailing wage requirement for H-1B?
Employers must pay at least the prevailing wage — the average wage for the occupation in the geographic area, as published by DOL. The four levels are: Level I (entry, 0–34th percentile), Level II (qualified, 35–50th), Level III (experienced, 51–75th), Level IV (fully competent, 76th+). The employer must pay the greater of the prevailing wage or actual wage paid to similar employees.
How long can I stay in H-1B status?
H-1B is granted in up to 3-year increments with a maximum of 6 years initially. If you have an approved I-140 and a visa number is unavailable due to backlog (country limit), you may extend beyond 6 years in 1-year increments via AC21 extensions. Citizens of Chile and Singapore have H-1B1 status with different rules and 1,400/year limits.
What are cap-exempt H-1B options?
Cap-exempt employers include universities, nonprofit research organizations, and government research agencies. Their petitions are not subject to the annual cap lottery — they can file year-round. Cap-exempt institutions can also file for individuals who previously held H-1B with a cap-exempt employer.
What happens if my H-1B petition is denied?
Denied petitions can be appealed to the Administrative Appeals Office (AAO) within 30 days, or you can file a motion to reopen or reconsider with USCIS. If in valid status in the U.S., you may remain while any appeal is pending. Missing the 90-day filing window after lottery selection forfeits that selection permanently.
How much does the H-1B process cost the employer?
Basic government filing fees total ~$460 for Form I-129 plus $500 fraud fee plus $750–$1,500 ACWIA training fee depending on employer size. Premium Processing ($2,500 optional) guarantees USCIS action in 15 business days. Attorney fees typically range $1,500–$5,000. Total first-year employer cost: $2,500–$10,000+ depending on options chosen.
Does a master's degree improve H-1B lottery odds?
Yes. Registrations with a qualifying U.S. master's degree or higher get a first selection round (up to 20,000 spots) before all registrations enter the general lottery (65,000 spots). While the marginal advantage has shrunk as overall registrations have grown, studies show master's degree holders still have higher aggregate selection rates.

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