The United States has tax treaties with a number of foreign countries. Under these treaties, residents of foreign countries are taxed at a reduced rate, or are exempt from U.S. federal and state taxes on certain types of income and/fellowship payments they receive from sources within the United States. These reduced rates and exemptions vary among countries and specific types of income. If the treaty does not cover a particular type of income, or if there is no treaty between your country and the United States, you must pay tax on that income. For the list of tax treaty countries and their treaties, reference the IRS Publication 901.